|
| 
 enlarge | Authors: Milton Friedman, Rose Friedman
Publisher: Harvest Books
Category: Book
List Price: $15.00
Buy Used: $6.95
You Save: $8.05 (54%)
New (38) Used (44) Collectible (5) from $6.95
Rating:  79 reviews
Sales Rank: 3399
Media: Paperback
Number Of Items: 1
Pages: 360
Shipping Weight (lbs): 0.8
Dimensions (in): 7.9 x 5.3 x 1
ISBN: 0156334607
Dewey Decimal Number: 330.122
EAN: 9780156334600
ASIN: 0156334607
Publication Date: November 26, 1990
Availability: Usually ships in 1-2 business days
|
| Customer Reviews:
 Still a beauty April 8, 2007
8 out of 10 found this review helpful
Almost 30 years on, Free to Choose still offers valuable insights to the political economics in western democracies. The books main message is that special interests always prevail over general interests. For that reason, we have tariffs on sugar though the majority of the electorate loses from it and we have restricted entry into several occupations like real estate brokers and furniture designing. The story of the development of the Interstate Commerce Commission is particuylarly readable. The ICC was established to protect the consumer (general interest), but quickly turned to protect the producers (special interest). Because special interests always prevail, the governments role in the economy should be restricted.
The Freidmans finish their book with a faint of hope. The final chapter is called The Tide is Turning, and in the foreword written in 1990, they acknowledge that public opinion is greatly different in 1990 than it was in 1975. And economic policy in the US is improved. Marginal tax rates are reduced sharply. Inflation is low and stable. The former communist countries have gone capitalist in scores.
Many of the key messages of the book are now conventional wisdom. Its still worth reading, though. The book offers a very gook look into the intellectual climate of the late 70s. It is one of the central works of one of history's most prominent economists. But foremost, it describes the logic of economics in a very beautiful way.
 A Classic and Totally True but Slightly Incomplete April 2, 2007
12 out of 15 found this review helpful
Milton Friedman was an economics professor at the University of Chicago who won the Nobel Prize in economics for his development of monetary economics. This book briefly explains how an economy works. Yet "Free to Choose" is something more. It's a personal statement that we should embrace free markets and freedom for all of us as individuals to make our own decisions. When we freely choose, the economy is more fair because individuals make their own choices with their own benefits and consequences. The economy is more prosperous and more efficient because the economy competed for customers and the best win out. A controlled economy is a huge mistake. The proper role of government should be that of a referee to ensure fair play - not run the game itself. Friedman's ideas moved the global economy ahead to more efficiency and prosperity, yet his ideas were based on the old ideas of liberty and free markets.
Friedman was an old-school liberal, better known these days as a libertarian. He believed strongly in the power of liberty, as opposed to extreme social orders such as Communism, Nazism, monopolies, mafias, religious theocracies, slavery, segregation, sexism, etc.
Life, Liberty and the Pursuit of Happiness is one of the foundations upon which America had been founded. Yet pure free market economics fell out of favor in the wake of the excesses of the Gilded Age when unregulated capitalism was seen to have an immoral side of exploitation. After the trauma of the Great Depression, capitalism was seen to be unstable and cruel. Theodore Roosevelt used the Bully Pulpit to argue that government should regulate the "malefactors of great wealth." He created the Food and Drug Administration, broke up trusts, regulated railroads, and the American approved. Franklin Roosevelt pursued policies for economic stability and basic security, and Americans elected him president four times. Many people sincerely feared capitalism. This would inadvertently lead to some well-intentioned but very bad economic policies.
Some of the pragmatic reforms of the New Deal were excellent, such as the SEC to require audited financial statements, which leads to more transparent and more efficient markets. Without the SEC we would have many more Enron disasters. The Federal Reserve Open Market committee, a New Deal reform, manages the money supply. New Deal banking legislation requires certain capital reserves and insures deposits to $100,000, which forever ended bank panics. The FHA insured mortgages, which created the 30 year mortgage and brought home ownership to millions of people who used to have to rent or inherit a pile of money. Government regulations adopted later require safe consumer products, such as home appliances and the electrical hardware to bring electricity into our homes. The government regulates pollution. Student loans allow citizens to learn the skills that a prosperous economy needs.
