Capitalism and Freedom (Phoenix Books) [Paperback]

Milton Friedman (Author)

Book Description

Series: Phoenix Books | Publication Date: September 15, 1982

In the classic bestseller, Capitalism and Freedom, Milton Friedman presents his view of the proper role of competitive capitalism--the organization of economic activity through private enterprise operating in a free market--as both a device for achieving economic freedom and a necessary condition for political freedom. Beginning with a discussion of principles of a liberal society, Friedman applies them to such constantly pressing problems as monetary policy, discrimination, education, income distribution, welfare, and poverty.

"Milton Friedman is one of the nation's outstanding economists, distinguished for remarkable analytical powers and technical virtuosity. He is unfailingly enlightening, independent, courageous, penetrating, and above all, stimulating."-Henry Hazlitt, Newsweek

"It is a rare professor who greatly alters the thinking of his professional colleagues. It's an even rarer one who helps transform the world. Friedman has done both."-Stephen Chapman, Chicago Tribune

Product Details

• Paperback: 208 pages
• Publisher: University of Chicago Press; 2 edition (September 15, 1982)
• Language: English
• ISBN-10: 0226264017
• ISBN-13: 978-0226264011
• Product Dimensions: 7.9 x 5.3 x 0.5 inches
• Shipping Weight: 6.4 ounces
• Average Customer Review: 4.2 out of 5 stars  See all reviews (54 customer reviews)
• Amazon Best Sellers Rank: #241,020 in Books (See Top 100 in Books)

More About the Author

Milton Friedman is a senior research fellow at the Hoover Institution, Stanford University, and the Paul Snowden Distinguished Service Professor Emeritus of Economics at the University of Chicago. In 1976 he was awarded the Nobel Prize in economics. He has written a number of books, including two with his wife, Rose D. Friedman---the bestselling Free to Choose and Two Lucky People: Memoirs, the latter published by the University of Chicago Press.

Customer Reviews

Most Helpful Customer Reviews

231 of 275 people found the following review helpful:

5.0 out of 5 stars Compelling and informative, November 18, 2000

By 

"ebreit42" - See all my reviews

This review is from: Capitalism and Freedom (Phoenix Books) (Paperback)

Milton Friedman, far from just paraphrasing Keynes, has given a grand refutation of Keynesian economics as well as argued persuasively for the free-market.

"Capitalism and Freedom" dispels the myths about capitalism that have become so prevalent in our society: that the free-market caused the depression (it was actually a tyrannical Federal Reserve), that socialism can be democratic, and others. Milton's prose is clear and the book is good for those who haven't majored in economics. He gives an unwavering defense of personal freedom and individual autonomy from a minimalist government perspective.

This book is an important contribution to public discourse and although written about 40 years ago, still has relevance today.

Friedman discusses public education, roads, minimum wage laws (which he calls, "the most anti-black law on the statute books," and rightfully so as you'll see if you read this book), as well as the how so-called "progressive" tax system and welfare actually hurt the poor.

Friedman's other great contribution is "Free to Choose," which was written about 20 years ago and expounds on the ideas in "Capitalism and Freedom" in a bit more depth. But this is a good, short, concise book to start with that'll get you asking questions.

20 of 22 people found the following review helpful:

4.0 out of 5 stars Very good defense of the free market, September 24, 1999

By A Customer

This review is from: Capitalism and Freedom (Phoenix Books) (Paperback)

This book quite concisely demonstrates Milton Friedman's gift as an economist. It, however, also depicts his inferiority to Hazlitt in terms of writing ability. While many of his essays and points are very interesting and precise, the book is VERY dry. One should not let the small size fool them when purchasing this book, it takes quite a commitment and interest in the subject to make it through the book. That said, Friedman elucidates just what capitalism is and should be. He does believe in some government, however, he argues (and quite successfully) that it should be as limited and nonactivist as possible. I certainly recommend this for anyone interested in just why Milton Friedman (and other laissez-faire capitalists) thinks the way he does. Henry Hazlitt's, "Economics in One Lesson" is a less difficult read and is also better constructed. I would recommend that as prerequisite for tackling this book.

71 of 87 people found the following review helpful:

5.0 out of 5 stars Excellent, brief articulation of Friedman's beliefs, July 16, 2002

By A Customer

This review is from: Capitalism and Freedom (Phoenix Books) (Paperback)

Friedman's critics and fellow travelers in the libertarian fold rightfully viewed Capitalism and Freedom as a landmark book in 1962. The author brilliantly, if albeit briefly, articulated his theories of human behavior, which stood in contrast to the prevailing Keynesian ideology. The book has stood the test of time, and has become a classic part of libertarian literature. Like Marx's Das Kapital, the book has become a common point of reference for review in many college courses for members of the Left and the Right.

Some quick notes. The book was not written as an exhaustive economics treatise that purported to evaluate every single possible component of economics. Friedman did not present every single ideological permutation's view of price supports for farm products, as an example. Anyone looking for Every Possible Libertarian Opinion on a Given Economic Question, much less the contrasting viewpoints of Marxists/Neo-Keynesians/Flat Earth Society proponents, will need to look elsewhere (Keynesian Paul Samuelson's classic work, "Economics", is recommended for as a starting point). Friedman's reputation in the economics profession was not earned from this book, but his other works, especially his "Monetary History of the United States".

As for Paul Krugman's criticisms of Milton Friedman, the potential reader should heed the old axiom, "consider the source". Krugman is a brilliant economist, who after being exposed for decades to a mass of information on the failings of government meddling in the economy, persistently recommends a watered down version of the same failed policies that didn't work in the past. Interestingly enough, he belongs to that peculiar breed of economist who stridently defends "free" trade between nations, but somehow believes that individual entrepreneurs in a national economy require "guidance" from Big Brother (regulate, baby, regulate).

Krugman, like many economists of all political preferences, carefully chooses data that conforms to his preconceived opinions (monetarism under Thatcher and the early Volker years in the US), while excluding any information that might challenge his assumptions. Krugman fails to mention that in 1979, with 21% interest rates and 13.5% CPI in the US, his fellow Keynesians were recommending as a "cure" an increase in inflationary spending, higher marginal tax rates, and increased spending by the government. Some cure. Which is exactly why so many people anxiously embraced the monetarist creed at the time. Equally bogus is his claim that Volker's altered policies in the mid-1980s were a reversion to Keynesian monetary doctrine. Krugman's analysis of supply-side economics, which Friedman never supported, contains many of the same "ignore the facts" approach.

Final note. Many of the same economists who criticize Friedman for his lack of intellectual rigor slam Robert Lucas, another University of Chicago Nobel Prize Winner, for being too rigorous and dependent on advanced mathematical models that don't reflect the "real world".