Capitalism and Freedom


Capitalism and Freedom is a book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society. It sold over 400,000 copies in the first eighteen years and more than half a million since 1962. It has been translated into eighteen languages.
Friedman argues for economic freedom as a precondition for political freedom. He defines "liberal" in European Enlightenment terms, contrasting with an American usage that he believes has been corrupted since the Great Depression. His views are especially popular among American conservatives and libertarians.
The book identifies several places in which a free market can be promoted for both philosophical and practical reasons. Among other concepts, Friedman advocates ending the mandatory licensing of physicians and introducing a system of vouchers for school education.

Context

Capitalism and Freedom was published nearly two decades after World War II, a time when the Great Depression was still in collective memory. Under the Kennedy and preceding Eisenhower administrations, federal expenditures were growing at a quick pace in the areas of national defense, social welfare, and infrastructure. Both major parties, Democratic and Republican, supported increased spending in different ways. This, as well as the New Deal, was supported by most intellectuals with the justification of Keynesian economics. Capitalism and Freedom introduces the idea of how competitive capitalism can help to achieve economic freedom.

Chapter summaries

Influence

The effects of Capitalism and Freedom were great yet varied in the realm of political economics. Some of Friedman's suggestions are being tested and implemented in many places, such as the flat income tax in Estonia and Slovakia, a floating exchange rate which has almost fully replaced the Bretton Woods system, and national school voucher systems in Chile and Sweden, to cite a few prominent examples. However, many other ideas have scarcely been considered, such as the end of licensing, and the abolition of corporate income tax. Though politicians often claim that they are working towards "free trade," an idea the book supports, few American politicians have considered taking his suggestion of phasing out all tariffs in 10 years. Nevertheless, Friedman popularized many ideas previously unknown to most outside economics. This and other works helped Milton Friedman to become a household name. The Times Literary Supplement called it "one of the most influential books published since the war."
Capitalism and Freedom, along with much of Milton Friedman’s writing, has influenced the movement of libertarian and conservative philosophy in America. Milton’s philosophy of economic and individual freedom has pushed similar thinking political parties to emerge, such as the Libertarian Party and the Tea Party.
Capitalism and Freedom made the Intercollegiate Studies Institute's and also was placed tenth on the compiled by National Review. In 2011, the book was placed on Time Magazine's top 100 non-fiction books written in English since 1923.