In Capitalism and Freedom Milton Friedman analyzes the relationship between the economy, society, and the individual. Friedman views economic freedom both as an ideal that is crucial in the effort needed in order to instill and uphold freedom of the political sense. His argument against government control of the economy centers on the understanding that if production is under the control of the government it is likely, if not certainly, impossible for any dissent, conflict, or discussion around the topic of economics to take place within a society. With this conversation being essentially nonexistent, the stagnation among society’s people which generally leads to loss of political freedom is inevitable. He points out that, even if it is the
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He believes that the spending the government is doing has detrimental effects on the economy and is actually making it less stable. On this point, he directly references hard evidence that he has obtained through his own research. This research demonstrated that a rise in government spending resulted in an approximately identical rise in GDP, a complete contradiction of the Keynesian multiplier …show more content…
He begins on the subject of the distribution of income, examining the progressive tax that was introduced. While the tax was specifically engineered in order to make things fairer through redistribution, Friedman observes that no change is occurring for the individuals who require this income because the rich are taking advantage of the loopholes within the tax. He notes that it would be much fairer to have a flat tax with no deductions; he states that this tax could meet the 1962 tax revenues with an only slighter higher rate than that time’s lowest bracket. Moving onward, Friedman disproves the effectiveness of social welfare measures. He admits that they are adopted with the absolute purest of intentions, but unfortunately remarks that they simply do not provide the help they are designed to supply. Social security is exemplified as one of the most unfair systems currently in place. On perhaps the most pertinent issue related to the lower class, Milton Friedman proposes a plan for the alleviation of poverty. He firmly believes in the notion that a negative income tax will fix the issue by giving each individual a guaranteed income, as opposed to the inefficient system in place
He believes that the spending the government is doing has detrimental effects on the economy and is actually making it less stable. On this point, he directly references hard evidence that he has obtained through his own research. This research demonstrated that a rise in government spending resulted in an approximately identical rise in GDP, a complete contradiction of the Keynesian multiplier …show more content…
He begins on the subject of the distribution of income, examining the progressive tax that was introduced. While the tax was specifically engineered in order to make things fairer through redistribution, Friedman observes that no change is occurring for the individuals who require this income because the rich are taking advantage of the loopholes within the tax. He notes that it would be much fairer to have a flat tax with no deductions; he states that this tax could meet the 1962 tax revenues with an only slighter higher rate than that time’s lowest bracket. Moving onward, Friedman disproves the effectiveness of social welfare measures. He admits that they are adopted with the absolute purest of intentions, but unfortunately remarks that they simply do not provide the help they are designed to supply. Social security is exemplified as one of the most unfair systems currently in place. On perhaps the most pertinent issue related to the lower class, Milton Friedman proposes a plan for the alleviation of poverty. He firmly believes in the notion that a negative income tax will fix the issue by giving each individual a guaranteed income, as opposed to the inefficient system in place