Milton Friedman -- a Living Economic Legend
Even those individuals who consider him to be a negative influence upon economic theory cannot deny the impact of Milton Friedman had in deflating the once-uniform confidence economists invested in Keynesian theories of macroeconomics after Keynes' theories of government spending were credited with ending the Great Depression. Unlike Keynes, who advocated sharp, short-term increases in government spending to ameliorate the effects of a recession, Friedman argued against government intervention in the economy. Friedman claimed that the forces of a free market and the Federal Reserve Bank's gradual, continuous increase in the money supply would promote economic growth and thus counter the dangers of a recession. (Silk, 2005) This was at the heart of Friedman's 1957 contributions to economics, called the "Permanent Income Hypothesis" in consumption, that suggested that the more money existed in the economy, the more individuals were willing to spend, in contrast….

Milton Friedman: Journey From Past to Present
Milton Friedman, the world's famous economist was born in 1912, in a poor Jewish Immigrant family who shifted to Brooklyn in the late 1980s. After completing his public school studies, he joined utgers University in 1928 (Friedman and Friedman 1998, p.25-27).

During his early study in the field of economics, he was continuously in contact with the theorists like Mitchell, Burns and Kuznets; therefore he started taking interest on the macroeconomic issues like the business cycles and the monetary theory and was less concerned about the microeconomic issues.

Friedman was a passionate advocate of the free market economy. He made great contribution to the field of economics by writing books, journals, articles in which he presented his own theories and ideas. His theories and writings played an important role in shaping the economy. He played a role of a public intellectual; and conveyed his thoughts in….

Profits
Milton Friedman famously proposed in 1970 that the "social responsibility of business is to increase its profits," and that notion of business ethics is still prevalent today, though the debate about the subject has yet to abate. Friedman was writing in response to a growing call for increased social responsibility from businesses as the result of the strong social changes in the late 1960s, but his argument was underpinned by concepts such as social contracts and agency theory. Managers, he argued, are agents of the shareholders. Shareholders are assumed to be purely rational, and therefore are only investing for profits. They can take those profits and do whatever socially responsible things they want to do with them, but it is not the role of the manager to make those decisions for the shareholders. The role of the manager is simply to earn those products. Friedman did add the caveat that….

This led to the rise in monetarism and the tax cuts promoted by President Reagan, the fiscal conservatism of the Volker-Greenspan Federal Reserve System, and the economic prosperity of the 1980s and 1990s (Ross, 1998).
Currently, monetarism and the importance of monetary policy in determining economic growth and stability are widely accepted. However, it is important to note that Friedman himself has cautioned against assigning to monetary policy a larger role than it can actually perform (Friedman (a), p. 99). hile admittedly, changes in money supply can affect employment and output in the short run, Friedman advised against an over reliance on the supply of money as a mechanism to stimulate investment, employment and demand to avoid unacceptable levels of inflation. Instead, he advocates, that these economic objectives are better achieved through allowing the free market to operate freely.

orks Cited

Biz/ed. "Milton Friedman - Theories." Accessed April 26, 2005:

http://bized.ac.uk/virtual/economy/library/economists/friedmanth.htm

Friedman, M. A….

Friedman is considered to be one of the more influential thinkers of his time and "Milton Friedman on Economics: Selected Papers," is a collection of much of his work. Many of the enclosed papers were originally published in the Journal of Political Economy. The work opens up with his 1977 Nobel Lecture and then spans a great part of his life and career. There were some works in the collection from as early as 1948 through 1990. Because he was so influential over the course of his career, this series of letters and works provides a great opportunity to not only get an introduction into his line of reasoning, it also provides a historic blueprint of detailed economic thought. Milton Friedman offers clues about the twentieth-century's economics and political policies.
Milton Friedman is considered to have been one of the great economic thinkers of our time and he was obviously greatly….

Milton Friedman, "Social Responsibility"
Milton Friedman is absolutely blunt and direct in his 1970 critique of the notion that businesses have "social responsiblities" which require them to look beyond their balance-sheets at the real-world effects of their activity. The title of his article states his thesis outright: "The Social Responsibility of Business is to Increase its Profits." Anyone who states otherwise, says Friedman, is "preaching pure and unadulterated socialism" and leans on ideas "that have been undermining the basis of a free society these past decades."

Yet I think that Friedman's argument hinges on his selective and highly tendentious definition of terms here. Friedman switches between political and ethical definitions of the various concepts, so "pure and unadulterated socialism" is used purely as a scare tactic in his opening: in reality, socialism (whether in diluted or concentrated form) has nothing to do with the public calls for businesses to increase their social….

Accounting and Ethics
The stakeholder model should be implemented in combination with Friedman's shareholder model

In his article, "The Social esponsibility of Business is to Increase its Profits" published in 1970's reputed "The New York Times" Magazine, Friedman debates in favor of precisely what the article's title states. He alleged that corporate social responsibility (CS) was a diversion from the economic rudiments of business that helps in capitalization of profits and yields to shareholders. In his article, when he raised the description of advocates of CS he stated, "The businessmen believe that they are defending free enterprise when they declaim that business is not concerned 'merely' with profit but also with promoting desirable 'social' ends; that business has a 'social conscience' and takes seriously its responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else may be the catchwords of the contemporary crop of reformers (Kristin, 2009; pg 7)." Most opponents….

