Economics Archives

The Social Responsibility of Business: Increase Profits

What does Milton Friedman mean by “the social responsibility of business is to increase its profits?” How does this differ from other views of corporate social responsibility? Corporate social responsibility is the idea that as large corporations with a lot of money, companies have a duty to uplift their communities and society as a whole. In Capitalism and Freedom, Milton Friedman argues that the social responsibility of business is to increase its profits. Read more about Milton’s Friedman’s views and why the social responsibility of business is to increase its profits and nothing more.

The Relation Between Economic and Political Freedom

What is the relation between economic and political freedom? How does Milton Friedman explain this connection in his book Capitalism and Freedom? According to Milton Friedman, the relation between economic and political freedom is well established. In order for people to truly have freedom, they have to be able to live without restraints on their economic activities. Read more about the relation between economic and political freedom below.

Why Commodity Standards Don’t Work

What are commodity standards? Is this system valuable for economic development? Commodity standards refer to economic systems where the country’s financial reserve is held in commodities, like gold. The amount in the reserve is tied to the value of the commodity. Read more about commodity standards and how they effect economies.

The Problems of Trade Unions & Economic Drawbacks

What are the problems of trade unions? Why does Milton Friedman argue that trade unions can be harmful to industry? The problems of trade unions arise when unions become so powerful that they gain full control of the labor market. Additionally, labor unions can operate as wage suppressors, hurting workers and the market. Read more about the problems of trade unions according to Milton Friedman.

The Racial Wealth Gap and Conservative Denial

What is the racial wealth gap? How does the denial of the racial wealth gap inform the beliefs of conservatives and the Tea Party? There is statistical evidence to suggest the existence of the racial wealth gap. However, Tea Party conservatives cite wealthy Black celebrities as evidence that there is no black wealth gap and falsely claim that Black people are getting ahead while whites are losing their status. Read more about the racial wealth gap and what it means for conservative politics.

Trickle Down Economics and the Failure to Create Jobs

Is trickle down economics a failure? Why do people continue to support it? Trickle down economics is widely considered a failure. One example is governor Bobby Jindal’s term as governor of Louisiana, where he promoted anti-environmental and big business policies. Read more about how trickle down economics is a failure and how deregulation furthers the problem.

How Does the Central Bank Control Money Supply

How does the central bank control money supply? Why does the central bank control money? When considering how to economy works, many people ask “how does the central bank control money supply?” Most countries have some sort of federal reserve that ensures banks have liquid capital and manage how they conduct business. Keep reading to answer the question “how does the central bank control money supply?”

Milton Friedman: Inheritance Tax Is Immoral

What is an inheritance tax? What does Milton Friedman say about inheritance tax? Inheritance tax is paid when a family member dies and leaves you money or assets. You then pay a tax on that wealth. According to Milton Friedman, the inheritance tax is useless and unjust. Read more about Milton Friedman and the inheritance tax.

Capitalism and Inequality: Benefits of Market Power

What’s the connection between capitalism and inequality? Can capitalism help put a stop to discrimination? Capitalism and inequality are often cited as going hand in hand as leading to discrimination. But Read more about capitalism, inequality, and how Milton Friedman believes the free market can help stop discrimination.

Economic Anxiety in White Conservative Voters

What is economic anxiety? How does it relate to the beliefs of white conservatives? Economic anxiety is one factor in why white conservatives continue to vote Republican. While the blame for the loss of wealth might be mislaid, the undeniable fact is that many white working-class people have seen their wealth decline over the years. Read more about economic anxiety and what it means.