There is much talk in our time about freedom and economists have not been silent on the subject. It is apparent that in discussing the meaning and conditions of freedom they are moving beyond the limits of economics “proper” into the realm of political economy, which as O. H. Taylor has recently pointed out “… involves the latter [economic science] plus all other social or human sciences, plus philosophical, ethical and political reflection, plus thoughtful study of human history.” And since freedom involves value judgments, “ … is itself an ethical category …,” economics, in so far as economists concern themselves with freedom, cannot be regarded as a neutral science. There are deep waters here, deeper than many of freedom's advocates seem to realize. It is argued in this paper that while many economists writing about freedom will pay lip-service to the ideal of political economy as described by Professor Taylor, the strong tendency to remain economic scientists in thought and method is likely to produce in the end a flabbier economics and very little new light on freedom.
An approach very common in economic literature is to identify extremes of (i) freedom in thought and behaviour and (ii) authoritarian control, and then to suggest some happy middle way, preferably one which combines the “best” features of each. Freedom is identified with change, uncertainty and “progress” (these somehow identified with competition in free markets) and its absence with concentrations of power which threaten essential liberties. The problem appears to be that of reconciling liberty with stability, freedom of competition with an unseemly demand for security. To make the best of both worlds there must be some planning for stability, but not too much planning because it is so debilitating. Extremes must be avoided, some compromise sought; it is as simple as that.