Economist Milton Friedman’s View re: Government Action and Economic Liberty (Capitalism and Freedom, 2002)

11 01 2013

In Milton Friedman’s book Capitalism and Freedom (University of Chicago Press, 2002), he addresses the question of ….”How can we benefit from the promise of government while avoiding the threat to freedom?” (pages 2-3)

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East Fork River, Denali National Park, Alaska, USA

 

Two broad principles embodied in our Constitution give an answer that has preserved our freedom so far, though they have been violated repeatedly in practice while proclaimed in precept.”

First, the scope of government must be limited. Its major function must be to protect our freedom both from the enemies outside our gates and from our fellow-citizens: to preserve law and order, to enforce private contracts, to foster competitive markets.  Beyond this major function, government may enable us at times to accomplish jointly what we would find it more difficult or expensive to accomplish severally.  However, any such use of government is fraught with danger.  We should not and cannot avoid using government in this way.  But there should be a clear and large balance of advantages before we do. By relying primarily on voluntary co-operation and private enterprise, in both economic and other activities, we can insure that the private sector is a check on the powers of the governmental sector and an effective protection of freedom of speech, of religion, and of thought.”

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The second broad principle is that government must be dispersed.  If government is to exercise power, better in the county than in the state, better in the state than in Washington. If I do not like what my local community does, be it in sewage disposal, or zoning, or schools, I can move to another local community, and though few may take this step, the mere possibility acts as a check.  If I do not like what my state does, I can move to another.  If I do not like what Washington imposes, I have few alternative in this world of jealous nations. ”

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The very difficulty of avoiding the enactments of the federal government is of course the great attraction  of centralization to many of its proponents.  It will enable them more effectively, they believe, to legislate programs that – as they see it – are in the interest of the public, whether it be the transfer of income from the rich to the poor or from private to governmental purposes.  The are in the sense right.  But this coin has two sides.  The power to do good is also the power to do harm; those who control the power today may not tomorrow; and more important, what one man regards as good, another may regard as harm. The great tragedy of the drive to centralization, as of the drive to extend the scope of government in general, is that it is mostly led by men of good will who will be the first to rue its consequences.”

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