Unfortunately, some of the government experiments in the mid-to-late 20th Century with regulations were mistakes, such as price controls and some welfare programs. Socialism became fashionable to many, especially in Europe, and regulations kept creeping upward. In the United States, this culminated in the late 1960s with the Great Society, although America never became truly socialistic like some European nations. By the 1970s, the global economy was mired in stagflation. Too many bureaucrats were making too many business decisions, hampering market activity and taking away the automatic operation of the economy through prices and consumer choices. Too many politicians were making decisions for purely political gain. Big city politicians have especially been that way for well over a century.
Friedman's weakness in this book is that he does not give due credit to the "referee" government regulations that ensure free and FAIR competition. Friedman is too one-sided in his argument. Indeed, his ideas work today because of pragmatic government reforms of capitalism, such as the New Deal, that did not exist in the past. Friedman emphasizes freedom, as he should for the time period he lived in, but there must be an assumption of at least mild fairness in order for free competition to work.
Remember the books by Charles Dickens on the horrors of the industrial revolution? Remember the disgusting pollution that was so bad in London that the fog was filthy black? Some old buildings in Europe today are still stained black from the filth because they could not be cleaned of the filth. Remember the horrors of industrial child labor and slavery? The most powerful quickly overwhelm the less powerful in a "free" market without protections, and that's how some people want it.
Friedman blames the Federal Reserve for the Great Depression, which is partly true, but the constrictive gold standard was a leading cause as it caused the Fed to tighten and then spread the Depression globally. The countries that abondoned the gold standard the quickest recoverd the quickest. The countries that were not on the gold standard did not experience the Great Depression at all! Hoover refused to abandon the gold standard. FDR abaondoned it quickly, and the contraction ended. Ironically, Friedman's critique says the government was responsible because it did not intervene as it should have earlier.
Also, the financial systems completely collapsed when over 10,000 banks collapsed. The economy would never have recovered without government intervention to save and then reform the financial system, which FDR eventually did. Friedman was not honest about this. He seems so fixated on claiming that government is the problem that he is not truthful about the Great Depression. Friedman also says that the Great Crash did not cause the Great Depression, which is true. But it did make a natural recovery impossible. The financial system fell like a house of cards because there was no regulatory structure to support it. Also, numerous financial scandals rocked the financial system, such as the scandal involving Richard Whitney, formerly the president of the New York Stock Exchange, a member of the board of governors, and arguably the most recognized broker in America.
Friedman also has an overly simplistic solution to inner-city poverty, and he says that schools should receive voicers so inner city parents can be better consumers through more freedom. This would do nothing to solve the real underlying (and maybe unsolvable problems) of cultures of disfunction, broken families, crime, and massive drug use. Ironically, Friedman would legalize drugs for more freedom. Friedman's overall theme of liberty being best is definitely correct, but with some commonsense exceptions please.
Adam Smith, the creator of economics, also said that government must make the investements for the common good that the free market never would make. America has a long history of making these investments, such as canals, roads, bridges, dams, school buildings, parks, aquaducts, etc. Yet Friedman mentions little about this partnership with government. Free markets do not work for everything, although I would argue for 95% of things.
Finally, economic activity is ultimately a social activity. People make money when they organizations with different functions and many people performing those function. It is only because we are socially cooperative that an economy can work. Friedman's emphasis on the individual is correct, but there is more to it. Look at this book as one of a dozen needed views.
Friedman was an optimist. He believed in the power of competition. He was 95% right. True competition will correct most economic problems. I wish more socialist liberals would read this book and learn that less is more. I highly recommend this book.
I also recommend Ronald Reagan's autobiography titled "An American Life," since he was the political figure who rhetorically sold Americans again on free markets. Reagan explains his optimistic views of free markets, his opposition to excessive government controls, his disgust for able-bodied freeloaders on welfare, and his optimistic belief in the goodness of individuals. He also says that he voted four times for Franklin Roosevelt, who said that welfare could destroy the work ethic like "a narcotic" and liquidated the temporary welfare programs designed to aid the country through the Depression once the crisis passed, only to be revived later. Reagan said he was not trying to undo the New Deal; he was trying to unleash the economy from the excesses of 1960s liberalism and excessive economic controls.
