This book is not difficult to read and its arguments are practical sounding and convincing. externalities) are massive.Ī totally better approach and reading from someone who really understood economics in an objective way is The Limits of Organizations (1974) by Kenneth J. Its implications on inequality and climate change (e.g. The assumption on maximisation of profits by shareholders as a key principle for the power of the market is very fragile assumption on general equilibrium in addition with the initial endowment of individuals, something that Friedman hardly understood and underestimated (see Friedman’s interview on general equilibrium youtube). An unrealistic assumption on how initial endowment is distributed is key but not understood by Friedman, which is key in the mathematical proof of the invisible hand). The theoretical assumptions of the existence of an equilibrium for competitive markets relay on very sensitive assumptions that are easily broken in any market economy (see Arrow and Debreu (1954), Econometrica, for all the mathematical assumptions that are needed to reach Adam Smith’s invisible hand or the First Theorem of Welfare Economics.
Friedman’s book written to highlight the wonders of free markets is an utopian world.
0 kommentar(er)