However, a corporate executive, according to Friedman, would have to spend other people's money for a general social interest, by means of reducing returns to stockholders, lowering worker wages, or raising the price of products. However, herein lies the basic flaw of this author's reasoning, for the social responsibility of the business as it falls on the executive is to make sacrifices for the benefit of others. In a position of such power, a business executive needs to make policy decisions that might actually cut into his own profits, as opposed to the wages of the workers or the wallets of the consumers. While this author may argue that the only responsibility of the business is to make profits using all available resources, engaging in open and free competition without fraudulent activity, a business is a controllable extension of those who own and run it, and just as we….

This is because they are interested in increasing their overall bottom line numbers at all costs. While, their American counterparts want to see an increase in market share and address a host of social issues. As they believe that the community is playing a vital role in helping to support the organization and its success. This is significant, because it shows how American entrepreneurs want to offer everyone some kind of program that will help to address a host of problems affecting their communities. (Studwell)
A good example of this can be seen by looking no further than idu.com. What happened was the firm was established by Google based on a desire to rapidly expand into China. At first, Google was considered to be the dominant player in the industry. However, the Chinese government began to impose a host of restriction on what content was available. Reluctantly, the company agreed….

For example, AIG got into a lot of trouble during the Great ecession because it was paying retention bonuses so that people about to be laid off would stay on but this was controversial because AIG got bailed out by the federal government. Even though the bonuses were contractually obligated and evne though they served a specific purpose, the vitriol and invective was toxic. This despite the fact that government-serviced entities that were ALSO bailed out the government (Fannie Mae and Freddie Mac) did the same exact payouts for the same exact reason and the outrage for those firms was a lot less even though they cost the taxpayers a whole hell of a lot more money than AIG ever has or probably ever will. In short, businesses operating within the law should not be harassed or treated unfairly but it can happen.
Conclusion

In short, Mackey made some good points….

ur place work . 4. 2 detailed examples organizations u friedmans theories applied.
Two of Milton Friedman's main points referred to the belief that all companies had the primary objective of registering profits, and also that it was normal and natural for unemployment to exist to a specific degree; it if were to be entirely eliminated, inflation would be created.

As opposed to Friedman's view, Archie Carroll believes that the primary scope of the economic agents in that of operating in a socially responsible manner. Additionally, the more modern economist states that the focus of corporate social responsibility is the natural response to the evolution in the society and the growing need of business agents to balance the needs of their multiple stakeholders (Carroll, 1991).

3.

If one were to select the principle to implement within the workplace, this would be the emphasis on corporate social responsibility, due to the particular fact that….

Another well-known economic analyst Milton Friedman, believed that everything wrong in the world could be righted with free market trade. He promoted such ideas of private utilities and removing government involvement from society and business in every conceivable area (the Great Experiment: The Facts About Globalization (http://www.americanassembler.com/issues/globalization/index.html).

ecent studies indicate that such ideas, while looking good in theory are not conducive to successful society. California is a classic example of what can happen if free market utilities are allowed to roam unfettered by government standards of any type.

Friedman believes that complete free growth opportunities without boundaries, such has been the case in some areas of globalization actually harm the worldwide economy and in turn society in general (the Great Experiment: The Facts About Globalization (http://www.americanassembler.com/issues/globalization/index.html).

Conclusion

While globalization has been occurring since the beginning of time the recent expansion of electronic communication has caused the concept to explode with growth. Free trade is….

The authors use everyday examples, such as "investment in a newly formed small business" to make their economic processes more understandable to anyone who understands modern business, and this is one of the things that makes this book so readable, and so fascinating, even for someone who might not be that interested in economic theory and practice.
The Friedman's support many ideas that would reduce the authority of government in many economic areas, including the "negative income tax, the volunteer army, an improved method of auctioning Treasury securities, the monetary rule for achieving price stability; the voucher system for education, the flat tax, and flexible exchange rates" (Jordan et al. 199). It is quite amazing to see just how many of these Friedman ideas have made their way into our business and political world, including the volunteer army, the educational voucher system, and flexible exchange rates, to name a few.….

Business Ethics
Drucker's approach to business ethics revolves around the belief that business people are rational actors who, as agents for the shareholders, will evaluate all decisions on a cost-benefit basis. His view of business builds upon and only somewhat contrasts with that of Milton Friedman, who in 1971 famously espoused that the "social responsibility of business is to increase its profits." This paper will analyze these two views, showing how they are similar and how they are different from one another.

Although Friedman's editorial has been distilled into its pithy headline, his view on the subject of business ethics was complex. Friedman viewed business managers -- executives -- under the agency theory whereby they would be accountable only to the shareholders. Under this view, managers would and should only focus on enhancing shareholder wealth as the underlying philosophy of their actions. Friedman allowed, however, that the actions under this dictum should….

A capitalistic society that provides open and free competition did not bring about Enron and similar debacles. It was the second part of Friedman's statement: "without deception or fraud" that led to such situations. It was the greed of several individuals who misreported their profits to get a larger part of the pot. Unfortunately, there will always be individuals like this -- it is human nature. That does not make the whole system corrupt. One can say that the competition inherent in the capitalistic enterprise encourages such behavior. Hoarding by one of the cave dwellers would never work. The hope is that lessons are learned from situations such as these -- that nothing works perfectly.

ichard E. Hattwick, professor at Western Illinois University and co-founder of the American National Business Hall of Fame concludes:

competitive market situations encourage the reasonably high standard of business ethics called the ethic of justice. The financial….