Quotes from book
Free to Choose

Free to Choose
Milton Friedman

Free to Choose: A Personal Statement is a book and a ten-part television series broadcast on public television by economists Milton and Rose D. Friedman that advocates free market principles. It was primarily a response to an earlier landmark book and television series: The Age of Uncertainty, by the noted economist John Kenneth Galbraith. Milton Friedman won the Nobel Memorial Prize in Economics in 1976.

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“Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", page 13
Context: The key insight of Adam Smith's Wealth of Nations is misleadingly simple: if an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it. Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.

Milton Friedman photo

“Industrial progress, mechanical improvement, all of the great wonders of the modern era have meant little to the wealthy. The rich in ancient Greece would have benefited hardly at all from modern plumbing — running servants replaced running water. Television and radio — the patricians of Rome could enjoy the leading musicians and actors in their home, could have the leading artists as domestic retainers. Ready-to-wear clothing, supermarkets — all these and many other modern developments would have added little to their life. They would have welcomed the improvements in transportation and in medicine, but for the rest, the great achievements of western capitalism have rebounded primarily to the benefit of the ordinary person. These achievements have made available to the masses conveniences and amenities that were previously the exclusive prerogative of the rich and powerful.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 5 “Created Equal”, p. 147

Milton Friedman photo

“The price system works so well, so efficiently, that we are not aware of it most of the time. We never realize how well it functions until it is prevented from functioning, and even then we seldom recognize the source of the trouble.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", p. 14

Milton Friedman photo

“Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those methods of production that are least costly and thereby use available resources for the most highly valued pur poses; third, they determine who gets how much of the product—the distribution of income. These three functions are closely in terrelated.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", p. 14

Milton Friedman photo

“The price system transmits only the important information and only to the people who need to know.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", 15

Milton Friedman photo

“The smaller the unit of government and the more restricted the functions assigned government, the less likely it is that its actions will reflect special interests rather than the general interest.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 10 “The Tide Is Turning”, p. 314

Milton Friedman photo

“A worker is protected from his employer by the existence of other employers for who he can go to work. An employer is protected from exploitation by his employees by the existence of other workers whom he can hire. The consumer is protected from exploitation by a given seller by the existence of other sellers from whom he can buy.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 8 "Who Protects the Workers?", p. 246

Milton Friedman photo

“The threat to public schools arises from their defects, not their accomplishments. In small, closely knit communities where public schools, particularly elementary schools, are now reasonably satisfactory, not even the most comprehensive voucher plan would have much effect. The public schools would remain dominant, perhaps somewhat improved by the threat of potential competition. But elsewhere, and particularly in the urban slums where the public schools are doing such a poor job, most parents would undoubtedly try to send their children to nonpublic schools.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 6 “What’s Wrong with Our Schools”, p. 170

Milton Friedman photo

“A society that puts equality—in the sense of equality of outcome—ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests. On the other hand, a society that puts freedom first will, as a happy by-product, end up with both greater freedom and greater equality.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 5 “Created Equal”, p. 148

Milton Friedman photo

“In the past century a myth has grown up that free market capitalism—equality of opportunity as we have interpreted that term—increases such inequalities, that it is a system under which the rich exploit the poor. Nothing could be further from the truth. Wherever the free market has been permitted to operate, wherever anything approaching equality of opportunity has existed, the ordinary man has been able to attain levels of living never dreamed of before. Nowhere is the gap between rich and poor wider, nowhere are the rich richer and the poor poorer, than in those societies that do not permit the free market to operate.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 5 “Created Equal”, p. 146

Milton Friedman photo

“As these remarks indicate, the Social Security program involves a transfer from the young to the old. To some extent such a transfer has occurred throughout history—the young supporting their parents, or other relatives, in old age. Indeed, in many poor countries with high infant death rates, like India, the desire to assure oneself of progeny who can provide support in old age is a major reason for high birth rates and large families. The difference between Social Security and earlier arrangements is that Social Security is compulsory and impersonal—earlier arrangements were voluntary and personal. Moral responsibility is an individual matter, not a social matter. Children helped their parents out of love or duty. They now contribute to the support of someone else’s parents out of compulsion and fear. The earlier transfers strengthened the bonds of the family; the compulsory transfers weaken them.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 4 “Cradle to Grave”, p. 106

Milton Friedman photo

“The supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number—for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs—jobs that will mean more goods and services to consume.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 2 “The Tyranny of Controls”, pp. 40-41

Milton Friedman photo

“When everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union — like public housing in the United States — look decrepit within a year or two of their construction.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 “The Power of the Market”, p. 24

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“The combination of economic and political power in the same hands is a sure recipe for tyranny.”

Milton Friedman book Free to Choose

“Introduction”, p. 3
Free to Choose (1980)

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