Customer Reviews

Capitalism and Freedom: Fortieth Anniversary Edition

5 star:		(68)
4 star:		(16)
3 star:		(8)
2 star:		(5)
1 star:		(9)

 

 

Milton Friedman is one fo the strongest proponents of freedom in society as the only way towards development (a concept later expanded by Amartya Sen). This book is not an economics textbook, since he does not spend much time on the basic concepts of economics such as price theory. He assumes a bit of knowledge and uses it to make the case for many different economic ideas ranging from macroeconomics (monetarism) to microeconomics (school vouchers).

For a book that was written in the 60s, it is amazing how current his ideas remain. It is perhaps the most important book on the libertarian philosophy, focusing on preventing the accumulation of power by any individual or group of individuals in society.

Overall, it is a great read for someone familiar with economics and social sciences, it will definitely expand your horizons of thought. However, if you are looking for an introduction to interesting eocnomic ideas, I would suggest you read Free to Choose, which Friedman wrote a dozen years later to reach a more general audience.

I bought this book because I understood that Milton Friedman was a leader in (classical) liberal (meaning libertarian) economic thinking. Now I see why. Pure genius. This book appears to be written to the general public, although I must say that if are a complete stranger to economics certain parts of this book may confound you. I am a beginning student of economics, and only 2 paragraphs were out of my grasp. It's true, some of this book was a little dry, but those sections were short. The scope of the book is surprisingly wide for it's size (202 pages in this edition)-yet it's level of detail is satisfying.

Friedman's arguments were compelling and well constructed.

If you are a progressive, (modern) liberal, socialist, statist, marxist (or whatever else) and want to know what free-trade libertarians believe-this is to book for you.

If you are an economic conservative or a libertarian (as I am) and you want to read a great book that will make you smile-this is the book for you.

Overall a fantastic book.

I liked his other books more. "Capitalism and Freedom" has many of the downfalls of dry, boring academic writing. Also, Friedman makes rigidly-ideological attacks without support which, in retrospect, are clearly distorted and embarrassing, hurting the authority of his ideas. Instead, Milton Friedman's best book for general readers is Free to Choose: A Personal Statement. I recommend that book instead. He wrote that book later in his career and, mercifully, gets straight to his message and is easier to read.

Readers interested in free markets should read the outstanding introduction to economics called Naked Economics: Undressing the Dismal Science (Fully Revised), which is easy to read for general readers. Also consider the masterpiece economic history of the United States and capitalism called Empire of Wealth: The Epic History of American Economic Power

For a contrary view from Friedman (but still based on economics), read Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism, which shows that actual business history shows that government investments in the economy and protections have been needed to create abundant wealth.

An all-time favorite of mine, Capitalism & Freedom creates a framework of classic liberalism and argues forcefully in favor of free-markets and decentralization over the expansion of government involvement in economic and social affairs. Friedman builds his argument from the ground up by identifying coercion as the State's distinguishing feature over all other societal organizations. From the (classic) liberal's perspective, this aspect shapes the relationship between citizen and government, and strictly limits the appropriateness of State involvement in society, particularly with regard to well-intentioned programs and policy.

Friedman uses this foundation to build a case for limited government in economic matters, citing in particular the consequences of monetary and fiscal policy abuse. In an exceptionally apt comparison, Friedman argues that the same rationale that limits government interference with free speech should likewise apply to government interference in the economy: namely, that constraints be applied to monetary and fiscal policy to limit the potential for government to do harm in its pursuit of doing good. Friedman gives numerous examples in which government officials, exercising carte-blanche economic authority, have further aggravated economic crises by applying a case-by-case standardh to different economic scenarios.

Having clearly laid out his political philosophy, Friedman builds his case for free-markets, detailing control measures intrinsic of a laissez-faire economy. From floating exchange rates to voucher-funded schooling, union contracts to charity, Friedman argues that the free-market harnesses the productive potential of millions of individuals and corporations, reconciling their preferences in a competitive process far more efficiently than any collective body. Throughout the book, Friedman debunks popular myths, disputes misunderstandings, and challenges the conventional wisdom prevalent among intellectuals and social elites of his day and ours.

The book's only drawback is its age and somewhat antiquated writing style that would certainly make it difficult for some readers to fully understand (particularly those who are victims of public school "education"). Friedman references several examples that would have been more easily recognized in the 1960s, but will not be immediately familiar to younger readers. Still, this brilliant work presents the core principles of laissez-faire capitalism and classic liberalism in a relatively clear manner, and is a must-read for anyone studying the dynamics of free-markets and free societies.

