Milton Friedmans The Free Market Theory - 1312 Words

Milton Friedman bases his opinion on businesses and profit maximization on the foundation of free enterprise. â€Å"The free market theory believes that business managers have only one primary responsibility, which is to maximize profit; also, the theory tells that government should not involve in economic matters, except to prevent fraud and coercion† (p. 7) Mr. Friedman argues that a corporation, unlike a person, cannot have responsibility. I disagree with this notion. I don’t think that anyone would engage in a business contract with a corporation if they thought that a corporation was not responsible to pay its bills. So therefore, a corporation can have legal, and moral responsibilities. Milton Friedman uses what, to me, is the key phrase as long as it stays within the rules of the game but does not define the phrase in terms of the legal system. My question is what about the rules of the game that are not so much as even suggested in the law? There are other rul es that companies have to follow if they want to be successful; such as the obvious supply and demand rules in the marketplace. Also, as we have seen with the production of new ideas and technologies, the law follows progressions in technology and thinking. But the principle of responsibility leads the legal cases being decided. Being compliant with the law may keep them out of court, but companies know that holding themselves accountable to a higher standard will keep them in a good place with their customers,Show MoreRelatedCritique of Milton and Rose Friedman, Free to Choose.1587 Words   |  7 PagesEssay question: Milton Friedmans claims that ‘voluntary exchange is a necessary condition for both prosperity and freedom. Carefully examine the assumptions about ‘power, ‘choice and ‘market efficiency that underpin his claim. Give reasons for your agreement or disagreement with him. This essay is a short critique of the theory by Milton and Rose Friedman, Free to choose: A personal statement, focusing on chapter 1. I will argue that Friedman is right in saying, Â… voluntary exchange isRead MoreMilton Friedman and His Contribution For The Economic Field Essay1218 Words   |  5 Pagesliberals believe that ‘’an unfettered market’’ is the most efficient mechanism to satisfy human needs and channel resources to their most productive uses. The minimal government advocacy of an ‘’unregulated free market’’ is founded on an ‘’assumption about individuals being rational, self-interested and methodical in the pursuit of their goals. Adam Smith was not an advocate of pure capitalism. Adam Smith allowed for many exceptions to a strictly free-market economy. The classical liberals advocatedRead MoreEssay on Friedman vs Freeman827 Words   |  4 Pagesconcerns? These are central questions in the field of business ethics. There are two approaches to answering such questions. The first one is Milton Friedman’s shareholder theory of management and the second one is Edwards Freeman’s â€Å"Stakeholder† theory of management, two different views about the purpose and aims of a business. Milton Friedman’s shareholder theory of management says that the purpose of a business is to make money for the owner or the stockholders of the business. Friedman says thatRead MoreThe Ford Pinto Case Analysis1576 Words   |  7 PagesThe Ford Pinto Case Milton Friedman believed a free-market system, in which goods and services are exchanged and controlled by individuals and privately-owned businesses without government authority, was the only way to achieve personal freedom. 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Friedman believes that manager’s foremost objective or evenRead MoreMilton Friedman s Advocacy Of Free Market Capitalism2263 Words   |  10 Pages Milton Friedman’s Advocacy of Free Market Capitalism Team Members: Donaldson, Michael Karambelkar, Tanvi Kote, Anand Mantrawadi, Sushant Sawant, Preeti Shinde, Nikhil â€Æ' Table of Contents Executive Summary 3 Historical Information on Milton Friedman 4 Impact of Cultural Impact with US Based Companies 6 References 8 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 â€Æ' Executive Summary This article is about a teacher and writer turned economist Milton Friedman. HeRead MoreCapitalism And Freedom By Milton Friedmans Pride And Prejudice1527 Words   |  7 PagesBrigid Ueland Contemporary Economic Thought ECON – 3000A Dr. Coronado September 14th, 2017 Capitalism and Freedom by Milton Friedman: The Economist’s Pride and Prejudice The opening line of Milton Friedman’s Capitalism and Freedom reads as an opening line in a Jane Austen novel: â€Å"It is widely believed that politics and economics and separate and largely unconnected; that individual freedom is a political problem and material welfare an economic problem†¦Ã¢â‚¬  sounds similar in structure and toneRead MoreCsr(References)1138 Words   |  5 Pagesand different approaches of CSR within a business context. In addition, several case studies will show the effect of the implementation of CSR and provide a framework for running a business, increasing revenue, sustaining growth and surviving in the market. Beesley, M., Evans, T. (1978). Corporate Social Responsibility. Croom Helm Ltd. 199-202 This source explains the positive aspects of Corporate Social Responsibility. Michhael Beesle and Tom Evans explore the beneficial aspectsRead MoreInsight From Theory And History1638 Words   |  7 PagesEssay 1 Insights from Theory and History When referring to the subject of International Political Economy the main focus of study in this field looks at analyzing and finding reasons for the problems that arise or are affected from the interaction of international political decision, international economics, international trade, as well as different social systems and societal groups. Over the course and development of these systems prominent figures of economic theory and government interactionRead MoreThe Economic And Political Challenges Of The 60s And 701519 Words   |  7 Pagestheir decisions of today. One of the most influential economists who emerged in the sixties was Milton Friedman, who fought against the establishment’s Keynesian view and many of the policies of FDR. He won a Nobel Prize in 1976 for his work on monetary policy with specific beliefs in controlling the federal debt, keeping inflation low, and maximizing the benefits of the economy through a lassiez-faire market. His publications influenced many of Regan’s policies of deregulation and tax cuts and most