Discuss the summary below and include your thoughts, opinions, questions, observ
ID: 1169058 • Letter: D
Question
Discuss the summary below and include your thoughts, opinions, questions, observations, disagreements, etc. relating to the summary. Your answer must be NO LESS than 300 words.
The Relaton Between Economic Freedom and Political Freedom
There is an intimate connection between politics and economics, and different systems of the two can only exist side-by-side in certain pairings. For instance, says Friedman, a society which is (economically) socialist cannot also be (politically) democratic, in the sense of guaranteeing individual freedom." As an economic system, capitalism promotes freedom both directly and indirectly; on one hand market freedoms are their own freedoms, and on the other, they promote broader political freedoms. Capitalist institutions are a primary reason we are currently freer than at almost any other period in history. Trade restrictions are burdensome, harmful to the economy and a dangerous overreach of government. Friedman claims that "intellectuals," a loosely-defined set of academics who judge their "self-defined higher values” above individual freedom, are out of touch with most citizens, who believe that the freedom to do what one wants with their earned income is a paramount personal freedom. Competitive capitalist economies are politically important as a means of separating economic power from political power, checking each other and ensuring political freedom, says Friedman. But, he cautions, "history suggests only that capitalism is a necessary condition for political freedom. Clearly it is not a sufficient condition," for Italy and Spain under fascism and tzarist Russia were not politically free but were dominated economically by free enterprise.
As political and economic freedom expanded in the nineteenth century, by the early twentieth century it had created a backlash against itself. “Welfare rather than freedom became the dominant note in democratic countries,” wrote Friedman, and Western democracies moved towards collectivization. This trend, however, was kept in check by “the limited success of central planning or its outright failure to achieve stated objectives.” Friedman says central planning, taken to its logical conclusion, will always violate personal freedoms. The individual’s freedom–the ultimate value for Libertarians, says Friedman–is not all-encompassing. “Freedom has nothing to say about what an individual does with his freedom,” he writes. That is a question of his own personal political and ethical wrestling. In a complex and interconnected world such as ours, the challenge is to balance individual freedom with the widespread interdependence we now live in. For example, we are dependent on farmers that grow the grains and vegetables we eat, the distributors that bring them to market, and the merchants who take a chance by buying them in the hopes of selling them at a higher price. The solution is the free exchange of goods and services on a competitive free market, so long as neither party is coerced and both have full information. In a free exchange, either parties benefit, or they wouldn’t agree. “The consumer is protected by the seller because of the presence of other sellers with whom he can deal. The seller is protected from coercion by the consumer because of other consumers he can sell to, and the employee is protected from coercion by the employer because of other employers for whom he can work, and so on.”
Explanation / Answer
There is a connection between political system and economic system in any country. One has to mainatin a balance between the two. Its true that freedom should be there in both the systems to grow but i agree with the point that capitalism is not sufficent condition for political freedom. For a country to grow there should be freedom to carry out trade and business. economic bottlenecks and trade restrictions are unhealthy for growth of a country. I agree with the point that welfare is the prime focus in many democratic countries.Countries are focusing on basics like infrastructure growth,i.e. communication of transport, electricity, water etc avaiable to all the citizens. However the manufacturer should get fair price to its cost. In case of farmers who takes all the pain in producing vegetables and other products dont get the appropriate price because of unfair practice of intermidiaries. If the farmer has direct access to ultimate buyers then he can get the right price of his products. there should be open market and free and full exchange of information so that the market will have fair practice of trade without putting anyone in loss.