Question

Research the following topic and post a short (250-word) response to the prompt on the discussion board: Research the New York Times Magazine, September 13, 1970 article written by recognized economic expert Milton Friedman titled "The Social Responsibility of Business Is to Increase Profits". Do you agree or disagree with his conclusions? Can goals of a business sometimes conflict with the goals of society and/or a community?

Answer 1

Yes I do agree . For an economy to work efficiently using all its resources to full potential , businesses or firms must have that profit maximizng and efficient production attitude . A society where there is fair competition , no frauds or impediments to competition can use its resouces to the fullest . Increasing profits not only benefits the business but also increases national income , returns to inputs etc . Increasing profits must be the sole aim of business for growth of the economy .

Now goals of a society is not only economic growth but also development and social welfare . Benefits such as health , education etc if privatized leads to higher prices and deprives the poor from them . In such areas government must step in . Policies to reduce inequality in income , provide social security and benefits should be looked after by the government .