Milton Friedman said the job of business is business and nothing else. This can
ID: 1113816 • Letter: M
Question
Milton Friedman said the job of business is business and nothing else. This can be interpreted as the pursuit of profits for its shareholders and that is it. Please respond to this idea. What do you think? Is this good for the long-run health of the economy? Milton Friedman said the job of business is business and nothing else. This can be interpreted as the pursuit of profits for its shareholders and that is it. Please respond to this idea. What do you think? Is this good for the long-run health of the economy?Explanation / Answer
Milton Friedman said the job of business is business and nothing else.I agree with this statement Business is Business. This so because business is not merly engaged with earning profits but it has other aspects as well such as economic and social responsibilities as well. There are many aspects which an enterprenuer has to keep in mind while doing business. It is going concern concept and to survive and bear its cost it, has to earn profits as well as business is liable to stakeholders and to the common pulic which it deals with. It is is a economic concern beacause of the following reasons mentioned below.
As far as economic point of view is concerned the simple basic factors of production such as land, labor and capital are provided the business so that PPC curve is maintained or achieved. Business in the economy help to create employment, investment and other factors so that the ecnomy may stand on its own, they form as a backbone of the economy to maintain its GDP levels so the purchasing power parity levls may shoot up as result the living standards of the people of economy may rise. It also provides its social responsibility as means of giving back to peole through government awareness and social programmes, it basically depends from economy to economy. As far as long run going concept is concerned for economic growth is concerned business should go on to cover the cost and profits because it requires a lot of to to get the EOQ level whre the business is at no loss or gain situation. In long term effects in economy are more fruitful and realiable ti simply represents the growth as well as potential of the eonomy.
As per my points mentioned above I agree with the above statement and its is a proven fact that business/ t is industries etc are good for the long run health of the economy wether it is a captialistic/socialistic or mixed economy model.