Summary of Capitalism and Freedom

Capitalism and Freedom is a landmark book by Nobel Prize–winning economist Milton Friedman, in which he argues for economic freedom as a precondition for political freedom. Friedman begins by outlining a negative-sum game, in which freedom is limited by government control, and shows how economic and political freedoms are often inversely associated. He then details his proposal for a liberalized economic system designed to maximize individual liberty as well as economic growth. Friedman then discusses the effects of economic freedom on the government, stating that it can lead to improved public services, reduced taxes, and even better functioning of the democratic process. He also makes the case for a more rapid adoption of radical new ideas and technologies, which he claimed would bring about greater prosperity and political stability. Finally, Friedman explains the relationship between capitalism and liberty, stating that, although it does not guarantee freedom, it is necessary for it.