Milton Friedman on Concentrated power and tyranny
Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion—the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals—the technique of the market place.
Capitalism and Freedom
Book, 1962, Ch. 1 The Relation Between Economic Freedom and Political Freedom, pp. 12-13
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A liberal is fundamentally fearful of concentrated power. His objective is to preserve the maximum degree of freedom for each individual separately that is compatible with one man's freedom not interfering with other men's freedom. He believes that this objective requires that power be dispersed. He is suspicious of assigning to government any functions that can be performed through the market, both because this substitutes coercion for voluntary co-operation in the area in question and because, by giving government an increased role, it threatens freedom in other areas.
Capitalism and FreedomBook, 1962, Ch. 3 The Control of Money, p. 39Not yet checkedThe organization of economic activity through voluntary exchange presumes that we have provided, through government, for the maintenance of law and order to prevent coercion of one individual by another, the enforcement of contracts voluntarily entered into, the definition of the meaning of property rights, the interpretation and enforcement of such rights, and the provision of a monetary framework.
Capitalism and FreedomBook, 1962, Ch. 2 The Role of Government in a Free Society, p. 27Not yet checkedThe 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.
Free to ChooseBook, 1980, Ch. 1 "The Power of the Market", p. 13Not yet checked
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