Capitalism and Freedom (Milton Friedman)

If this book taught me nothing else, it is that blind speculation in the subject of economics and politics is tantamount to discussing software engineering without knowing any programming languages! I originally decided to read this book by Nobel Prize winning Dr. Milton Friedman because I was frustrated at not understanding monetary quantity theory, exchange rates, and other economic functions. In my youthful naïveté I had come to side with right-wing demagogues with regards to their conclusions surrounding many of these subjects, and expected this book to fall in line with those ideas. Instead, what I found was an unusually consistent political ideology which is neither left nor right, but "laissez-faire" liberal.

The chief concept behind free-market liberalism is the phenomenon whereby if people simply engage in voluntary economic exchange with each other and act entirely in their own self interest they will invariably be forwarding the greater interests of society. Naturally, it follows that when government exercises power through redistribution of income, regulation, or fiscal policy, it limits our freedom to engage in voluntary commerce and incurs a penalty on society. The first chapter explains the relationship between economic, political and personal freedom, and how they're all related. The next four chapters give the reader a basic understanding of effects concerning monetary policy, fiscal policy, international commerce, and finance. Chapters six to twelve are the "juicy" ones. They tackle issues where government today plays a major role, such as in occupational licensure, antitrust regulation, and welfare. The arguments in this book for reducing the role of government in society are laid out with such ethical and logical consistency that there is no way I can pay them justice in a short review. Suffice to say that in Dr. Friedman's opinion, legitimate uses of government are limited to maintaining a military, law enforcement, a judicial system, and a monetary system. Any functions beyond those should be scrutinized very carefully to ensure whether or not they have any merit.

This book has completely changed my outlook on politics, economics and freedom. I can't begin to say how impressed I am with Dr. Friedman. The word "freedom" certainly has taken on a new meaning for me.

"Concentrated power is not rendered harmless by the  good intentions of those who create it"

~ Dr. Milton Friedman (1912 - 2006)