Milton Friedman and Capitalism - Essay Example

In the lecture presentation, Friedman and the student differ on the principle. According to him, people respond to things according to their self-interest. Morality and economic policies in business should be in the company. However, the student feels that the principal is entirely wrong. He cites the case of Ohio electricity disconnected the power for a man for failing to pay the bill and consequently died. He is of the view that companies should not make profits at the expense of exploiting the community. He further goes on to highlight the case of Ford, which manufactured a model of vehicle which lacked sufficient safety measures increasing the vulnerability of the passengers to serious injuries. He felt that it was the responsibility of the company to protect the buyers since they had the necessary resources at their disposal (Milton, pp.1-3).

Friedman counters the arguments claiming that the electric company is a separate legal entity and could not be held liable for the death of the man. Instead, his immediate neighbors should have been accountable. The company incurs costs that it must find the means to finance. Friedman is correct because it may be economically unsustainable for organizations to behave like charitable organizations. In addition, if goods and services were provided free of charge then the core reasons for establishing it lacks. Business is all about profit making (Milton, pp.6-8). Read More