Milton Friedman has argued that corporations have no responsibility to society beyond that of obeying the law and maximizing profits for shareholders. Individuals may have social responsibilities according to Friedman, but not corporations.When executives make contributions to address social problems in the name of the corporation, they are doing so with other people''s (shareholders'') money. The responsibility of corporate executives is a fiduciary one, to serve as an agent for the corporation''s shareholders, and to uphold shareholders'' trust, which requires executives (...) to maximize the return to their shareholders, who can then, if they choose, contribute their own money to worthy causes. (shrink)

This paper was motivated by what we see as an inconsistency between a 1988 paper by Brennan and Buchanan expressing concern that public choice might erode public confidence in government and previous work by Buchanan, in particular Buchanan. The one advantage we saw with the 1988 paper was that it, all by itself, is all one needs to dismiss MacLean’s depiction of Buchanan as an ideologically rigid extremist. We also found the same inconsistency occurring simultaneously in Buchanan’s writing in 1979. (...) Yet, based on Wagner, we conclude that such inconsistencies may reflect a strength in Buchanan’s scholarship. (shrink)

The Market Economy: A Reader outlines the characteristics and philosophical underpinnings of the market economy and its usefulness in the allocation of resources. This anthology offers a comprehensive set of authentic, primary source selections that demonstrate how the tenets of classical economic liberalism provide the foundation for an efficient economic system--while also maximizing individual freedom. The readings also provide a structure for analyzing economic and philosophical issues. The book includes selections from several authors who are not economists but whose work (...) is important in terms of their contribution to economic thought, such as Henry David Throeau and Ayn Rand. It also features classic readings such as Adam Smith's invisible hand from his Wealth of Nations, David Ricardo's original explanation of comparative advantage from Principles of Political Economy and Taxation, and John Stuart Mill's eloquent expression of the limits of government in On Liberty. Latter day proponents of private enterprise include Friedrich Hayek, Ludwig von Mises, and Milton Friedman. These authors and others address how the market economy responds to such topical issues as the environment, income distribution, and free trade. (shrink)