Milton Friedman and FreeMarket Capitalism
Milton Friedman and Free-Market Capitalism Milton Friedman is known worldwide for his belief in defending free-market capitalism and his faith that it can proficiently and impartially distribute wealth throughout a nation. Most of Friedman's peers are not able to put that same amount of confidence in the ability of the market as he. Friedman has suspicions of government interference in the business of a nation's economy. These suspicions are based on his belief in a limited government and that a capitalist economy free of government interference would provide the best choices for a consumer. Instead of being so involved in the market, he believes that the government has a responsibility to keep a high standard of living through certain functions like defense, education, and public utilities and set certain laws regarding economic policy in order to keep in check the "game" of economics. (Friedman 25) Friedman suggests that the government pass "a legislated rule instructing the monetary authority to achieve a specified rate of growth in the stock of money." (Friedman 54) Besides serving this purpose, Friedman believes the government's interference is detrimental. Friedman's Suspicions of Government Interference
Friedman wanted this too but to a lesser degree. "(Friedman 29) In the past, national employment rate and economic growth statistics have provided sufficient rationalization for the government's expanding role in economic affairs. (Bowles 13)Bowles says that when unregulated, certain markets tend to lose control and collapse, "Policy response to a market failure depends critically on the extent to which the relevant governmental agencies may be relied on to intervene. Radical economists believe in more governmental influence than institutional, and are very concerned with distribution fights between workers and capitalists than most economists. Governmental agencies such as the US Postal Service and National Park Service are nothing more than monopolies. Bowles believes that the government and the economy are irrevocably intertwined. (Colander 158) Radicals believe that it is human nature to want to change for the better of all mankind, while institutional economists believe that individuals are fundamentally selfish and greedy. " (Friedman 28) Monopolies upset the balance of an effective economy. One such federal program that, in Friedman's opinion, has brought about the advancement of monopoly is the Interstate Commerce Commission (ICC). Different Views of Economists There are two main types of economists, the Neoclassical and Keynesian. Friedman's solution is to end licensure practices and monopolies. Friedman argues that through federal programs, the government has initiated the establishment of monopolies. In recent years it has protected the railroad industry from truck companies and other transport means. Smith also believed that the government was supposed to promote well-being not to sustain or accelerate economic growth.
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Acceptance Essays
