Socialism vs. Capitalism

As I read this chapter my thoughts kept coming to an end. Every word I agreed with and the more I read, the more I agreed. Why is this? The first chapter in Free to Choose gives a brief summary of a few of the author's reasons why capitalism/free market works and socialism does not. Again, I agree, agree, agree! Why do I agree though? I have obviously grew up in a society that for the most part applauds the merit's of capitalism and is looked on by most of the world as the "land of opportunity" regarding economics. I went to a university that was very politically conservative and very free market in its teaching. I obviously read those who confer with my ideas, and my ideas line up with those I read. But what if it wasn't so? What if I grew up under communism. What if the world I lived in was socialist, or my school taught Marx over Friedman? As far as economic philosophy is concerned, I had to ask myself, "Am I a product of my environment or is this teaching truly the best?"

I think I have come to a conclusion. Especially over the last 100 years, but over all of history we have seen that markets that are able to operate freely have yielded the best return to it's citizens. Unfortunately we have never (to my knowledge) ever seen a true, in every sense of the phrase free market. Until we do, I will have to hold my opinion close, but my thought is this, men are wicked enough to need regulation. Friedman address this issue and states that government should be used only to the extent that it is beneficial for all (or at least nearly all.) This is obvious, but it does in a sense violate the idea of a true free market. In a true free market I there would be no laws or regulations. Please correct me if I'm wrong. The need for such things is obvious for a society to operate effectively or else businesses would be impossible to run without risk of bandits over running profits.

Needless to say I've rambled on long enough.

Chapter 1: The power of the market

Friedman begins his work by outlining what I predict we will see are his most important points. First of all, we can best cooperate by engaging in voluntary exchange. As long as we are always exchanging something we find of lesser personal value for something of greater personal value we are making the world a better place. Secondly, prices are countlessly valuable because they, transmit information nearly perfectly. Lastly government should stay out of this equation as much as possible because they disrupt the flow of the machine that is the free market.

Free To Choose

This is where we will host our discussion of the reading of Free to Chose by Milton & Rose Friedman. We are doing this to minimize overloading inboxes and better structure discussion. If you have a comment to post regarding a particular chapter or thought, please feel free to post. I'll try and organize the posts by chapter.

Enjoy the reading and I look forward to reading your thoughts.

Management