Connection Between Freedom and Capitalism

The connection between Freedom and Capitalism
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The connection between Freedom and Capitalism
Milton Friedman, a well-known economist, believed that democracy and capitalism are inextricably intertwined. For various reasons, it's critical to comprehend and evaluate the relationship between economic and political liberty. These factors may be examined from a commercial and financial standpoint and a political perspective. From a commercial viewpoint, multinational companies (MNCs) and business executives looking for new countries to invest in is interested in the organization (Davis, 2016). If the association is strong sufficient, MNCs ought to be free to stare at a nation's democratic freedoms and immediately infer that if the nation's democratic space is high, the state's financial liberty is also increased when looking for a market. In a democracy, capitalism generates a new aristocracy based on capital accumulation that makes up the governing class.
In conditions like Iraq, this connection is crucial from a political aspect instead of invading and democratizing the country. If the link is strong enough, there may be repercussions. If the link is strong enough, it might have consequences for countries in the process of democratization (Cohen, 1981). When a government establishes democracy, it must also create adequate economic freedom to retain that democracy. If the link is strong enough, nation-building must simultaneously encompass political and economic liberty (Patey, 2019). According to Friedman (2002), democracy and capitalism are inextricably linked. Both are elective, giving the impression of democratic empowerment. Because authority stays in the hands of the people, capitalism does not allow for a tyrannical government. Capitalism provides a free society where the government's duty is limited to preserving and enforcing law and order (Milton, 2002). There are instances when government action can assist in resolving challenges that cannot be determined by decentralized market activity. He goes on to say that he thinks it's a reasonable strategy (Bergmann, 1994). Friedman says that reducing market meddling can minimize the need for such interventions (Bergmann, 1994). Another alternative is to utilize an intervention strategy that is entirely reliant on the market.
Friedman claims that economic liberty is a sign of a properly understood form of liberty. Such flexibility permits consumers and sellers to purchase and sell items they believe will best suit their wants and expectations. A restriction on the decentralized market is the same as a restriction on freedom. The government levying highly high tariffs on some commodities is an excellent example. Most customers would not purchase adequate quantities of such things due to the act (Cohen, 1981). As a result, the customers' flexibility will be limited. In another case, the government may restrict customers' freedom by requiring them to utilize government-provided services such as power. There will be no room for private entrepreneurs to start competing firms in that industry.
The government's power to meddle intentionally in the decentralized market econ...