By Steve Denning – No popular idea ever has a single origin. But the idea that the sole purpose of a firm is to make money for its shareholders got going in a major way with an article by Milton Friedman in the New York Times on September 13, 1970.
What’s interesting is that while the article jettisons one legal reality—the corporation—as a mere legal fiction, it rests its entire argument on another legal reality—the law of agency—as the foundation for the conclusions. The article thus picks and chooses which parts of legal reality are mere “legal fictions” to be ignored and which parts are “rock-solid foundations” for public policy. The choice depends on the predetermined conclusion that is sought to be proved. more> http://tinyurl.com/o2ewhov
- Dani Rodrik on Milton Friedman’s Magical Thinking (delong.typepad.com)
- It’s Famed Economist Milton Friedman’s Birthday! Here are His Top 6 Quotes (theblaze.com)
- Happy 99th Birthday, Milton Friedman (cafehayek.com)