Simplifying Capitalism - Part/Chapter Two

        From my two previous posts on capitalism, my readers might logically and reasonably assume that capitalists think that, indeed, all government is evil and must be destroyed. After all, Friedman says that government, specifically American government, has done a lot of things wrong. He says government should not interfere with buying and selling, he says that government should not use coercion to manage the people's economic activities, and he says that government interferes in American society in many areas where it should not be present. Thus we can conclude that capitalism proposes government should be done away with.
So to Washington D.C., conservative Americans! We must wave our banners and proclaim that the White House should be burned and the office of President abolished! ... Right, Friedman??
         Unfortunately, no. In the second chapter of "Capitalism and Freedom," titled "The Role of Government in a Free Society," we find that this is not Friedman's conclusion at all. On the contrary, our government has an extremely important role to play in the workings of this nation. After all, where would we be without leaders, without authority, without referees? And this is, in fact, government's primary job - that of referee. As a rule, the people should be left to their freedoms of speech, religion, thought, and open marketing. But this does not mean there shouldn't be laws, and this does not mean there shouldn't be individuals to enforce these laws. Therefore, our government's job is double-sided; it must know where to step in and where to stay out.
        Firstly, there are many important ways it must step in. In this chapter Friedman has defined eight specific areas of government intervention...
1.) Maintain order and uphold the laws,
2.) Define and uphold property rights,
3.) Arbitrate disputes,
4.) Enforce contracts,
5.) Promote competition,
6.) Counter technical monopolies, (monopolies on lighting, transportation, electricity, etc.)
7.) Counter neighborhood effects, (by-products of private agreements that harm a third, uninvolved party,) and
8.) Support private charities and support families to govern the irresponsible (children and lunatics.)
        These are extremely important functions, ones that, if adequately performed, would have an enormous impact on our society's law and order. We can trust humans to be able to manage their own affairs, but we need higher authority when these affairs threaten to harm other human beings. This also goes along with the Founding Fathers' idea of three separate branches of government - one branch, the legislative, makes the laws. The next branch, the administrative, puts the laws into action. The third branch, the judicial, tries and punishes those accused of breaking the laws. Without government we would be a lost and immoral country indeed. A few important lines from one of my favorite plays, "A Man for All Seasons" by Robert Bolt, serve to express this concept; 

Will Roper: So, now you give the Devil the benefit of law!
Sir Thomas More: Yes! What would you do? Cut a great road through the law to get after the Devil? Will: Yes, I'd cut down every law in England to do that!
Sir Thomas: Oh? And when the last law was down, and the Devil turned 'round on you, where would you hide, Roper, the laws all being flat? This country is planted thick with laws, from coast to coast... And if you cut them down, (and you're just the man to do it,) do you really think you could stand upright in the winds that would blow then? Yes, I'd give the Devil benefit of law, for my own safety's sake!

           In other words, so many people's lives would be threatened and ruined if there were no standards by which to judge their actions. America devoid of laws and authority is a frightening thought. 
           Government's role however, is not only very vital to the preservation of law and justice in our country, but is, (or should be,) a very defined role. There are many areas of society in which it can and should, in fact, be an active participant; there are also areas where it should mind its own business. This is where some of the lines become fuzzy. Many recent presidents, beginning, I believe, with Teddy Roosevelt and the "Progressive" Age, have taken it upon themselves to broaden, expand, and re-define government's parameters in society so much so, that these parameters hardly exist anymore. That is to say, fewer and fewer boundaries restrict government from intruding upon every area of our lives. This is also a frightening thought, one that has given rise to much concern from conservative Americans like Friedman. In this chapter he also lists 12 roles government has taken it upon itself that should instead be played by the American citizen...
1.) Sets agriculture prices,
2.) Sets tariffs on imports and exports,
3.) Controls output,
4.) Uses rent, price, and wage controls,
5.) Regulates many industries,
6.) Regulates and censors free speech,
7.) Forces people to use social security programs,
8.) Public housing,
9.) Conscription into military service, (employed several times throughout our history, such as during the later stages of the Vietnam War,)
10.) National parks,
11.) Government post offices, and
12.) Government toll booths.
         And these are not its only spheres of influence - think of public high schools, public colleges, income taxes, public service projects, licenses on occupations, the alphabet soup of wasteful government programs, its interference in health care. You are probably familiar with and accustomed to the government being a part of all these things in your life. I, for one, have become very used to giving my Social Security number to anyone in the public sector who asks for it, though I don't really or fully understand Social Security's purpose. All I know is that I had to have that 10-digit number memorized by the time I was 16 and can only do certain things if I write it down on certain forms. There are three very important things that define American individuals - our health, our education, and our jobs; Washington has stuck its finger, its entire hand rather, deeply into all three.
      I could continue in this line of argument for many pages, using 1984 or Animal Farm by George Orwell, or excerpts from works of Hayek, Reagan, and De Tocqueville as support. However an anti-government theme is not my focus. I merely wish to point out, as Friedman did, that government should and does have certain duties, and one of those duties is leaving the market alone. The more recent presidents have found this difficult to do - they have found it impossible to do. And te consequences for our economy have been disastrous. More importantly, the consequences for our much-cherished liberty have been disastrous. 
     This is a summation of Friedman's "The Role of Government In a Free Society," along with my own commentary and thoughts on the subject. There is much, much more I want to say, but I'll stick with this expression of the main points for now. Any comments or questions below would be much appreciated.