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 economy poses an obvious danger to the nation's democracy (Hoagland & Frye, 2012). Citizens are prevented from evaluating the government and protesting against unethical activities due to purposeful involvement. A government having the ability to influence company recruiting practices is an excellent example. In this scenario, the government would almost certainly deploy such powers to apprehend its political foes (Patey, 2019). A system similar to this was witnessed in the US administration after WWII (Milton, 2002). The government coerced the movie business into dismissing anybody seen as a political opponent, thereby depriving communists in America the ability to work in the industry (Milton, 2002). It was a rejection of people's right to free expression, regardless of how strongly they considered communism as a danger to liberal democracy.
A robust market economy can provide the foundation for a decentralized energy system. On the one hand, a market base of wealthy individuals and many regular citizens allows citizens to apply pressure on tyrannical political powers (Cohen, 1981). The government's monopoly can jeopardize civil liberties. According to Friedman, separating economic power from the state is crucial for political and civic independence (Hoagland & Frye, 2012). There are, however, a slew of other factors that contribute to such liberties, such as a country's economic strength, which has a significant impact on its political decision-making processes (Bergmann, 1994). Friedman also claims that a consumer's autonomy allows all of the economy's stakeholders to achieve their objectives simultaneously (Goldman, 1969). The market economy, he says, "provides consensus without conformity (Davis, 2012). His theories are flexible because the government can interfere in the market economy, particularly when the market proves to be too expensive for ordinary individuals.
Globalization promotes democracy both directly and indirectly. Because rural farmers may now bypass the governing classes and castes by delivering their commodities directly to the market, there is a direct link (Davis, 2012). As a result, they may begin to develop into more autonomous political actors with democratic goals. Globalization is how economies are integrated into global expansion in international commerce, direct investment (by businesses and organizations), short-term money flows, global labor mobility, and technological transfers. Globalization leads to riches as the middle class expands, and affluence helps political democracy (Milton, 2002). According to the study, financial globalization has led to and assists in preserving political freedom, according to the survey, which uses Russia and China as examples (Milton, 2002). The first is a centralized command, which entails using force, war planning, and a contemporary totalitarian government approach (Cohen, 1981). The other is individual voluntary cooperation, which is a marketplace method (Goldman, 1969). As a result, without force, the exchange can bring about collaboration (Hoagland & Frye, 2012). A free private industry exchange economy, or competitive capitalism, is a workable model of a society structured by voluntary exchange (Bergmann, 1994). Since money is power, economic freedom allows for democratic freedoms (Cohen, 1981). Business growth management is no longer under the grip of political authority, thanks to a free sector and financial autonomy. It allows economic might to act as a check rather than reinforcing political power (Davis, 2016). When maintained apart from political authority, financial influence checks a...