The evidence of history speaks with a single voice. I do not know any exception to the proposition that if you compare like with like, the freer the system, the better off the ordinary poor people have been.
Interpretation
Friedman argues that freer economic systems consistently benefit the poor compared to others.
Milton Friedman emphasizes that historical evidence uniformly suggests that economic freedom leads to better living conditions for ordinary people, particularly the poor. By comparing similar societies, he asserts that those which embrace freedom in their economic systems show greater wealth and well-being for their citizens, especially those who are less fortunate.
In practice
In a speech on economic policies, one might cite this quote to advocate for free markets.
The economic miracle that has been the United States was not produced by socialized enterprises, by government-unon-industry cartels or by centralized economic planning. It was produced by private enterprises in a profit-and-loss system. And losses were at least as important in weeding out failures, as profits in fostering successes. Let government succor failures, and we shall be headed for stagnation and decline.
Universities exist to transmit knowledge and understanding of ideas and values to students not to provide entertainment for spectators or employment for athletes.
There is no place for government to prohibit consumers from buying products the effect of which will be to harm themselves.
There is one and only one social responsibility of business - to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.
The great danger to the consumer is the monopoly -whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him. Alternative sources of supply protect the consumer far more effectively than all the Ralph Naders of the world.
The strongest argument for free enterprise is that it prevents anybody from having too much power. Whether that person is a government official, a trade union official, or a business executive. If forces them to put up or shut up. They either have to deliver the goods, produce something that people are willing to pay for, are willing to buy, or else they have to go into a different business.
The truth of good economic doctoring is to know the general principles, and to really know the specifics. To understand the context, and also, to understand that an economy may need some tender loving care, not just the so-called hard truths, if it's going to get by.
Regulatory reform must move beyond limiting the damage that the financial sector can do and ensure that the sector genuinely serves society.
If the Republican Party continues to take the view that there must be no tax increases, we're stuck. Capitalism can't work without safety nets or fiscal prudence, and we need both in a sustainable balance.
A universal basic income would be the best way to give everyone the opportunity to do more unpaid but incredibly important work, such as caring for children and the elderly.
History proves... that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.
I'm an entrepreneur trying to let the American people know that it's not immigrants that are causing economic problems, it is the fact that our economy is advancing in ways that is making human labor less and less essential.
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