Milton Friedman There are series of Milton Friedman’s videos—“Free to Choose”, talking about that how the United States authorities to develop excessive regulations, implement excessive regulation, establish excessive administrative agencies and spent more money and resources, in the end to reduce the social wealth of the people of the United States. When the U.S. government to intervene in every socio-economic, the consequences are often tragedy although their starting point is good. Friedman also tells us how to extend some of our freedoms, increase our wealth. What give me a deep impression are market mechanism, welfare system and equality. In the article “Market Mechanisms and Central Economic Planning” written by Milton Friedman, he uses an example of pencil to illustrate the function of market mechanism, as known as the function of prices. There are three functions: transmit information, provide an incentive, and determine the distribution of income. All of these three have effect on another, their interrelation is that, when the price transmit information, it also gives an inventive for people, and then people make response to the information and determine who gets what and how much. Friedman thinks that it is impossible to separate these three functions, for example, when the influence of price to the distribution of income disappears, the function of transmitting information and providing an incentive will be both gone. In the video of “Power of the Market—The Pencil”, Friedman analyzes the productive process of a pencil to illustrate the market mechanism. This concise, convincing and compelling case let me realized that the most ordinary pencil was made by so many people and through so many procedures. Actually a small pencil contains big science: the “invisible hand” of the market commands the industries to develop coordinately, and promote cooperation in various sectors of society, therefore, the big machine society can function smoothly. However, the "invisible hand" is just an economic law, the real behind the scenes to promote the economy and make the social machine functioned is actually each of us, each one who carried a certain kind of social production. Another part impressed me is the welfare system. Friedman takes the U.S. Great Depression as an example. In 1932, Roosevelt was elected to be the U.S. president, and his "New Deal" is very helpful to the United States at the time, part of it is the welfare system. In order to better pry more people, he took a lot of measures to support the welfare system. Thus, the modern welfare state began to appear. However, the emergence of the modern welfare state resulted in increasing pressure on the country. The welfare system is to use the money of the middle-aged to raise the elder, and the young as a preparatory team. Then there will be a problem that our society is developing, the group who need the welfare will be bigger and bigger because of the population aging, the natural growth of population and the population immigration policy. In particular, the UK and Sweden who known as whole welfare state, they are facing growing pressures of economy and the increasing discontent of society. Finally, equality is also a major point impressed me, Friedman introduces two aspects of equality: equality of opportunity
Milton Friedman, was born in July 12, 1912, in Brooklyn new york. He came from a Jewish
Family and became economist, statistician and a writer. He attended Rutgers University, where
he earned his B.A. at the age of twenty. He went to earn his M.A. in the University of Chicago in 1933.
and his PhD in 1946, from Columbia University. At the age of 40 he was award with the John Bates
Clark Medal honoring economists, which is an outstanding achievement in the economic…
Businesses in America are managed in many different ways. Is there a correct, moral, or wrong
way? I will discuss the view of two men Milton Friedman and John Mackey, who are both trying to
show that their way is the correct and ethical way of owning and running a business, and that others
should follow. Milton Friedman states “there is only one social resposibility of businesses, to use its
resources and engage in activities designed to increase profits so long as it…
Need or Greed?
New Protocol: How Drug’s Rebirth as Treatment for Cancer Fueled Price Rises
Immanuel Kant-Kantian Deontology
John Locke- The Justification of Private Property
Adam Smith-Benefits of the Profit Motive
Milton Friedman- The Social Responsibility of Business Is to Increase Its Profits
Thesis: An examination of the case study New Protocol: How Drug’s Rebirth as Treatment for Cancer Fueled Price Rises relies heavily on a keen understanding of the social and economic…
University of Phoenix Material
Historic Foundations of Economic Thought Matrix
|HISTORIC FOUNDATIONS OF ECONOMIC THOUGHT MATRIX |
|Individual |Time Period |Influences |Works/Contribution |Impact |
|Plato | | |Plato was a great philosopher, |Plato has had an |
A Study of The Link Between a Corporation’s Financial
Performance and Its by Curtis C. Verschoor
Commitment to Ethics Journal of Business Ethics 17: 1509–1516, 1998.
ABSTRACT. A number of studies have tested the relationship between a corporation’s social and ethical performance and its financial performance. In contrast, this is the first study to demonstrate a link between overall financial performance and an emphasis on ethics as an aspect…
4. Friedman view of business social responsibility 3
5. Having a look at Sasol’s Social contribution 5
6. References 6
There are a number of advantages and disadvantages of strategic management. To me the advantage that stood out was the financial advantage organisation can achieve by implementing a strategic planning process. There are evidence of this as a study was done on banks in the United States - they do…
have tried to perfect it over the years. When it comes to thought of economics and how money changes hands and how to make sure that money retains the value it is supposed to have there are so many different ideas of how to handle it. Karl Marx, Milton Friedman, Adam Smith, and Thomas Malthus were all forward thinking people who thought they had to key to fully understanding our economic world and how to handle it regardless of the situation. Each one had their own thoughts and ideas varying in style…
only private ownership and not government ownership. According to Nobel Prize economics Milton Friedman, free markets, capitalism and The Do Nothing Principle also promote individual freedom and contribute to bringing down dictatorial governments that mistreat its’ citizens. Today, many Asian dictators adopt free market policies to increase their wealth and power, but hope to deny the theory of Milton Friedman that free markets will lead to their overthrow and downfall.
Communist China’s leaders…
Milton Friedman would have felt that the decision made was to be decided upon by the government and paid with tax dollars (Halbert and Ingulli, 2012, Chapter 1, p. 11). However, the goal of a business is to be profitable for the shareholders, and not to simply pay the CEO. He would not have felt that providing the CEO’s with large compensation was acceptable because the shareholders were not benefiting from these pay packages.
Friedman would have evaluated the legality…
responsible treatment of employees, customers, and the community” (Friedman, 1989).
First, instead of closing stores in urban less desirable neighborhoods, Company Q can continue to operate in these locations to show they are concerned with all their communities – not just their most desirable communities. One of the main areas in which businesses can become involved to protect and improve the welfare of society is in urban affairs (Friedman, 1989).
Second, customers have requested healthier options…