Home
/
RELIGION & LIBERTY ONLINE
/
Why Milton Friedman’s Capitalism and Freedom is still relevant today
Why Milton Friedman’s Capitalism and Freedom is still relevant today
Jan 12, 2026 9:45 AM

As we approach what would be Milton Friedman’s 104th birthday this Sunday, July 31st, we should note the enduring significance of his evaluation of the connection between economic and political freedom. In his popular work, Capitalism and Freedom, in a chapter titled “The Relation between Economic Freedom and Political Freedom,” Friedman explains how a society cannot have the latter without the former.

Friedman criticizes the notion that politics and economics can be regarded separately and that bination of political and economic system is possible. He calls the view “a delusion,” holding that there is “an intimate connection between economics and politics.” Though Friedman concedes the possibility of an economically free and politically repressed society, the opposite, he claims, is impossible. Political freedom, both historically and logically, is inseparable from economic freedom.

In a cogent prehensive analysis, Friedman explains that economic freedom is a crucial element of individual freedom in its own right, but is also crucial for supporting political freedom:

Political freedom means the absence of coercion of a man by his fellow men. The fundamental threat to freedom is power to coerce, be it in the hands of a monarch, a dictator, an oligarchy, or a momentary majority…By removing the organization of economic activity from the control of political authority, the market eliminates this source of coercive power. It enables economic strength to be a check to political power rather than a reinforcement.

He further outlines the issues with government control of resources, especially of media, which allows for suppression of unpopular speech. Without simplifying the issue, Friedman exposes the realities inherent in allowing for political control in the economic sphere, from difficulty funding and expressing unpopular speech to direct government discrimination against political dissenters’ freedom of speech or even livelihoods. Preserving real political freedom in a system that gives economic power to the government is, Friedman concludes, virtually impossible.

These principles are no less true today, and, while the United States is relatively economically free, threats to both economic and political freedom are growing. The 2016 Index of Economic Freedom evaluated the United States thus:

The United States remains mired in the ranks of the “mostly free,” the second-tier economic freedom status into which it dropped in 2010. America’s historically vibrant entrepreneurial growth is significantly hampered by intrusive, expensive, and often ineffective government policies in areas ranging from health care to energy to education. Government favoritism toward entrenched interests has hurt innovation and contributed to a lackluster recovery and stagnant e growth.

These concerns over political coercion have already e a reality in the growing bureaucracy. Similar concerns about religious freedom have cropped up in the wake of the passage of the Affordable Care Act and other state healthcare programs. Friedman asserts that “capitalism is a necessary condition for political freedom.” If the trend toward larger government control of economic activity continues, where will it leave political freedom in the United States?

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Arthur Koestler Here and Now
On The Freeman, PowerBlog contributor Bruce Edward Walker marks the 70th anniversary of the publication of Arthur Koestler’s Darkness at Noon and the essay “The Initiates” published a decade later in The God that Failed. As Walker notes, “it’s a convenient opportunity to revisit both works as a reminder of what awaits all democratic societies eager to abandon liberties for the sake of utopian ideologies.” Koestler’s Noon, he says, is where the author is at the height of his powers...
Charles Schwab and Ted Leonsis: ‘We aren’t the problem’
Billionaire Democrat Ted Leonsis wrote a posting titled “Class Warfare – Yuck!” on his blog yesterday, in which he implored the president, to whose campaign he donated the maximum amount: “Hit a reset button ASAP. Rethink how to talk to businesses and sell business leaders on your plan to make America great! Many of us want to be a part of the solution. We aren’t the problem.” Today, Charles Schwab published an opinion piece in the Wall Street Journal, and...
The Need to be a Victim
For some, in our still largely affluent society, there is a deep seated need to be a member of the victim class. The background of your socioeconomic privilege is no obstacle, as they must create a narrative that points to being a victim. While some might aspire to sainthood, others aspire to victimhood. This video and report courtesy of The Blaze sums it up well. It would be unfortunate if charades like this drown out the real instances of injustice...
Religion & Liberty: An Interview with Metropolitan Jonah
Religion & Liberty’s summer issue featuring an interview with Metropolitan Jonah (Orthodox Church in America) is now available online. Metropolitan Jonah talks asceticism and consumerism and says about secularism, “Faith cannot be dismissed as partmentalized influence on either our lives or on society.” Mark Summers, a historian in Virginia, offers a superb analysis of religion during the American Civil War in his focus on the revival in the Confederate Army. 2011 marks the 150th anniversary of America’s bloodiest conflict. With...
Samuel Gregg: Imitate Sweden’s Economic Liberation, Not Her Failed Socialism
Acton’s director of research Samuel Gregg has a piece over at The American Spectator that may surprise big government liberals. (We know you read this blog.) In “Free Market Sweden, Social Democratic America,” he lays out the history of Sweden’s social democracy — its nature and its effects on the country’s economy — and then draws lessons for the United States. The Scandinavian country isn’t quite the pinko nanny state Americans like to look down upon, and we’ve missed their...
The invisible sources of entrepreneurship
Entrepreneurs take risks, they see opportunities that others do not, and they turn those opportunities into businesses. It’s perhaps counterintuitive, but this risk-taking actually requires stable social foundations. Entrepreneurs need to know that ground is solid before they risk a jump. Read More… There is great enthusiasm for entrepreneurship these days. There are social entrepreneurs, intellectual entrepreneurs, educational entrepreneurs and even intra-preneurs (entrepreneurs within their panies). Entrepreneurs like Steve Jobs and Bill Gates are held up as model citizens. Magazines...
VIDEO: Anthony Bradley on ‘Black and Tired’ at The Heritage Foundation
Acton Research Fellow Dr. Anthony Bradley spoke about his book Black and Tired: Essays on Race, Politics, Culture, and International Development at The Heritage Foundation earlier this month, and the video is now online. Dr. Bradley explained just why he called his book “Black and Tired:” The hopes and dreams, aspirations, virtues, institutions, values, principles that created the conditions that put me here today, are being sabotaged and eroded by those who have good intentions, but often do not think...
Roger Scruton: No escaping morality in economics
Roger Scruton has written an excellent piece on the moral basis of free markets;it’s up at MercatorNet. He begins with the Islamic proscriptions of interest charged, insurance, and other trade in unreal things: Of course, an economy without interest, insurance, limited liability or the trade in debts would be a very different thing from the world economy today. It would be slow-moving, restricted, paratively impoverished. But that’s not the point: the economy proposed by the Prophet was not justified on...
Why the Journal of Markets & Morality?
In the latest issue of Religion & Liberty, Acton Institute executive direct Kris Mauren answers the question, “Why does the Acton Institute publish the Journal of Markets & Morality?” For more, check out my interview with Micheal Hickerson of the Emerging Scholars Network. You can support the work of the journal by getting a subscription for yourself or mending a subscription to your library of choice. ...
Top 5 Lessons from the Solyndra Failure
The green tech firm Solyndra secured at $535 million federal loan guarantee in 2009 and was touted as an example of a promising green future. A month ago, pany went bankrupt. Here are the top five lessons we should learn from Solyndra’s collapse. 5. Both sides of the aisle are involved. Republican support of federal “investment” is routine — in fact, the DOE program that made Solyndra’s loan was approved by President Bush. It is true that Solyndra’s original application...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved