Machinery of Freedom: Guide to a Radical Capitalism Paperback – 19 Apr 1989

This book is great for introduction to libertarian (or anarcho-capitalism) ideas to someone not familiar with them but also for "already convinced" libertarians or anyone who only roughly knows what it means, but otherwise cannot imagine living in society without a government.

Friedman does not write from ideological (moral) perspective, his approach is highly practical. Being economist he rather focuses on efficiency of how mechanics of society work now and how they would work in market driven world without legitimized coercion.
He offers comparison of current and stateless society for topics like inequality, monopolies, schooling, immigration, healthcare and regulations. He tackles harder (probably the most interesting) aspects which most of the people cannot imagine could be private only - like police, courts and law. But also hardest problems like national defense or externalities (like pollution) are analysed. It shows not only desired target for libertarians but how to get there in small steps.

Arguments are well thought, based on facts, numbers, often with examples from history. Author is not closing his eyes to real problems like paradoxes appearing when libertarian dogmas are followed literally. Interesting is topic about market failure and his explanation why this real inefficiency is bigger in society with government.

Book was originally written 40 years ago and this is its third edition (interesting to see how some his older thoughts became reality during that time).

Negative: Structure of the book is not very systematic, sometimes it feels like bundle of loosely related articles (this applies mainly to appendices).

David Friedman, son of renowned economist Milton Friedman, is an economist, libertarian and anarcho-capitalist, and it was to explore the difference between libertarianism and anarcho-capitalism that I read this book.

Friedman writes "I hold that there are no proper functions of government. In that sense I am an anarchist." A government, Friedman states, is an agency of legitimised coercion. He acknowledges that most libertarians (such as his father, e.g. in Capitalism and Freedom) believe in limited government, not in no government at all, but unlike mainstream anarchists (if I may put it that way) Friedman does believe in the right to own, enjoy and protect private property. Libertarian society, free from coercion, is his aim, and anarcho-capitalist institutions are the means he thinks most likely to achieve that aim.

The first two parts of the book cover what might be called standard libertarian theory: why private property is the basis of freedom, why the free market is more efficient and ultimately results in greater prosperity, and why most social care programmes that claim to be transferring wealth from the rich to the poor or to protect the disadvantaged do no such thing and often result from compromises made to satisfy competing interest groups. He gives a series of measures that would limit the size and power of government, incremental measures to move in the direction of a freer society.
Part III is where the book gets really interesting, as Friedman starts to explain anarchy as he proposes it. Here he goes further than anything Milton Friedman or many others go, suggesting ways in which those functions that even libertarians would reserve to government might be turned over to the private arrangements of consenting people acting voluntarily: the administration of justice, law and order, national defence, the provision of large scale "public good". These make for pretty challenging ideas for most: the police, for example, would be replaced by a market of competing protection agencies.

In the fourth (and final) part of the book, which he describes as an expanded postscript for libertarians, he devotes his longest chapters to an economic analysis of law and explains how justice worked in a private market in mediaeval Iceland. The economic analysis of law is Friedman's specialism, and I shall in due course read his more recent book "Law's Order: What Economics has to do with the law and why it matters". He deals also with whether there can be a libertarian foreign policy, concluding that foreign policy cannot really be conducted in accordance with libertarian principles without it amounting to surrender (or a nuclear tripwire) and that a policy of only very reluctant intervention would be the next best thing. (In quoting him in the title of this review, by the way, do not think that Friedman was concerned that only the US Government would implement an interventionist foreign policy poorly; his criticism would apply to all governments, especially (and perhaps ironically) to democratic ones.) He also proposes a system of private money based on a basket of commodities and partial reserve banking, although he concludes that one based on gold would be better than "government money" but that he did not think that we would see the back of the latter for some time to come.

Being something of a cynical old authoritarian at heart (better one hundred years of tyranny than one day of anarchy, etc) I am far from convinced that very many of the anarcho- ideas would work, but it is certainly interesting reading. Friedman does not think that this would, in any case, be achieved quickly: rather, as the role of government was progressively reduced he thinks that its reason for existence would gradually wither away to nothing as everyone found better, more efficient, free market solutions. I would, however, be happy to proceed gently along the same path as David Friedman, and if we could get to a stage where government had been reduced to a bare minimum, to think again as to whether we could proceed to do without it altogether.

Friedman provides an extensive bibliography that is unusual on two counts: he comments, sometimes at length, as to how quoted works have influenced his thinking and, secondly, he quotes many works of fiction, including much science fiction, in which libertarian and anarcho-capitalist ideas have been expounded. Robert A Heinlein, as it happens, is one of the four people to whom the book is dedicated (the others being his father, Friedrich Hayek and Robert Schuchman (who he?)); this was a little of a surprise to me as Heinlein has been criticised for some fiction that appeared to extol the virtues of authoritarianism bordering of fascism - Starship Troopers, for example. I shall have to read some Heinlein again, as well as Friedman's own fantasy novel, Harald, if Amazon can find it for me.

Friedman writes in a provocative and entertaining style, although the often very short chapters gave me the impression of reading a series of newspaper articles. I did particularly like: "The direct use of physical force is so poor a solution to the problem of limited resources that it is commonly only employed by small children and great nations."

An excellent guide for anyone wishing to understand the alternative to the follies of the Keynesian way and a great guide to Libertarianism.

A stunning account of why governments are restricting our freedom and a wonderful description of how things might work if they just let us get on with it.

This book I can recommend both as an introduction to libertarian ideas as well as for those who are already knowledgeable in libertarian thinking. Friedman explains his ideas and concerns very compelling with examples. It is also fun to read.

So what would happen if we threw an election and nobody came? That is the central theme of David Friedman's book The Machinery of Freedom." While it not hard to find libertarians shooting the wounded by attacking easy targets like the post office or the sugar quota, it is rare to find someone who advocates dismantling all government functions. It is even rarer to find someone who does it coherently. Friedman is both of these things.

Friedman presents a utilitarian case for anarchy, or as he refers to it, "anarcho-capitalism." Anarcho-capitalism is essentially a society that not only respects property rights, but has no government. If the two seem to be mutually exclusive, you have not read the book. Friedman slaughters the fallacy that since certain government services (police, fire department, etc) are essential, they must be provided by the government. As a teacher of mine once put it "he throws a monkey wrench into the sacred cow."

After reading the Machinery of Freedom, you will wonder why you didn't think like this all along.

Steve French

I'd like to endorse Steve French's excellent review. I'd mention also that while the book is readable, likeable, original, and inspiring, Friedman doesn't try to offer detailed blueprints of the machinery of freedom. He sketches out the principles of its operation, with examples; which is about as much as anyone can do at this stage. If future societies wish to be free, they'll have to do the detailed work themselves, by the usual trial and error process. I hope they succeed.