Capitalism and Freedom by Rose D. Friedman and Milton Friedman (2002, Paperback, Anniversary)

Great Book! The Ideas he put forward were relevant then and still major issues now. Real illustrates the clear connections between the individual rights and economic freedom.

This is a good example of taking one value, freedom, and arguing policy from its implications on this value alone. There are three primary problems: (1) he fails to consider any other values (such as equity, meritocracy, environmental sustainability, human rights or dignity, world hunger and starvation, concern for the wellbeing of others, etc.) that are also important to Americans. His policy recommendations thus by definition only work if freedom is the only value one subscribes to. If you have more values, you find yourself not supporting most of his conclusions after you give some thought to how the other values play into the conclusions. (2) When he considers "neighborhood effects" (as something that violates freedom, as in our right not to have uneducated or homeless people interfere with our wellbeing) he fails to consider the possiblility that his core value, freedom, is violated by some of his recommendations. (3) Some of his conclusions are detached from reality in the sense that he fails to consider the implications of market imperfections, like information assymetry, which is a problem in most industries, especially healthcare (doctors know more about whether you need surgery or drugs than you do, but they stand to earn a profit from performing these services). Another market failure he fails to consider is externalities--acts of corporations that can effect the environment or other third parties. A truly balanced policy look will consider market imperfections and government imperfections openmindedly.

Friedman's self-proclaimed classic establishes him as the prototypical Libertarian. He takes classical liberalism a bit too far in such ludicrous postures as professional organizations inhibit progress and innovation, that monopolies do not. In the chapter on education, Friedman seems far from his element, and strays even farther there from his classical liberal theme. He may be more nearly on course, however, on the subject of fiscal policies, but he seems to forget than basing a nation's money supply on precious metals has never worked in the long run.
However idealistically flawed his arguments may be, Friedman has been listened to, his ideas the basis of much of the GOP's ideology since the 1960s.