There was a lot to respond to, so I'll just go from here.Actually, he said that some of the methods used by McCarthyism were bad, his comments seem to indicate that he approved of the movement as a whole. Where he draws the line between stopping communism and protecting free speech (which I assume he does support on some level) remains to be seen.
Communism is SO BAD as to justify A LOT in hunting it down and stamping it out. Kind of like how "punching Nazis" is accepted (by some at least), "punching Communists" should be just as accepted if not more so! It's THAT destructive of a system. So yes, the ends DO actually justify the means on many many things in life. Not completely, not blank check, but yes, the more the threat, the greater the response. If somebody pulls a knife, you are also justified in pulling one, if not a gun. Communism is a plague. Harsh responses ARE justified. Can it go too far? Yes it can! Did McCarthy go too far? Probably.
Just as it has been repeated here, free speech is from government reprisal, not private. Should businesses as a whole also endorse it? Yes they should, but it is MUCH more important that the government isn't curtailing it, or "encouraging" certain views via grants (or lack thereof) either. So I believe in robust freedom from government censorship, but if others say "I'm not associating with you because you're a communist, and I'm not buying your stuff either" then that's a private citizen's (or business) choice.
As for economics, Gas's point above stands. When there's robust competition, things go great. Government's main job should be intervening when things get too big for anybody but them to take down. To quote whomever said it, "Too big to fail is too big to exist." That should be the primary role of government in the economy.