Saturday, January 14, 2017

What does Milton Freidman see as the role of government? Be specific, and give examples of how the needs of a complex society (such as healthcare, environmental quality, recreation facilities, etc.) can be met given Friedman’s view of government and the role of markets.

Milton Friedman had a very conservative view of government and made some strong points in regards to governmental limitation. He believed that a smaller government was better because its intervention prevents a free capitalist economy from thriving. Under economic principles, a free market will fall into its own equilibrium and regulation. He believed that a larger government would hinder economic growth by overburdening businesses with excessive regulation. Beyond this, he also believed that a governmental regulatory board would naturally fall prey to the businesses it polices and would instead cater to their needs as opposed to regulate them for better. This was on full display after FDR’s New Deal spending and government programs pushed the national economy to its second worst recession ever, not even ten years after the Depression, which was only cured by the industrialization that was necessary in World War II.


Friedman's view on the role of government is classical liberalism, which means, in short, that he thought the role of of government was to act in the least intrusive way possible. Friedman was an economist, and he was especially interested in the government's role in economic activity. Friedman decried modern liberalism, associated with the New Deal and the economic theory of John Maynard Keynes, that posited an important role for the government in managing the economy. He was first and foremost a believer in the ability of free markets to most efficiently allocate resources and provide services. He urged governments to repeal regulations, to exercise a very hands-off monetary policy, and to curb spending on government programs.
Friedman believed that the goals of regulation and government programs were often undercut by the government itself. In other words, well-intentioned efforts by the government often had negative unintended consequences. He was opposed to the Environmental Protection Agency (EPA), for example, because it was an example of what he called "regulatory capture": it was controlled, he believed, by the very industries it was supposed to regulate.
As for some of the specific services described in the question, Friedman generally thought these were best provided by private individuals and companies operating with a bare minimum of government intervention. In the instance of healthcare, for example, he argued late in his life that doctors should operate as independent contractors who should be free of licensing concerns by the state and especially the American Medical Association.
https://www.forbes.com/sites/timworstall/2017/06/04/milton-friedman-told-us-the-answer-decades-ago-now-itll-probably-be-ibms-watson/

https://www.investopedia.com/terms/m/milton-friedman.asp


Milton Friedman believed that a small government was better for the economy. He argued that government interference hindered the ability for the free market to operate at its best. His ideology and theories are rooted in the idea that economic freedom is the most important factor in market growth.
Critics argue that his ideas of reduced government would cause public goods and services to fall apart. However, his work suggests that by allowing the market to operate freely, these public services can be taken care of. For instance, healthcare and education would still be provided by demand, but costs would be regulated and balanced by competition. Competition would drive costs down and also cause quality of service to go up as different providers vie for consumers.
Milton Friedman's view of a reduced and minimal government does work in the free market model. The desire for minimal interference is what allows free-markets to thrive, and their competition is what regulates costs and quality. For further information, I would suggest finding a copy of his book, "Capitalism and Freedom".

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