Government planning and detailed control of economic activity lessens productive innovation, and consumer choice. Good, better, best, are replaced by "approved" or "authorized." Friedman shows how "established" industries or methods, seek government protection or subsidization in their attempts to stop or limit product improvements which they don't control. Friedman visits India, Japan and U.S.
Interestingly enough, Donald Rumsfeld is part of the ensuing discussion when he was a titan of industry and prior to his stint as Defense Secretary.