Kyumin Lydia Lee

Milton Friedman in his book “ Capitalism and Freedom” has presented the direct relationship between the Economic freedom and Political freedom. He cleverly plots the role of economic arrangement by providing insights from the historic evidences to voice the relationship between the political freedom and economic freedom (a free market). And weights, that capitalism is a necessary condition for political freedom but clearly not sufficient.  He continues to illustrate this close relation through instances as that of the “ control of engagements “. He emphasizes that effective freedom would promote co-operation without coercion.Following the important role of government as an umpire to interpret and enforce the rule decided on. He further throws light on freedom to advocate capitalism in socialist and capitalist society and stresses significance of the cost to be limited but not prohibited.

I fiercely agree with Mr Friedman that the economic and political process are linked: one generates and other sustains.This is strongly supported by the performance of the United States, which is one of the oldest democracy and enjoys robust freedom. Friedman in his interview with the Young America’s Foundation on 25th Annual National Conservative Student Conference claimed that“ Economic Freedom is necessary for Political Freedom but not sufficient. Political Freedom on the other hand is neither necessary nor sufficient for Economic Freedom”. This can be argued upon by viewing the state of India,China,Saudi Arabia,Kuwait, where India enjoys a vibrant democracy, unlike China , Saudi Arabia and Kuwait yet is ranked below them in terms of Economic Freedom Index represented by Heritage. This exhibits that Economic Freedom does not seem to be a necessary condition for political freedom. The talks on the political freedom and economic freedom is a complicated and not a unilateral one which often cuts one another.

Economics is the study of handling money through necessitates and desires while regulating the distribution of wealth. There are two different types of classifications that look at the overall picture of the economy:

Macroeconomics: The outlook of the economy that deals with the circulation of wealth through the country.

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