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Capitalism and Freedom

Capitalism and Freedom - Freedom From Government Bryan Baum...

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Freedom From Government Bryan Baum By increasing the emphasis of private markets and minimizing the role of government in the market, individuals can attain both economic and political freedom. Friedman discusses government’s role in the free market as one that does more to damage society than actually helping it. He asserts instead that government should play the role as, “rule-maker and umpire”(25,) and should deter from getting too involved in the markets. By allowing individuals to act in their own self-interest as if led by “an invisible hand”(The invisible hand refers to the sum of many individuals acting in their own best interest, which often leads to efficient outcomes in the economy) the economy will be better off. Friedman also asserts that the government should interfere with the free market when citizens are benefiting from something that they are not paying for: taxing people for enjoying “neighborhood effects”. Furthermore, government should act as a moderator in the market to prevent coercion, unnecessary monopolies, cartels, and other things that would harm the freedom of the individual. Education plays a significant role in the stimulation of growth in a society. The educating of children, “promotes a stable and democratic society,”(86) which is a neighborhood effect felt by all members of society. This allows government “to require that each child receive a minimum amount of schooling of a specified kind”(86). However, the function of government in schooling is limited and plays a lackluster job in assuring the quality of the schools. To solve this problem Friedman presents the idea of using school vouchers, which would allow the institutions to be run in the free market. Vouchers are effectively cash towards education that allow parents to choose what school they send their child to instead of public schooling being decided solely on residence.
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This would promote competition and allow the parents to choose the best school to send their child to. This would cause schools to act as private enterprises competing against each other all trying to attract more students. The main goal is to base entry into schools on merit and not on socioeconomic background. Intelligent children from lower class homes will now have the opportunity to go the better quality schools. By limiting the role of government schools will be able to flourish in the free market. (Could discuss the argument that inequality might arise because some schools may choose to charge more than the voucher amount so wealthy people are better able to pocket the additional cost). The reform of tax laws is necessary to decrease the power of monopolies, support the growth of businesses, and the continued development of society. Monopolies live free of competition, substitutes, and quality control. The major sources of monopolies are “Technical considerations, direct and indirect governmental assistance, and private
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Capitalism and Freedom - Freedom From Government Bryan Baum...

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