First published in 1962, Capitalism and Freedom presents Milton Friedman’s argument that economic freedom is closely connected to political freedom. He maintains that competitive markets allow individuals to make choices independently of the state and help prevent the concentration of power. Friedman argues that government has essential responsibilities, including enforcing contracts, protecting property rights, and maintaining the rule of law, but should generally avoid directing economic activity.

Friedman applies these principles to monetary policy, international trade, education, taxation, and professional regulation. He advocates rules-based monetary policy, floating exchange rates, and school vouchers, while opposing tariffs, compulsory occupational licensing, and various forms of government intervention. He also proposes a negative income tax as an alternative to existing welfare arrangements.

The book combines economic analysis with a broader defence of individual liberty and limited government. Its arguments influenced debates about market-oriented economic reform, while attracting criticism concerning inequality, public services, and the social consequences of reduced government intervention.