Today Milton Friedman passed away. A promoter of free markets and an outstanding economist, Friedman has influenced me when I was still a student in China. In late 1980s, as economic reform was underway in China, intellectuals there were greatly influenced by the work of Hayek and Friedman. These authors have clearly argued for the benefit of free market against the state. Their works have quickly gathered followers in China as the magic power of free market demonstrated itself there after 1978.
I vividly remember reading Friedman’s small book on the invisible hand of market. He talks about the how a small pencil involves people around the world, from timber in Oregon, to rubber in Malaysia, to materials in South America. The invisible hand of market has brought these people together to create one single product, and people benefit others by pursuing their self-interest.
The United States is such a thorough free market today that people lost the appreciation for its power. Comparing to other countries, US has the highest number of new companies, and the highest number of entrepreneurs. All the industries are private even including defense manufactures. The federal government and state governments are all business friendly, giving a lot of incentives to allow business to flourish.
