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Subject:  Re: Week 4- Friedman's Capitalism and Freedom Date:  8/27/2012  9:47 AM
Author:  tabs101 Number:  23719 of 23810

Friedman states what he declares an elementary proposition about economics: That in a voluntary trade where both parties are informed, each side walks away better off.

A model of competitive capitalism revolves around voluntary coordination of economic activities. Unlike socialism, coercion is not needed to allocate societies resources.

As an example, albeit a simple one, consider a household that is using its resources, its private property, to create a variety of goods and service. These goods and services are exchanged with other households voluntarily, in mutually beneficial trades. A household satisfies its needs indirectly rather than directly. By doing this, each household can get the most from its available resources, as opposed to using these resources solely to satisfy basic needs. Division of labor and specialization of work results in more productivity, more choices for each household. And this is achieved without coercion.

Obviously, as a thought experiment, a model that i