Capitalism and Freedom Summary
5 min read ⌚
In the 20th century, the world feared the clash between two titans, which could have resulted in a massive catastrophe. Capitalism on one side, Socialism on the other, created the Iron Curtain.
Our book summary provides insights on Freedom, as the most critical merger between these ideologies.
Who Should Read “Capitalism and Freedom”? And Why?
Apparently, not many individuals were skilled to expose the myths linked to the Great Depression. Even so, the Great Depression took place because the society miscalculated many things, including lack of expertise on inflation.
All these matters aside, Friedman in a race against time, managed to show the world that his methods are reliable and trustworthy. We welcome you to explore the mysteries of “Capitalism and Freedom” so that you’ll also support the free-market economy with limited interference from the governmental institutions.
About Milton Friedman
Milton Friedman was born on July 12th, 1912 in Brooklyn. He is a renowned American economist and a member of the intellectual leaders of Chicago Price Theory. Milton won the Nobel Prize for his extensive analysis and research on the monetary history and stabilization policies. He died in 2006, at 94 years of age.
“Capitalism and Freedom Summary”
1962 classic written by Milton Friedman in a new format, enriched with new facts restarts the capitalist manifesto. At first, as you may have assumed, it was rejected and considered antagonistic. Years of struggle, back and forth, up and under, had only increased the Keynesian influence, and its establishment. In the mid-60s, the hostile discussion reached its peak, when Friedman once again showed lack of appreciation for today’s state governance, meanwhile a liberal deliberately tried to provoke him by attacking his views.
This marked the beginning of an era, that is later going to reshape the economic system. The proper role of central power can never be found. For as long as we exist, there will always be room for improvement in the way a country is being governed. In other words, politics has an immense impact on the country’s economy. Take into consideration, years of development from Feudalism to Democracy, from superstition to education, from hunting to art.
What was Milton’s turning point:
After exposing his radical views related to the military draft, he received “negative” standing ovation and cheers of students who clearly recognized the need for modification but weren’t prepared to accept it to full extent.
Let’s cut right to the chase
Even though this wasn’t the best first impression, Friedman stood true to what he believed it’s righteous and prosperous. Suddenly, all things changed, when the world was on the brink of war, between two highly different economic systems, the leaders were forced to analyze their methods and change their policies. With wings on his back, Friedman signaled the world to overcome the ignorance of Capitalism and warmly accept Freedom. It was the moment of truth, and perhaps the critical point in his professional career.
The drama continued to unfold when Friedman, obtained the Nobel Prize in 1976 as a result of his contribution to economics. The ideas presented years ago now were more acceptable to the economists, and other skeptics who neglected the notion that Capitalism is not the only route to prosperity. The Reagan Administration was first to offer real support, despite the mainstream effect this idea had on previous administrations.
Nevertheless, many of his thoughts remain buried beneath the surface due to their controversial background. First and foremost, you have to be keen to learn the secrets of economy, while staying impartial and open to the truth. Every once in a while, individuals bounded to traditional principles, fail to identify the necessity for change.
Learn more about this endeavor, because “Capitalism and Freedom” has a lot more to offer:
Interpreting politics and economics as two separate entities of unrelated background is a false belief or claim. Every state is being regulated by its internal and foreign policies which affect the economy. These “unconnected” areas are subtly melted into one institution that shapes the economic system in any country. For instance, we can investigate “democratic socialism.”
Here’s the kicker:
Strangely, conservative economic views and procedures – are literally more liberal than the ones you consider free – absent any external or governmental obstruction. Free choice is a tricky term, which is construed as the ability to purchase something without being bothered. A laughable notion, but quite popular back then.
Key Lessons from “Capitalism and Freedom”
1. Reality or fiction
2. Economic liberalism as a road to growth
3. Best buddies – politics and economy
Reality or fiction
Capitalism emphasizes the importance of civil rights for any person regardless of the religion, ethnicity, nationality or status. However, the games being played behind this policy remain vague to this day and open for discussion.
Economic liberalism as a road to growth
The real liberalists, stimulate free discussions, no dumping prices, and fair competition. In fact, freedom all about perception, a decisive moment in world history. According to capitalists, the socialism is an ideology which is driven by the end-result absent worries about the consequences occurring along the road. The totalitarian governments – where all the central power is placed, justifies any outcome if it is for the sake of the country.
Best buddies – politics and economy
It’s delusive to believe that a country of “democratic structure” which has a Soviet socialist system of production can remain totally free in other spheres. The state controls the freedom of speech, but publicly supports the rights of any individual. Through political prosecutions and arrangements, the system is held and preserved. In reality, the bond or link between economics and politics is unbreakable, which discredits all these false claims and delusive freedom.
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“Capitalism and Freedom” Quotes
There is still a tendency to regard any existing government intervention as desirable, to attribute all evils to the market, and to evaluate new proposals for government control in their ideal form, as they might work if run by able,… Click To Tweet A major source of objection to a free economy is that it gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. Click To Tweet There is no law of conservation which forces the growth of new centers of economic strength to be at the expense of existing centers. Click To Tweet The role of government just considered is to do something that the market cannot do for itself, namely, to determine, arbitrate, and enforce the rules of the game. Click To Tweet The power to do good is also the power to do harm; those who control the power today may not tomorrow; and, more important, what one man regards as good, another may regard as harm. Click To Tweet
Our Critical Review
Sometimes, Milton Friedman is hard to follow. Don’t let that stand in your way between you and the most reliable material on Freedom and Economic liberalism. It’s not the most easy-going book because of the terminology, but we believe almost any person would find it quite entertaining and informative.
Emir is the Head of Marketing at 12min. In his spare time, he loves to meditate and play soccer.
