1. What is Friedman’s main objection to Kennedy’s speech? Why form of government does this suggest to him? Why does he reject it? What is Friedman’s view of government?

2. What is the danger of having a state? What two main defences against this are there? How do they protect us? (Do you think Friedman is right here – either about the defences themselves or their effectiveness?)

3. Friedman proposes a thesis against the efficiency of a centralized government. What is it? Is it a good argument? (Can you think of cases where a centralized government does do the things he claims it cannot?)

4. Be careful when reading Friedman’s take on what a ‘real’ liberal is. He is partly correct – that it is important to see that the views of liberalism have changed over time but his characterization of modern (what he calls twentieth century) liberalism is extremely biased and contentious. (In this case, he has violated the Principle of Charity.)

5. What is the main thesis of chapter one? What view is he opposed to?

6. How does economics influence freedom? (There are two ways.)

7. What is the point of the vacation and social security examples? Do you agree that this lack of freedom is "at least comparable" to a lack of political freedom?

8. Friedman thinks that political freedom is impossible without competitive capitalism. Why does he think this? What historical evidence does he present?

9. What does Friedman think is the "ultimate goal in judging social arrangements"? How does this relate to government?

10. "The possibility of co-ordination through voluntary co-operation rests on the elementary – yet frequently denied – proposition that both parties to an economic transaction benefit from it, provided the transaction is bi-laterally voluntary and informed" (p. 13) Is this true? Does it apply in real life circumstances?

11. "The existence of a free market does not of course eliminate the need for government." (p. 15) Why not? What role does government play?

12. "The preservation of freedom requires the elimination of such concentration of power to the fullest possible extent and the dispersal and distribution of whatever power cannot be eliminated – a system of checks and balances." (p.15) How does Friedman think that capitalism helps do this?

1. Friedman thinks that freedom is best preserved when the state refrains from restricting economic power. In his argument he echoes the constitutional idea of checks and balances. What is his argument? What flaws are in it that you can see? (Think about cases where unrestricted economics serves to lessen freedom.) After considering the advantages and disadvantages of his idea of unfettered capitalism, present an argument for or against his position.