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Milton Friedman Capitalism And Freedom Analysis

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Milton Friedman in his book, Capitalism and Freedom, analysis the relationship between two very important aspects of a society, capitalism and freedom. Throughout the book Friedman talks about complex issues that stem from from capitalism and freedom. In chapter seven, Friedman focuses the discussion of discrimination and how that plays a role in society as a whole. In the beginning of the chapter, Friedman explains the difference between a lack of discrimination in the workplace and discrimination in the workplace. Friedman blames discrimination in the workplace on the government, and specifies the laws that are put into place that had a major effect the future of all American citizens. As Friedman starts to speculate certain laws put into…show more content…
Friedman ties this back to capitalism, in respect to racism and the demand for labor. In a competitive market businesses must hire workers, as the demand for workers increase, racism in the workplace dwindles. Capitalism causes free markets to emerge within a society, competition is the result of free markets. “He will generally have to pay a higher price for what he buys or a lower return for his work” (Friedman 110). What Friedman is saying is that individuals and businesses limit themselves by discriminating against specific groups of people. The ones who are able to value solely for their worker for their work and not care about skin color or religion. Thus, having a more diverse labor force would stimulate a market because there are more workers who can potentially provide a higher quality of labor. The fair employment practice commissions were created as a result of discrimination in the workplace. However, according to Friedman they took away the right of the individual to voluntarily agree to a contract. It was left to the states the power to have any contract up for approval or disapproval. If you imagine a grocery store in a free market is located in a particularly racist area towards African Americans. “Let us suppose that as a result of the law the store is required to hire him. The effect of this action will be to reduce the business done by this…show more content…
In this case discrimination has a effect of the labor force and depending on the color of one's skin, which can create problems as Friedman points out. As a result there is a long history of discrimination in the workplace. The problem is that the employer was not given a choice with whom they hired. Friedman's main point is that people must have a choice in who they hire for the better of the business. What this case is more of an attempt of integration, this decision not only upsets the consumers but you make the employee a victim. Another example of this happens shortly after the repeal of Jim Crow laws, and new laws promoting integration had a negative effect. When African Americans got placed into predominantly Caucasian school, the rest of the students refused to attend school. They were so set in their beliefs that it turned out to be more of a problem and the African American children ended up suffering the most because of it. It is admirable by the government to attempt to promote integration, however it can lead to more problems as a result as Friedman points
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