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ECO..Profits and morality - Assignment Example

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In the example regarding payment of bills, Milton Friedman asks the audience to assume for a moment that the electric company does not cut the connection upon non-payment of bills…
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ECO..Profits and morality
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ECO..Profits and morality

This is because there will no longer be a motivation to keep doing paying or else the electric supply will be cut off. However, in this case of freedom to decision-making involving consumption has led to a negative outcome reducing the wellbeing of the capitalistic electric company that is there for profit.
Another example mentioned involves Ford Pinto model of car and is a quite well-documented incident regarding the defective rear engines of the car that could catch fire following collisions (Sidewinder77, 2007b). If people were given the freedom to decide about the production and buying variables of the car, most individuals would not be willing to pay a higher price for a safer car. This decision would ultimately increase the risk of being susceptible to death by a faulty car because people, if given the freedom to decide, would not always choose rationally thereby reducing overall wellbeing of the ... Read More
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