Capitalism and Freedom

Milton Friedman

Expert

This stands as one of the most influential and enduring works of 20th-century economic and political thought. First published in 1962 by the University of Chicago Press, this concise yet powerful book articulates a compelling case for competitive capitalism as both an essential component of individual liberty and a prerequisite for sustaining political freedom. Written amid the Cold War's ideological clash between Western capitalism and Soviet socialism, and during a period of expanding government intervention in the U.S. At its core, the book argues that economic freedom and political freedom are inextricably linked. Friedman asserts that voluntary exchange in free markets disperses power, protects minorities from majority tyranny, and enables individuals to pursue their values without coercion—whereas centralized economic control inevitably erodes personal liberties.

At the heart of the book of the great american economist lies a simple but powerful idea: when individuals are free to make their own economic choices—what to produce, what to buy, where to work—they create a system of cooperation that does not rely on coercion. Friedman argues that capitalism performs two essential roles in a free society. First, it organizes economic activity efficiently by using the price system to allocate resources. Second, and even more importantly, it limits political power by separating economic decision-making from the control of the state. When economic power is decentralized among individuals and businesses, political authorities cannot easily dominate society. This separation acts as a safeguard against tyranny. The book also examines several controversial policy areas in which Friedman challenges conventional thinking. He discusses the role of government in education, monetary policy, professional licensing, welfare programs, and international trade. Rather than advocating the complete absence of government, Friedman proposes a limited but important role for the state: protecting property rights, enforcing contracts, maintaining the rule of law, and ensuring stable monetary institutions. Beyond these essential functions, he warns that government intervention often produces unintended consequences that undermine both efficiency and freedom. Friedman writes in a direct and accessible style, making complex economic arguments understandable for readers without specialized training. At the same time, the book is intellectually rigorous. Its ideas influenced decades of debate about public policy, free markets, and the relationship between economics and democracy. Many reforms around the world—from deregulation to school choice—were inspired in part by the principles Friedman articulated.

Publisher: University of Chicago PressISBN:978-022-6734-79-8Number of pages: 287Year of publication: 2020

Reviews

Milton Friedman’s ideas and arguments, which were groundbreaking in their time, remain relevant for modern-day Ukraine. This applies to the pension system, education, taxation, and other areas of life.

Volodymyr Dubrovskyi, Senior Economist at CASE Ukraine

Milton Friedman’s book "Capitalism and Freedom" is a prime example of the use of sophisticated logic in economic thinking. Friedman effortlessly dismantles Marx’s arguments regarding the exploitation of workers, reflects on economic equality and political freedoms, justifies effective taxation models, and debates the merits of licensing, social housing, and pension schemes. The book will undoubtedly be of use to those interested in the state’s economic policy, leaders of youth organisations and political movements, as well as lecturers and students who not only study economic history but are also working to reform Ukraine’s modern economy. Clarity of thought, rigour of reasoning, elegance of approach, tolerance in judgement, and precision in argumentation – these are the qualities that elevate Friedman’s work to the level of the finest examples of economic thought in the 20th and 21st centuries.

Yevhen Pentsak, PhD, lecturer at the Kyiv-Mohyla Business School

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, economist, journalist, author of “Economics in One Lesson”

Quotes from

Milton Friedman's book "Capitalism and Freedom."

Freedom is a rare and delicate plant. Our minds tell us, and history confirms, that the great threat to freedom is the concentration of power.

In a much quoted passage in his inaugural address, President Kennedy said, 'Ask not what your country can do for you—ask what you can do for your country.' Neither half of the statement expresses a relation between the citizen and his government that is worthy of the ideals of free men in a free society.

A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.

History suggests only that capitalism is a necessary condition for political freedom. Clearly it is not a sufficient condition.

The free man will ask neither what his country can do for him nor what he can do for his country.

Underlying most arguments against the free market is a lack of belief in freedom itself.

Power tends to corrupt, and absolute power corrupts absolutely.

The kind of economic organization that provides economic freedom, namely, competitive capitalism, also promotes political freedom because it separates economic power from political power and in this way enables the one to offset the other.