Milton Friedman's Capitalism and Freedom: Questioning Socialism

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Capitalism and Freedom by Milton Friedman battles against the effects of capitalism and to justify the government intervention in the market. The link between democracy and capitalism, or governmental and economic freedom. Friedman asserts his argument around the relation between the economic freedom and governmental freedom, the role of administration in a free society, monetary policy, fiscal policy, and major rules that can be improve through capitalism. To Friedman, the only responsibility of a person in a capitalist society is to earn as much as his thoughts and energies will allow and in doing so improve the lot of all. He based the idea of capitalism out of economic reasoning and individual perspective by explaining the key policy issues perplexing our leaders, discusses each of the alternatives, and providing the suggested solution to his support his argument. Above all that, Friedman utilizes an arsenal of capitalist reasoning to highlight the fallacious reasoning entailed in any involvement of government outside of the role of being the enforcer of the rules in controlling aspects of the market that could have been used to spur economic growth and more opportunity by the invisible hand of the free market system.

Although, Friedman targets a wide variety of audiences to agree with his arguments campaigning the advantages of capitalism and disadvantages of socialism, socialism proven it’s effectiveness and influences not just in the past, but also today and in the future. In addition, socialism can produce a great innovation in all fields of human activity than capitalism, socialism can give more freedom than capitalism, and socialism is a better solution to our economic problems than capitalism. The system taught the people since then that reliance to the government and the state can provide freedom, and giving more freedom in general than capitalism. First of all, most points in the book pertains to the government intervention that set it’s primary agenda about the role of the government as not being worthy of the label liberalism. Friedman asserts these things by the example of the society on the support of the institution of the government but socialism is not all about government and state possession. It does not signify a closed primary election system without a self-governing rights. These circumstances are the very opposite of socialism.

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As Daniel De Leon, an American socialist asserts that “is that social system under which the necessaries of production are owned, controlled and administered by the people, for the people, and under which, accordingly, the cause of political and economic despotism having been abolished, class rule is at end. That is socialism, nothing short of that” (De Leon). Socialism will be a community in which the necessities to make a living, labor and the freedom to choose between right and wrong—the manufacturing, services and natural resources are respectively possessed by the society, and in which the democratic masses of the particular individuals within the industries and assistance is the government. Socialism means that government of the freedom, for the mankind and by the race will transform a reality for the first time and this is what the ideal freedom is everyone dreaming about. In simplest term, capitalism erupts a competition between individuals. For example, in D.C, Walmart offered 800 jobs for the people and 24,000 workers shoot their shot.

That means 23,200 people were rejected and lost the competitiveness for that certain jobs. If someone chooses to proceed to a university, they’re competing to be acknowledged. If someone chooses to acquire an apartment, they’re competing to be recognized, and if someone don’t possesses the wealth, they can’t compete and they lose the race before they even started. This simply eliminates the competition as the basis of survival. According to Friedman, he recognize the necessity for some measure of government activity, he asserts that “Our principles offer no hard and fast line how far it is appropriate to use government to accomplish jointly what it is difficult or impossible for us to accomplish separately through strictly voluntary exchange (Friedman 34). In addition, he concludes that: other rules of the economic game, adjudicated disputes about the interpretation of the rules, enforced contracts, promoted competition, provided a monetary framework, engaged in activities to counter technical monopolies and to overcome neighborhood effects widely regarded as sufficiently important to justify government intervention, and which supplemented private charity and the private family in protecting the irresponsible, whether madman or child - such a government would clearly have important functions to perform. (Friedman 34) These are only example of Friedman’s thinking of agreeing to the importance of the role of the government in the society. This can connect the socialism can put an end to racist government policies.

Racism, like discrimination and stereotyping, is an additional means by which the reigning class separates the working class. Socialism campaigns the unity among individuals with the same interest, a method for all oppressed and marginalized minority groups in the community to assist each other and battle for something better, because it is the identical system that oppress us all. Socialism can be categorized to be a better and effective solution to our economic problems than Capitalism. First of all, economic problems is the insufficient or short amount of resources in the limited and bounded supply to meet the expectations of the wants and needs of the people in the society. People have the profound understanding why economy is very important. Economy is a system constructed by all those organization and establishment like banks, offices, schools, hospitals, factories, and everything that gives a job to the people and supply them with a living. Moreover, this is where the government plays an important role in implementing the peace and order in the society. The government is responsible to plan, control and manage all the crucial economic movements to resolve the primary problems when it comes to economics. Contrary to the assertion of Friedman about the spending of the government that do not normally lead to economic development and ballooning.

Also spending turns to be a responsive and precise counterbalance to uncertainty in a country’s economy. But There are two ways that socialism can be judged to be the solution to our economic problemsd denying the assertion of Friedman. First, under a socialistic economy, every institution of the government desires to successfully meet social fairness throughout its actions. Every economic resource happen to be possessed by the government. Citizens are employed for fixed payment which are controlled by the administration as per job productivity. The income obtained from labor or services dictates the whole demand in an economy and this aids the administration in evaluating the demand of merchandise and services by unassociated income groups. Second, according to Will Kenton a writer and editor, explains that the central planning authority or central planning “is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses. A centrally planned economy controls what is produced and the distribution and use of resources (Kenton). Apart from this, the allocation of resources is constructed in mass quantity for the particular merchandise which are necessary for the country.

Furthermore, the state’s primary intention consists of growth, equality, and price stability. The administration executes fiscal policies such as tax policy, financial policy, public debt policy or policy on deficit financing to accomplish their purpose. Besides, centralized planning are the ones who select and determines the system of production or production techniques. This centralized planning determines if job intensive skill or city intensive skill is to utilized for the production. While determining the suitable method, communal and economic states of the economy are carrying into consideration. A long-term plans for the country that ensures the future of the economy for the benefit of the society. This is experience is proven by the U.S.S.R known as the Union of Soviet Socialist Republics and other socialist countries.

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Milton Friedman’s Capitalism and Freedom: Questioning Socialism. (2020, September 28). WritingBros. Retrieved June 25, 2024, from https://writingbros.com/essay-examples/milton-friedmans-capitalism-and-freedom-questioning-socialism/
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Milton Friedman’s Capitalism and Freedom: Questioning Socialism. [online]. Available at: <https://writingbros.com/essay-examples/milton-friedmans-capitalism-and-freedom-questioning-socialism/> [Accessed 25 Jun. 2024].
Milton Friedman’s Capitalism and Freedom: Questioning Socialism [Internet]. WritingBros. 2020 Sept 28 [cited 2024 Jun 25]. Available from: https://writingbros.com/essay-examples/milton-friedmans-capitalism-and-freedom-questioning-socialism/
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