As relevant today as when first published March 28, 2007
3 out of 6 found this review helpful
To anyone who believes in libertarianism, this book is as relevant today as it was when first published. The Friedmans wrote the book with a general audience in mind, so it avoids much of the jargon of economists and rather tries to ground their arguments in good straight forward common sense. The Friedmans for most of their careers were bucking against the economic establishment. Yet so much within the book that they advocated, from sound money to decreasing government intervention in the economy, has come to pass. Even their main belief, school choice, is no longer considered a fantasy but is something under serious consideration.
Many people claim that "Free to Choose" converted them to libertarianism (though Milton Friedman always considered himself a "liberal"). I read this book long after I ended up there. But whether you are interested in libertarianism or have long been converted, this book is an essential part of your education.
 Free markets average the opinion of players--they do not solve acute problems. February 16, 2007
7 out of 38 found this review helpful
Milton Friedman may have agreed that free markets are imperfect in their rewards and punishments of owners of property and workers in factories, mines, farming and trade, etc. But he believed corruption in politics and incompetence in bureaucracies condemn government intervention to correct market failures and trends with planned New Deal like reforms and regulations invite unintended negative results more often than not.
Together with Hayek and Von Mises, Friedman thought the markets for goods and services, driven by low cost producers and entrenched money power, would not defeat democratic societies in the long run.
They would remain self-correcting no matter the degree of poverty and pollution observed as people went on about their business ignoring the advice of Keynesian reformers.
Unfortunately for us, these prophets of narrow parliamentary decisions and wide welcome of mindless profit seeking market outcomes, have helped to bring about the hollowing out of America's manufacturing plant, the wreckage of infrastructure and the environment, and the failure to develop conscious planning for individual economic security by elected governments in the public interest.
The additional failures of governments to better develop global security planning and arrangements flow from their domestic failures caused more by adherence to mindless market practice and avoidance of a new and better new deal than by congenital human stupidity.
There were no "Neo-Keynesians" before Uncle Milton! February 15, 2007
5 out of 7 found this review helpful
Pure intelligence.
Most articulate defense of free markets, individual liberty, unfettered entrepreneurialism, and "The American Way" that I have ever encountered.
Reagan may have been the great missionary of free markets and deregulation, but Friedman was undoubtedly the high priest. The greatest testament to the prescience of this book is that most of Milton's ideas have generally become conventional wisdom in the past quarter century.
The past 25 years have been an unquestionable vindication for Milton's theses- the US has experienced unparalled growth and low inflation due to pruning of Governnment bureaucracies and disciplined monetary policy, respectively. This economic "utopia" should come as no surprise; Friedman presents a plethora of anecdotal and empirical evidence for the problems that inevitably arise absent favorable regulatory and monetary conditions.
I wish someone had given me this book in high school while I was being inundated with neoliberal nonsense: "uneven distribution of wealth" and a "market failure" caused the depression, rather than lousy monetary policy. Friedman demonstrates that the MARKET had historically provided its own liquidity (e.g., during the Panic of 1907), and that subsequent to outsourcing this function to the Fed, the government dropped the ball in the early '30s by tightening the money supply. Alternatively, Fed Chairman Arthur F. Burns (under pressure from Nixon and others), pursued monetary policy that was far too easy in the 1970s, causing double digit inflation. Thank goodness we have had a succession of competent Fed Chairmen since 1979 (Volcker, Greenspan, and Bernanke) committed to keeping inflation in check.
Friedman also examines the effects of negative externalities (i.e., pollution) and presents a market-oriented approach to managing them, namely emissions trading. (want to feasibly address global warming?)
The main objections to Friedman's theses may arise from those who believe that the global economy is too unfair to American workers. Well, I have news for you- if you're looking for a panacea of lifetime job security and a static competitive environment, you're on the wrong planet. Sorry, there is no "conspiracy" or covert "war on the middle class", it's simply global competition. Your vote is not going to change the inexorable integration of world markets. Get over it.
The real challenge for American workers is how to (cost effectively) equip ourselves to compete in a global 21st century economy. Let's not hoist the flag of protectionism and promote class warfare. Instead, let's place some stock in ourselves and practice personal accountability. Friedman's suggestions for improving the quality of our schools is a good place to start.
I also highly recommend Peter Bernstein's "The Power of Gold" for a good overview of world monetary history.
|
|
|
The Outpost Network | |
