10 What Is To Be Undone? The Economics of Competition and Greed In Capitalism and Freedom (University of Chicago Press, 1964) Nobel Laureate and Dean of conservative economists, Milton Friedman, argued that only capitalism can provide economic freedom, allocate resources efficiently, and motivate people successfully. | 10 What Is To Be Undone The Economics of Competition and Greed In Capitalism and Freedom University of Chicago Press 1964 Nobel Laureate and Dean of conservative economists Milton Friedman argued that only capitalism can provide economic freedom allocate resources efficiently and motivate people successfully. He also argued that capitalism is no less equitable than other kinds of economies and a necessary condition for political freedom. Almost 40 years later neoliberal capitalism stands triumphant over the demise of both of its twentieth-century challengers - communism and social democracy - and its supporters are more confident than ever that laissez faire capitalism is the best economy of all. Since the fall of the wall and eclipse of social democracy have tied the tongues of many former critics of capitalism I respond to Friedman s claims one by one and present the case that free market capitalism is inherently inequitable anti-democratic and inefficient. FREE ENTERPRISE EQUALS ECONOMIC FREEDOM - NOT Friedman says the most important virtue of free enterprise is that it provides economic freedom by which he means the freedom to do whatever one wishes with one s person and property - including the right to contract with others over their use of your person or property. He says economic freedom is important in and of itself but also important because it unleashes people s economic creativity and promotes political freedom. Political economists believe that people should control their economic lives and only when they do so is it possible to tap their full economic potential. We also believe economic democracy promotes political democracy. But we find Friedman s concept of economic freedom inadequate his argument that free enterprise allows people to control their economic lives highly misleading his 242 The Economics of Competition and Greed 243 claim that free enterprise is efficient rather than merely energetic unpersuasive and his conclusion that free .
