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Relationship Between Economic Freedom And Political Freedom Term Paper

Friedman: Economic Freedom and Political Freedom The importance of the concept freedom cannot be understated. Freedom is not a new phenomenon as it has been in existence for a long time. There are various types of freedom, which are often interrelated. Economic freedom is inextricably related to political freedom. For instance, economic freedom is intertwined with political freedom in the sense that leaders (chosen based on political freedoms) may determine economic policies. The concepts presented in Milton Friedman's work titled 'Capitalism and Freedom' show that political freedom is essential for the realization of economic freedom.

Political freedom and economic freedom are intertwined in that both serve as a function of each other. Friedman confirmed the existence of close connections between politics and economics: only defined combinations of economic and political arrangements are feasible. For instance, a socialist society does not guarantee individual freedom (Friedman 8). Political freedom largely constitutes a free society. Political freedom revolves around individual rights such as the right to free connections, the right to free expression, and the right to vote. These rights often enable people to choose who shall be their leaders and how they shall be ruled.

Economic arrangements play a vital role in the advancement of a free society. Friedman posits that economic freedom is an end in itself and an essential means towards the realization of political freedom. He cites numerous cases in which individual rights are curtailed by the government. For instance, an American citizen who is denied the opportunity to practice his own occupation unless he is licensed under numerous state laws is denied his freedoms. In addition, a person willing to exchange some of his merchandise to a Swiss but prevented from doing so by a quota is also denied his economic freedom (Friedman 12).

Economic freedom can be seen as an end to political freedom because economic arrangements are vital because of their effect on the dispersion or concentration. Political freedoms are often intertwined with free markets. Capitalist systems advance economic freedom by propagating individualism. As such, people are free to own...

This is contrary to the communist system, which curtails economic freedom by instituting that all factors of production are owned by the state. Political freedoms can be curtailed by economic conditions in the sense that poor people may not have access to information. According to Friedman, political freedom came into being alongside the development of capitalist institutions and free markets. As such, the capitalist system is a prerequisite condition for political freedom (Friedman 9).
Friedman further posits that individual freedoms are seen as the ultimate goals while judging social arrangements. Freedom in this sense refers to the interrelations among individuals. In addition, economic freedom is interrelated with political freedom in the sense that the existence of a free market or capitalist system does not eliminate the need for government. As such, Friedman posits that the government is vital as a forum for defining the rules of the game in terms of laws, and as an arbiter to interpret and enforce those laws. For instance, the government enacts numerous taxation laws and restrictions on international trade such as quotas. In addition, the government also serves to enforce and interpret those laws using its agencies as it deems fit. Political action thus serves to enforce substantial conformity. The free market, as such, only reduces the range of concerns that must be decided via political means thus minimizing government interference (Friedman 13).

Friedman further cites Bentham and philosophical radicals who argued that political freedom was a means to economic freedom. In this case, political freedom acts as a means to economic freedom in the sense that people's economic freedoms are hampered by leaders. As such, if political reforms gave many people the right to vote, they would vote for a laissez faire government. Indeed, political freedoms may influence economic freedoms. For instance, the election of a democratic government that supports free trade may promote economic freedoms unlike a government that shuns free trade. In addition, additional taxes imposed by a government may serve to hinder people's economic freedoms in the sense that…

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Friedman, Milton. Capitalism and Freedom. Chicago: The University of Chicago Press. 2002.

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