This book is extremely important! Together with another classical von Hayek's "Road to Serfdom" and Amartya Sen's "Development as Freedom" it gives a basic argument for thinking about politics and economics.

In today's Russia both common people and scientists/politicians are involved in post-planned economy discourse. They look at the free markets as something chaotic, uncotrolled and therefore - bad. They are thinking in terms of state intervention and paternalism and that's a big mistake.

This book won't give concrete recipies for recovey in transitional or developing countries. But it will give a framework for thinking about resource allocation, taxation and spending, monetary policy and other stuff from the right point. A point where free society stands.

It is funny that the negative review came from a fellow Brazilian. As someone that lived there for 25 years, I can tell you that if the Brazilian people and its government understood the message of Friedman's book the country would not be in the deplorable position it is (and it has ever been). It is not the corporations that will look over the people, it is the people who will look over themselves, and use the corporations to achieve their goals. The real problem is when government intervenes, and people think that is the right way to do things, since they are "entitle" to this and that. It is because of people like you, dear Brazilian, that the country is what it is.

Reading this book gave me a whole new perspective about life, economics and individual responsibility. It's a must for everyone, even if you are not a student of economics.

Occasionally one stumbles upon a work that is truly enlightening and not only thought provoking, but thought changing. This book belongs to that highest category of literature. Friedman, a Nobel Prize laureate, lays out a concise explanation of the basic market forces that control markets and then uses those principles to support his classical liberal ideals. For one who's mind is open, Friedman's exposition can radically change your view of the world. People have a tendency to make erroneous assumptions about economics(like the idea that raising the minimum wage will help workers) that are totally wrongheaded(raising minimum wage actually causes employers to hire fewer people), though seemingly supported by common sense. Capitalism and Freedom will set you on the right track to understanding how things truly work. Most importantly though, Friedman explains how capitalism and freedom are irrevocably linked and that one necessitates the other. This is a must read for anyone serious about politics, even if you don't agree with it wholeheartedly it gives you a perspective from where libertarians are coming from.

Overview / Review: Milton Friedman, like him or hate him, is an essential economic theorist to tackle if one is interested in that field or in theories of economic justice. Having a progressive bias, I disagree strongly with many Friedman's theories. Having said that, for anyone interested in getting the essentials of his "liberal" (used in the older, more classic sense) economic views would do well to read this book. Friedman is opposed to state intervention in individual freedom, so many see Friedman as a modern counterpart to Adam Smith. Friedman advocates a free-market economy, with minimal taxation and government interference, because he believes the free market approach assures the greatest measure of freedom, justice, and overall affluence. Many modern conservatives have echoed the arguments he makes herein.
Friedman is actually convincing in his review on a few counts - the abuse of licensure, the problems of tax loopholes, and the fact that there are frequent shortcomings of the well-intended social welfare state. Having said that, however, Friedman does seem unduly biased in favor of a society so individualistic it is therefore almost atomistic, with little to no social cohesion. Some of his arguments are more assertions and claims than full-blown arguments, and one wishes he had addressed major issues in more detail (perhaps he does elsewhere). The book's virtue is that it is brief, but its weakness is also that its arguments are often too brief, and too compact. Karl Marx for example, has many faults in his theory that can be found, but Friedman too casually blows off Marx in about one page of analysis (Chapter 10, p. 167-8). Friedman's argument for a very limited government, and against socialism/communism, would have been more convincing if he had devoted a full chapter to Marx for one, and more attention to other matters of social justice, inequality, and oppression.
In a nutshell: this book encapsulates Friedman's "liberal" or laissez-faire approach to a wide range of issues on economics, government, and capitalism. The free individual is given utmost importance, and government that governs best is that which governs (or interferes) least in his Friedman's view. Not convincing from the standpoint of those interested in progressive social justice (Niebuhr's views on selfishness and power are more cogent), but essential to read and analyze if one is interested in economics and ethics.

As the other book reviews here suggest, there are plenty of what on the television series The West Wing were called "Milton Friedman worshippers" out there. For those who are not, it may be instructive that his ideological rival, Paul A. Samuelson, calls Friedman an "eminent scholar" and Capitalism and Freedom a "classic book...All thoughtful economists should study his arguments carefully" (Economics, 17th ed., pp. 41-42). Enough said.

If your intent is to read only one book by Milton Friedman, you should pick Free to Choose. Arguably, Capitalism and Freedom is slightly more theoretical, while Free to Choose is more practical and more recent. But the books don't duplicate in contents, and it's a most worthwhile use of time to read both: first Capitalism and Freedom and then Free to Choose.