Milton Friedman (1912 - 2006) was a titan of 20th-century economics and flourished during the mid-20th century Cold War ideological battle between free-market capitalism and planned-economy communism. He was a champion of free-market capitalism, classical liberalism, and leading figure in the Monetarist school of economic thought, stressing the importance of money supply in controlling inflation. His notable works include *Capitalism and Freedom*, *Free to Choose*, and his magnum opus, *A Monetary History of the United States*. In 1976, he was awarded the Nobel Prize in Economics for his research on consumption analysis, monetary history and theory. His advocacy for free markets and limited government had a significant influence on American and global economic policies, often credited with contributing to the conservative and libertarian ideological renaissance of the 1980s. Friedman’s legacy isn’t without controversy. Critics charge that his staunch free-market advocacy overlooked or dismissed the societal and environmental externalities generated by unfettered capitalism. Additionally, his and his “Chicago Boys” disciples advisory to Chile's Pinochet regime was criticized for contributing to the regime's human rights abuses. Friedman's ideas continue to evoke debates, reflecting his enduring impact on economics and policy discourse. His ideas on school vouchers, flat tax, and volunteer military have left a lasting imprint on policy discussions. The following is a summary of *Chapter I: The Relation between Economic Freedom and Political Freedom* from Milton Friedman’s *Capitalism and Freedom* published in 1962. In the book, Friedman discusses the role of capitalism in liberal society, argues for economic freedom as a prerequisite for political freedom, and advocates for free-market capitalism with minimal government intervention. In the introduction, Friedman lays out the principles of his archetypal liberal. Friedman notes a “corruption” in the meaning of liberal over time, where ideas once categorized as liberal now fall under conservatism. He harkens back to the “classical liberal” of late eighteenth century Europe, advocating for a free-market economy, minimal government intervention, and the preservation of individual liberties from government overreach In *Chapter I: The Relation between Economic Freedom*, Friedman promotes economic freedom as both a necessary form of freedom and a vital prerequisite for political freedom. He argues that a planned economy is antithetical to the existence of dissent and exchange of ideas. Whereas a free market economy nurtures a free society by decentralizing power and enabling a diverse set of opinions and dissent. ## Chapter I. The Relation between Economic Freedom and Political Freedom It is erroneously believed that politics and economics are disconnected. In that vein, “democratic socialists” try to combine socialist economy with maintenance of individual freedom. **The thesis of this chapter argues that there is an intimate connection between economics and politics, that only certain economic-political arrangements are viable, and that a socialist state cannot guarantee individual freedoms.** > It is widely believed that politics and economics are separate and largely unconnected; that individual freedom is a political problem and material welfare an economic problem; and that any kind of political arrangements can be combined with any kind of economic arrangements. The chief contemporary manifestation of this idea is the advocacy of "democratic socialism" by many who condemn out of hand the restrictions on individual freedom imposed by "totalitarian socialism" in Russia, and who are persuaded that it is possible for a country to adopt the essential features of Russian economic arrangements and yet to ensure individual freedom through political arrangements. The thesis of this chapter is that such a view is a delusion, that there is an intimate connection between economics and politics, that only certain combinations of political and economic arrangements are possible, and that in particular, a society which is socialist cannot also be democratic, in the sense of guaranteeing individual freedom. Economic freedom is itself a component of freedom more broadly and so is an end itself. And economic freedom makes possible the achievement of political freedom. ___ What does it mean when Friedman says the economic and the political are linked? The state should only be concerned with regulating the free market, making the competition fair, and enforcing contracts / property. What is competitive capitalism? Why does Friedman think competitive capitalism promote freedom? > Viewed as a means to the end of political freedom, economic arrangements are important because of their effect on the concentration or dispersion of power. The kind of economic organization that provides economic freedom directly, namely, competitive capitalism, also promotes political freedom because it separates economic power from political power and in this way enables the one to offset the other. >Exchange can therefore bring about co-ordination without coercion. A working model of a society organized through voluntary exchange is a free private enterprise exchange economy what we have been calling competitive capitalism.