Economic Liberty

In the first chapter of "Capitalism and Freedom" Milton Friedman argues that economic and political liberty are connected. Specifically that economic liberty is necessary for political liberty. Friedman devotes most of the discussion to an analysis of freedom under socialism where socialism is understood as state ownership of the means of production.

His argument also applies to a host of market economists who do not see the connection. In "The End of Laissez faire" Keynes argues that semi-autonomous state agencies are the optimal form of organization. Friedman directly addresses whether such agencies could plausible be expected to remain autonomous.

Friedman's argument also directly addresses John Stuart Mill's claim in On Liberty that "the principle of individual liberty is not involved in the doctrine of Free Trade" (Chapter V pp 166-169. See Library Page ). As Friedman rightly points out, economic freedom is an important freedom in its own right. Second, the freedom that the principle of liberty seeks to protect is not somehow immune or separate from the economic sphere.

To live and believe as I see fit requires I be able to employ resources for my survival, comfort, and even promulgation of my beliefs. In a society where the state owned everything, if I disagree with the state it is no more possible to live my own life than it is to own my own property. Those who disagree with Walmart can shop, and seek employment, elsewhere. Those who disagree with the central committee have no such option.