Capitalism And Freedom

According to Friedman, the market is capable of addressing many problems that might exist in a capitalist society. When used properly, it can save a society from a host of ills. Friedman describes how a free market supports individual autonomy, gives consumers a variety of products to choose from, and raises the quality of these products through competition. He notes how the economic freedom of the free market facilitates political freedom while economic systems of the past made “the typical state of mankind [...] tyranny, servitude, and misery” (9). Friedman also argues that the free market prevents coercion, regardless of a person’s beliefs, personality, and other characteristics unrelated to trade.

Friedman believes the free market and systems that embrace it—namely competitive capitalism—deserve credit for the most important advances of the last several centuries, including the end of serfdom and the growth of the middle class, innovations such as cars and central heating, and reductions in prejudicial treatment of minorities. He also thinks it encourages individual talent to flourish, raises the average standard of living, and minimizes inequality. Of particular importance is the free market’s role in supporting social environments that allow political freedom, dissent, and open debate. As Friedman puts it, “I know of no example in time or place of a society that has been marked by a large measure of political freedom, and that has not also used something comparable to a free market to organize the bulk of economic activity” (9).