What is the paternalistic ground for governmental activity and why is it troublesome according to Friedman?
The freedom of men can conflict, because absolute freedom is impossible, because often, one man’s freedom must be limited in order to protect the freedom of others. The freedom of men was always implied in the United States, but women only gained the right to vote at the beginning of the 20th century. The paternalistic ground for government activity is troublesome for liberals, because it is inescapable for any group designated as not responsible. This means men a majority of whom are white, make the decisions related to all other groups of people, with little consideration of the rights and wishes of others.
Why are monopolies problematic for Friedman, and what should be done about them?
Monopolies are problematic, because they imply the absence of alternatives, which caused the need for anti-trust laws. Monopolies allowed the power of supply and demand to dictate pricing for customers. When there is healthy competition, consumers make out better. At times, monopolies are the natural outcome competitive market forces due to the limited number of businesses able to complete highly technical processes. In many places, monopolies are permitted in the modern world, because there are limited amount of competition, which have resulted in sky rocketing prices for utilities like electricity and cable, internet, and phone providers.
What are neighborhood effects and how does it relate to government activity according to Friedman?
A neighborhood effect can be defined as an exchange arising when the action of an individual has an effect on other individuals, which is not feasible to charge, or recompense them. A neighborhood effect usually involves an organization attempting to compensate for an issue their presence or growth has created in the neighborhood, whether it is pollution, increased traffic, or noise, a company can decide how it can best offset the bad with good. A neighborhood effect would warrant a local city park, but not a national park.
Works Cited
Friedman, M. Capitalism and Freedom. Chicago: The University of Chicago Press, 2002.
