Milton Friedman’s Hidden Anarchism in Capitalism and Freedom

Andrew Chrucky

Aug. 8, 2008

chatGPT evauation:

Andrew Chrucky’s analysis of Milton Friedman’s Capitalism and Freedom (1962) offers an intriguing critique that situates Friedman’s ideas within an anarchist framework. Chrucky’s argument revolves around the perceived inconsistency between Friedman’s principles of limited government intervention and his failure to address the conditions necessary for the existence of truly “independent households,” a core aspect of Friedman’s libertarian vision. Let’s break down the evaluation:

Friedman’s Two Principles and Chrucky’s Critique

Chrucky begins by outlining two explicit political principles that Friedman presents in the opening chapters of Capitalism and Freedom:

  1. The principle of minimal government intervention in economic matters, arguing that the government’s role should be limited to protecting individual freedoms.
  2. The importance of voluntary, mutually beneficial exchanges in economic and political interactions, which aligns with a laissez-faire system.

Chrucky agrees with these principles in theory but argues that Friedman’s applications of these principles are problematic because they ignore an essential third principle: the condition of independent households. This third principle, Chrucky argues, is implicit in Friedman’s work but is never directly addressed.

The Anarchist Critique

Chrucky suggests that Friedman’s vision of an ideal society aligns with anarchism, at least in the sense that it describes a world where individuals or households interact voluntarily without coercion. According to Chrucky, anarchism can be understood as:

  1. A community of independent households, each self-sufficient and able to exchange goods and services freely.
  2. Political and economic cooperation through voluntary agreements rather than state-imposed laws or force.

The central problem, as Chrucky sees it, is that in industrialized societies, “independent households” are a myth. True independence—particularly economic independence—requires access to subsistence land, a condition that industrial societies, particularly capitalist ones, systematically deny. In these societies, land is privately owned and subject to taxation or other legal controls, meaning that households are not independent in the way Friedman envisions. The absence of access to land makes true independence impossible for most people, leading to a system of dependency.

Friedman’s Oversight of Independent Households

Chrucky argues that if Friedman were truly committed to his vision of independent households, he would need to advocate for agrarian reform, which would involve redistributing land to ensure that everyone has access to the resources necessary to live independently. However, Friedman fails to address this issue, which Chrucky interprets as a major oversight. Instead of addressing land access or proposing a reform to guarantee independence, Friedman focuses on policies like the negative income tax, which Chrucky argues would merely create dependence on the state or on other households. A truly independent household, according to Chrucky, should not rely on transfers from others but should be self-sustaining.

The “Robinson Crusoe” Problem

Chrucky highlights a key passage in Capitalism and Freedom where Friedman uses the example of Robinson Crusoe to illustrate the principle of voluntary exchange and the role of property rights. In this thought experiment, Crusoe, stranded on an island, decides whether to share his resources with others who are similarly stranded. Friedman uses this scenario to argue against forced redistribution of wealth, suggesting that it would be unjust for the three Crusoes on barren islands to compel the Crusoe with a large, fruitful island to share his wealth.

Chrucky criticizes this analogy, pointing out that land is not like a random $20 bill one might find on the street. Access to land, especially arable land for subsistence, is a fundamental need, not just a luxury. The analogy breaks down because it fails to address the necessity of land for survival, and instead treats property as a matter of individual choice and chance. Chrucky argues that if Friedman’s theory of independent households is to hold, it should require a universal right to land or a subsistence land guarantee for all individuals.

Implicit Entitlement Theory and Inequities of Land Distribution

Friedman’s apparent acceptance of entitlement theory—the idea that people’s rights to property are just based on their first occupancy or acquisition—also comes under scrutiny from Chrucky. Chrucky contends that while entitlement theory may apply to things like personal labor or wealth one has accumulated, it fails to justify existing land holdings, which are the product of historical decisions and social structures (such as colonialism or feudalism) that do not reflect the principles of voluntary exchange or equality.

Chrucky suggests that an anarchist perspective would demand a recognition of the unjust nature of current land ownership patterns and would call for a system that guarantees individuals access to land as a basic right. Only then could individuals be truly independent in the way that Friedman envisions.

The Role of Government in Anarchism

Chrucky challenges Friedman’s belief that government intervention is inherently coercive and should be minimized or eliminated. Anarchists, as Chrucky points out, are not necessarily against all forms of government but are against coercive, centralized state power. Anarchism, as Chrucky sees it, envisions a decentralized form of governance, where voluntary agreements between independent households form the basis of social coordination. This kind of system could allow for the cooperative, voluntary economic relationships that Friedman advocates without relying on state-enforced policies.

For Chrucky, the ideal system of government would not be a top-down bureaucratic state but a federation of independent households—a decentralized community where households coordinate with one another through voluntary contracts or delegates, much like the Amish or federated communes. This, he argues, would be a closer realization of Friedman’s vision than the current model of centralized governance.

Conclusion: The Inconsistencies in Friedman’s Vision

Ultimately, Chrucky concludes that Friedman’s principles are inconsistent because he overlooks the necessary conditions for true economic independence—namely, access to subsistence land. Without addressing this issue, Friedman’s ideas about voluntary exchange and minimal government intervention are, at best, idealistic and, at worst, impractical and inconsistent with the reality of dependency in modern society. For a truly anarchistic society to emerge, Chrucky argues, it would require not only decentralized government and laissez-faire economics but also a universal right to subsistence land for all individuals.

This critique invites a deeper exploration of the ways in which anarchism and libertarianism might intersect, offering a vision of a society where individual autonomy is protected by ensuring that all have access to the basic resources necessary for independence.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.