Actividad Ética

Samuel Torres Rentería 1034407
Final Paper
Free to choose summary

Free to choose, is a book written by Milton Friedman, a successful economist and analyst from the United States. This book talks about the politic system symmetric to the economic system. Both of them considered as markets, determined by the interaction of people chasing their own interests instead of the social goals. Ittalks in first term about the power of the market, taking into account two points of view. The centralized economy and the free market economy. It is necessary to know that there will always be somebody who is going to give orders and take decisions for a group, but as the book says, it’s impossible to control every movement and element of a group, a leader is needed, but not always he will have totalcontrol. WE can see the Russian economy example in the book, using a centralized economy, avoided in one or another way because of its stiffness. It was permitted to farmers to stay with a little part of the total crop for personal usage out of the labor schedule, this represented about 1% of total usable land, and that personal stock was highly exceeded, talking about 30% of the land. This meansthat a great part of the products commercialized in central economy was illegal. But that was the mainly idea of centralized economy, but now, looking at free market economy, was about making an exchange made in total liberty and taking into account that both parts of the exchange will be benefited. Even with that, it’s known that none of the societies can work with the voluntary cooperation,there’s no progress in the society and economy. Russia couldn’t achieve a good infrastructure, good wages or machinery to work with. Saving, better wages and materials are results of the free market economy. The cooperation had better results than centralism. Friedman says, according to the writing, “Wealth of the nations”, that the government intervention would have to be in national defense,justice, relations and everything the market couldn’t solve, and in an attempt to protect the free market and its evolution, he uses or refers to the language, because it was created in the need of communication between people, It would regulate it, an order was generate by itself through the language. The government’s intervention in the market damages the prosperity and the advances.

Theinterest for the most of the population is always to buy to the cheaper dealer and sell to the one who buys expensive, and those words apply for the internal and external commerce. Some restrictions have been created because of those statements, such as, who to buy or sell, for whom to work, in which conditions, etc. We always fight against us, we always look for our own benefit, and if its profitablefor us it is for the nation, but everyone has different interest, so it becomes into a labyrinth. External commerce controls extend to the internal commerce, they intertwined themselves with every economic activity, and they have been defended for the less developed countries to achieve the progress they are looking for. We can take the book’s analysis between the 1867 Japan, after the Meijirestoration and 1947 India in its independence. Both had similar structures, but the India had advantages because of it opening to world. India conserved the Great Britain advances and industries in there and used them to improve their situation; they had much more population and a better geography than Japan. Leaving time pass, the Japanese situation become pretty well and very different from the startand Indian economy. Japan became a developed country, meanwhile India had high rate of poverty and without any advances. With a little investigation, we can see that Japan improved free market economy and free cooperation, using the state by just the way it had to be used, protecting the nation in every aspect the market couldn’t make it, but dealing in the external and internal markets...