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About this quote

What does it mean?
A free market still needs government to set rules and enforce them.
In plain terms
Markets need government to define and enforce rules.
What can you take from it?
Government acts as a rule‑maker and umpire in a market economy.

Where it applies

  • policy design
  • business compliance
  • economic education

Putting it to work

  • establish clear regulations
  • ensure impartial enforcement
  • maintain transparent rule‑making

Questions to consider

  • What is the ideal balance between market freedom and regulation?
  • How can governments avoid overreach?

Another view

Too much government can also distort markets.

More from Milton Friedman

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