Freedom or Constraint: The Market

Part A 

Question 1 

Lindbloom believes that the free market mostly constraints rather than liberates. He indicates that the market needs to be used in a limited manner to allow equal distribution of wealth within the society. According to (Lindbloom, 1982, pg. 327) free market has imprisoned the decisions made by the democratic government because they do not have the power to make effective changes that contribute to the growth of the market. This opens a door for the businessmen to influence how the market will run because they have the free will to set standards for the market with no one to question their decisions. 

Question 2 

According to Lindbloom, the free market diminishes how the broad public and the academic experts think. He argues that the free market allows social coordination which influences experts and the public to take action according to how the market is. This diminishes growth because individuals follow the direction of the market instead of molding its direction (Lindbloom, 1982, pg. 329) 

Question 3 

Friedman maintains that there is only one social responsibility in business which involves to use the resources available and to ensure engagement in activities that will increase profits. As long as these activities stay within the rules of the game, which only allows open, free and fair competition without any deception or fraud (Friedman, 1990, pg. 66). Friedman argues that competitive markets work efficiently and effectively when it comes to allocation of the resources at hand. The space element allows people to use what they have on hand to ensure growth and continuity of profits. 

Part B 

Question 4 

In my opinion, Friedman’s argument is more valid than Lindbloom’s. This is because Friedman was an idealist and all his arguments were based on practical realities. He once stated that a nation or individuals make a huge mistake by judging policies by their intentions rather than their results (Friedman, 1990, pg. 66). He mainly disagreed with raising the minimum wage because he was convinced that it would harm the young as well as the low-skilled workers. 

He also indicated that the government failure could have more implications than market failure. He indicated an incident about how President Richard Nixon contributed to gasoline shortage and higher unemployment when he controlled wages and prices. This is a pure indicator of how voluntary interactions between consumers and businesspeople play a major role in the production of superior results. 

Friedman was a huge critic of the government power, and he was certain that free markets gave better results when they operated on morality and efficiency grounds. When it came to actual economics, he came up with data that indicated that taxpayers could spend money wisely and carefully because they had worked very hard for it. The government policy is executed through force and this created undesired consequences and tension which results to low productivity. The government policy only pushes individuals to bend the rules put in place to fit their desires. The force inflicted creates a platform for the wealthy to misuse the market to fit their personal needs and this is what contributes to government failure. 

Part C 

Question 5 

I disagree with the statement that Friedman’s argument is more valid than Lindbloom’s. This is because Lindbloom presents a very viable argument when he states that if the market is left to free will then people will have no policies to work with. He gives an example of an employee who wakes up very early in the morning to go to work because he or she knows that at the end of the month he will receive an amount of money for the services he has done throughout the month. 

This elaborates that to function properly decision making must satisfy an agreement and objectives which in return give accurate predictions as well as consequences and other available alternatives. Lindbloom also presents an argument that efficiency is a high motivator for the market and once control is distributed, it allows efficient and rapid solutions. He also states that when we look into the market system, we will note that it is a system of social coordination whose main goal and reach, goes beyond any economic behavior. 

Lindbloom’s argument is further supported by (Sandel, 2009, pg. 20) when he states that, a strong and just community requires a cultivation and dedication to the common good. He indicates consequences are what matter the most because just action is what promotes a better outcome in all instances. 

References 

Friedman, M., & Friedman, R. (1990). Free to choose: A personal statement . Houghton Mifflin Harcourt. 

Lindblom, C. E. (1982). The market as prison. The Journal of Politics , 44 (2), 324-336. 

Sandel, M. J. (2009). Justice: What's the Right Thing to Do? Farrar, Straus and Giroux.