Milton Friedman's The Free Market Theory

The United States is known for having a free-enterprise economy where a business can be conducted freely without government involved. In free-enterprise economies, goods and services are traded openly and are produced depending on the demand. People who support this type of economy believe it motivates businesses to make money and welcome new ideas. An important part of the economy is to have full employment and low inflation.

The bizarre economy that we live in has affected us in many ways than our simple mind can fathom. After World War II there was massive push in innovation. Human were gifted with inventions like the Airplane, color T.V., polyvinyl cups, and precooked dinners. Nevertheless, these “gifts” came at an enormous cost. That cost was pushed onto the environment and people living in that environment. “The Market Economy” by Marge Piercy illustrates the movement in American aimed at bring attention to a global problem as well as an effort to save the planet along with the people living on it.

He attacks Friedman selective choice of legal realities that help prove his stance and discarding of those that do otherwise as mere “legal fictions”. In that, Denning disputes that Friedman rests his arguments on legal realities such as the law of agency, and dismisses another legal reality – the corporation – for the sake of illustrating how the corporation’s money belongs to its stockholders, customers, and employees but not the real legal owner – the organisation itself. Instead of providing a balanced argument on the legal definitions of terms “corporations” and “agency”, Denning’s stance is mainly concerned with how Friedman conveniently chooses legal facts that only provide backing to his conclusions, instead of tackling these core terms to help support his own argument.

The current issues that have been created by the market have trapped our political system in a never-ending cycle that has no solution but remains salient. There is constant argument as to the right way to handle the market, the appropriate regulatory measures, and what steps should be taken to protect those that fail to be competitive in the market. As the ideological spectrum splits on the issue and refuses to come to a meaningful compromise, it gets trapped in the policy cycle and in turn traps the cycle. Other issues fail to be handled as officials drag the market into every issue area and forum as a tool to direct and control the discussion. Charles Lindblom sees this as an issue that any society that allows the market to control

In the film “Capitalism Hits the Fan” economist Richard Wolf explains the historical framework of the economic crisis as a crisis of overproduction. Wolff states the Crisis of 2008 was caused by overproduction and stagnant wages that spurred a series of booms and bust that are not temporary.

How can we best understand Milton Friedman’s objection that only persons, not businesses (i.e., corporations), have responsibilities?

Societies are constantly evolving and reinventing themselves in order to keep up with the demands of the governed. Contesting ideas about what would improve a given society versus harm it often clash and lead to new debates, expanding the realm of issues that must be addressed. Therefore, what constitutes a good society is largely a moral question; for example, while some may value income equality as being one of the hallmarks of a fair and just society, others may view competition as a necessary means to drive up productivity and make sure the most capable individuals have the greatest chance at success. However, certain essential values, including the ability for people to oppose the government, the presence of order, or the ability for

Before the introduction of Keynesian economics and Milton Friedman’s Monetarism theory, there was classical economics. These economists believed in self-adjusting market mechanisms, however with that the market needs perfect competition. Wages and prices in the market must be flexible. These economists believe that supply and demand pulls would always help the economy reach full employment.

What is a free market really? By definition a “Free market” is a summary term for an array of exchanges that take place in society” (Econlib). However there is more to it than that, in fact there is much to be learned and understood from a free market. A free market is a place (physical or not) where a person(s) in a community are able to go and exchange goods based on supply and demand. A truly free market has no barriers to entrance or to exit, and many goods and services. In any case people within the market are able to distribute goods freely based on free choice in trade for whatever they have agreed upon whether that is government notary(s) or other goods or services. In this type of market there is a huge emphasis on property

Economy is determined by the worth and prosperity of the land. It is recognized all over the world by the welfare of people, and is arguably, one of the most critical subjects a government can control. One person who understands this better than anyone is Author and Nobel Prize winner Milton Friedman. He was born in Brooklyn, New York on July 31st, 1912 to two lower class Jewish immigrants (Nobel). With his free market approach to economy, he made influential arguments that inflation or government regulations could have caused or worsened the Great Depression (Milton 2008). He also argued with Keynesian theorists that economic success does not involve government intervention, but rather, it comes from the markets which can eventually help the

The American economist, Milton Friedman supported the free markets in short of government guideline influence, inevitable that most of the government will privatize most of its state corporations. Global Public Square (2011). The management when brought before the house committee, they confessed that the government did not interfere with the running of the corporation. The Ethical Structure that could have assisted the corporation remained in the influences of the government officials (Anderson, 2012). The government did not have to link the specific subdivision to start the corporations, in this like a project entrepreneurial that only has a role in the substances of energy to create ethical framework.

After analyzing Thomas Friedman’s theories, the arguments presented by critics, and the examples of violence since the late 1990s, it is clear that the later works of Friedman still hold validity in today’s global landscape. These works were an altered version of Friedman’s previous reports, but offered a more realistic approach to the subject; a change that was widely noticed and appreciated. While today theories like the Dell Theory are accepted by the community, the same could not be said about Friedman’s early works, such as the Golden Arches Theory. The optimistic ideology displayed in Friedman’s earlier works has lost its place in society. As the number of global conflicts increased, Friedman’s work lost more of its validity.

A major factor of the 2012 Presidential Election was the supposed "War on Women" being waged by the Republican Party. A major piece of the "War" was the gender pay gap, which is the difference between male and female earning. President Obama and many other leading Democrats brought up the statistic that female workers only make seventy seven cents on the dollar. When I heard that I thought that could not possibly be true, but when I looked into it I found out it was true. I asked my father if he knew anything about the gap and he told me to read Free to Choose by Milton Friedman. His logical explanation of the gender gap was tantalizing. Friedman's rationale was that it is extremely unlikely that there is a countrywide conspiracy to hold back

He was born on July 31, 1912 in Brooklyn, New York. He was youngest out of siblings. His parents, Jeno Friedman and Sara Landau, were Jewish Immigrants that worked as merchants. When he was a year old, his family and him moved to New Jersey. Since his mom only ran a dry goods store and his father didn’t have a successful job, they were not wealthy, but they had enough to eat and survive, and most of all they had a united family where they found comfort and love. (Friedman)

The belief of Milton Friedman that relates to the concept that business only has one social responsibility which is to make a profit, I do not agree with this statement. Even though I do not believe in this statement, it is still essentially important for businesses to make a profit. This is a critical part of the business model for if business did not make a profit, they would not exist. The part of the statement that I disagree with is the part that deals with “business has only one social responsibility”. To go into business whether a sole proprietorship or a corporation, there must be a reason as to why. Often people go into business to make a living or to provide for themselves or their family, but most often the underlining reason is not to