Ep 2. The Tyranny of Control

Free To Choose - The Original 1980 TV Series is a groundbreaking educational program that explores the concepts of economics, individual freedom, and societal progress. In season 1 episode 2 titled The Tyranny of Control, viewers are taken on a fascinating journey to understand the consequences of centralized control.

Through this episode, viewers learn about the negative impacts of political power centralized in the hands of bureaucrats, politicians, and government officials. Milton Friedman, a Nobel Prize-winning economist, explains how big government policies and regulations often lead to negative consequences that diminish the lives of individuals and societies.

Friedman argues that when the government takes over control of resources and the market, they essentially become monopolies. This departure from market competition and the absence of a check and balance system lead to the tyranny of control. When the government is the only provider of essential services, it is easier for them to control citizens' actions, which can end up suppressing freedom and innovation.

The episode explores how government subsidies can often do more harm than good. Governments may have good intentions when they offer subsidies to support the growth of certain sectors. However, subsidies can often lead to market distortions and businesses that are not viable without government funding, leading to an unhealthy degree of dependence on government support. The most successful businesses should be sustained by consumer demand, not tax dollars.

Friedman explains how price controls, often imposed with good intentions, can lead to severe consequences. Price controls artificially cap prices and limit the amount that a seller can charge for a product or service. While it may seem like an excellent idea to protect consumers from high prices, it can lead to unintended consequences. Companies who can't sustain profits enough might stop offering the product altogether. The horizontal consumption of desirable products becomes vertical and is limited to a privileged few, rather than all who might consume these products if the system was unrestricted.

Next, the episode explores monopolies. Monopolies exist when a single company dominates the market, effectively eliminating competition. Friedman explains that monopolies can arise through government intervention by granting exclusive licenses or contracts to a single business, directly or indirectly creating a monopoly. Without competition, companies can raise prices and offer customers less without fear of losing their businesses.

Finally, Free To Choose - The Original 1980 TV Series takes a look at the consequences of strict government regulations. Regulations, often made with the goal of keeping the public safe, can create stifling environments for individuals and businesses. The complexity of regulatory regimes can increase the cost of doing business, making it harder for new businesses to enter the market. Friedman highlights how these regulations promote corruption, and more often than not, regulatory agencies end up being captured by the very industries they are supposed to regulate.

In conclusion, Free To Choose - The Original 1980 TV Series season 1 episode 2 is a great educational program for those looking to deepen their understanding of the consequences of centralizing control in society. Through vivid examples and clear explanations by Milton Friedman, this episode demonstrates how government control often leads to unintended consequences and restrictions on individual freedom and the national economy.