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>...Milton Friedman's biggest lie is a law, You are misrepresenting what is called the Friedman doctrine. He didn't claim it was the law of the land. As the
by opo 6y ago
>...Milton Friedman's biggest lie is a law,
You are misrepresenting what is called the Friedman doctrine. He didn't claim it was the law of the land. As the wikipedia article states:
>...The Friedman doctrine, also called shareholder theory or stockholder theory, is a normative theory of business ethics advanced by economist Milton Friedman which holds that a firm's main responsibility is to its shareholders.
This shareholder primacy approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. As such, the goal of the firm is to maximize returns to shareholders.[1] Friedman argues that the shareholders can then decide for themselves what social initiatives to take part in, rather than have an executive whom the shareholders appointed explicitly for business purposes decide such matters for them
https://en.wikipedia.org/wiki/Friedman_doctrine https://en.wikipedia.org/wiki/Friedman_doctrine
- p_l 6y agoI'm not saying he claimed it law. I'm saying that his claim of it being fiduciary duty is taken as law by many, when it's not.
- opo 6y agoThanks for the clarification. When you wrote "Milton Friedman's biggest lie" the implication to the reader is that Friedman is deliberately saying something is true when it is not. As the wikipedia article says, Friedman did not say it is recognized that maximizing returns to shareholders as a fiduciary duty simply saying he thought it should be. As a normative theory of business ethics, people can agree or disagree with the idea. (Just as in a different context, if someone argues prisons should focus on rehabilitation and someone disagrees, that doesn't mean the first person lied.)