Wednesday, November 22, 2006

Laissez Faire Capitalism: Political Freedom to Economic Freedom

“In a capitalist society, it costs money to discriminate, and it is very difficult given the impersonal nature of market transactions.”

If there ever was a pithy answer you could give to all those who advocate communism & reservations to counter the apparent discrimination in a free & capitalist economy, Milton Friedman’s above statement would have to be the one!

In the family tree of advocates for a Laissez Faire capitalist economy during the 20th century, Milton Friedman was amongst the most prominent. An heir to the theories of economists like Adam Smith and Ludwig von Mises, Professor Freidman was awarded the Nobel Prize in Economics in 1976, for his achievement in the field of consumption analysis.

From being an advocate of John Maynard Keynes’ theory of a mixed economy during the WW-II years, Professor Friedman changed his views favoring the free market economy in the post war years.

His book “Capitalism and Freedom” originally published in 1962 is recognized as amongst 50 best books of the 20th Century and has had profound influence on the economic policies of nations around the world.

As early as 1955, Professor Friedman in a memorandum to the Indian government, wrote

“The great untapped resource of technical and scientific knowledge available to India for the taking is the economic equivalent of the untapped continent available to the US 150 years ago”

Professor Milton Friedman passed away on November 16th, 2006.


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