Milton Friedman Accused of Making Corporations Greedy

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The New York Times brings you news that’s news to you: Before evil libertarian Milton Friedman came along, corporations did nothing but help the people in pursuit of “social responsibility.”This is the implication of an overkill series of think pieces and a roundtable hooked to Friedman’s essay “The Social Responsibility of Business is to Increase its Profits,” which the Times itself ran in 1970. The newspaper now insists, without rigorous evidence, that this article was “arguably the most consequential economic idea of the latter half of the 20th century.” (It also argues that businesses are now turning against the idea that their only social responsibility is to their shareholders.)It would require a lot more facts and analysis than the Times chooses to present to prove that corporations decided in the past 50 years to try to make profits their main concern because of a New York Times article by an economist. People starting and running businesses have traditionally done so to make a living and to make the business do well; attributing this to Friedman’s “theories on the primacy of shareholders and the priority of profits” requires more business history and social history than the paper is able to do. …

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