What is missing in the planned economy is the role of personal incentives based on freedom. They compare the economic systems of capitalism and planned economy and discuss why capitalism results in greater prosperity. Using this approach as their basis, the Friedmans look at various economic problems that nations have faced. There cannot be political freedom without economic freedom void of force and coercion. All market participants will do what is best for the economy while acting in their own self-interest ,and the result will be an efficient outcome in which all economic agents benefit from exchange. This is basically Adam Smith's invisible hand concept.
In this way, all market participants will receive the correct information from the markets without any distortions introduced by government rules, regulations and policies.
The market relays information through prices therefore, prices must be free to reach their own levels, based on the buying preferences of consumers and the selling preferences of producers, without any government interference. The Friedmans' economics is based on the themes of human freedom, economic freedom and equity and the book discusses what happens when these three concepts are ignored. The book combines introductory economics concepts with political philosophy, which is usually missing from many introductory economic courses. Milton Friedman's TV series, Free to Choose is based upon this book. The book illustrates the Friedmans' strong beliefs in free markets and capitalism. Free to Choose: A Personal Statement by Milton and Rose Friedman is a book about economics.
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