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Milton Friedman on Voluntary exchange

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.
Free to Choose
Book, 1980, Ch. 1 "The Power of the Market", p. 13
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  1. 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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  2. The 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 Freedom
    Book, 1962, Ch. 2 The Role of Government in a Free Society, p. 27
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  3. The most important single central fact about a free market is that no exchange takes place unless both parties benefit.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “The Economic Logic Behind Black Markets,” interview conducted October 1, 2000
    Checked against the sourceRead the transcript

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