Milton Friedman’s Philosophy

Dec 14, 2006 • Thinking Economically • 216 Views    No Comments

On Milton Friedman…

“At a conference 34 years ago, celebrating Friedman’s 60th birthday, I presented a paper questioning that dictum by noting that the vast part of apparently nonprofit-oriented behavior by corporate managers was really — and necessarily — a profit-maximizing response to business, social or political pressures dressed up to look like something else. For such a strategy to be successful, the behavior had to appear to be nonprofit maximizing, and, of course, had to be called something like “social responsibility.”

Since it was difficult or impossible to distinguish a profit motive from a charitable motive in any particular corporate action, a strong rule against corporate altruism, as Friedman was advocating, would invite judges to examine the propriety of a significant set of managerial decisions. ”
-Article by Henry G. Manne (Wall Street Journal) (11-24-06)

We’re not the only ones who think businesses have other motives.

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