Capitalism and Freedom (1960) - Day 1c

pages xv - xvi, Preface

Book came from lectures given at conference directed by John Van Sickle and Benjamin Rogge, sponsored by the Volker Foundation.

pages 1- 6 Introduction

1. The quote, "Ask not what your country can do for you -- ask what you can do for your country." Either half is bad.
2. The government is a means.
3. There is no greater threat to freedom than the concentration of power.
1. "Even though the men who wield this power initially be of good will and even though they be not corrupted by the power they exercise, the power will both attract and form men of a different stamp."
   
4. Scope of government must be limited. Two broad principles of government
1. Government has two functions:
1. Protect our freedom (from both inside and outside)
1. Preserve law and order
2. Enforce Private Contracts
3. Foster competitive markets
2. Maybe...Enable us to accomplish jointly what we can't solely
1. Doing this is dangerous. If we do it, we must be careful. We should only use this function if voluntary co-operation and private enterprise
2. Government power should be dispersed.
1. Better the state than the federal. Better the local than the state.
1. This sets up almost competing governments
2. Two reasons
   
1. See red type above.
2. Great advances in civilization never came out of centralized gov't.
1. E.g. Columbus wasn't directed by the gov't to find a new trade route.
2. Many achievements are the product of
   
1. Individual genius
2. Strongly held minority views
3. A society that permitted variety and diversity
5. The book's Theme:
   
1. Major: The role of competitive capitalism: The organization of the bulk of economic activity through private enterprise operating in a free market.
2. Minor: The role of government in such a society.
3. First two chapters deal with this on an abstract level (principles)
4. The later chapters apply those principles to a variety of particular problems.
6. A Word About The Word "Liberalism"
   
1. In the 1700 - early 1800's, "liberalism" emphasized freedom and the individual as the ultimate entity in society.
2. In the late 1800's, and especially after 1930 in the U.S., liberalism came to mean "a readiness to rely primarily on the state [coercion] rather than on private voluntary arrangements to achieve objectives regarded as desirable."
1. Welfare and equality replaced freedom.
2. Ol' country liberals recognized freedom as the best way to promote welfare and equality.
3. New liberals see welfare and equality as an alternative to freedom.
1. Any government powerful enough to "make everybody equal" will be too powerful to limit to just doing that.

What is mercantilism? (Friedman says that the new liberals are turning back to that.)

What happened in 1930 that, after that point in the U.S., liberalism came to mean relying on the state as opposed to individual responsibility?

What made leftist ideas popular? (John says the Depression and the New Deal.)

Why should it be government's job to foster competitive markets? What does Friedman mean when he says competitive markets?

What if someone says, the Internet is a major advance that came from gov't?