Friday, August 08, 2003


Now that they have found that they cannot abolish private business, the Left are trying to weaken it as much as they can by way of regulation and other means. Their idea that businesses should be “good corporate citizens” is part of their attack:

Corporate Citizenship: A Tax in Disguise: "The first problem with enforced Corporate Social Responsibility is that it is economically inefficient. In a free market, companies maximize profit by moving resources from a low to a high value; providing what consumers want. In contrast, if action has to be forced by regulation then governments mandate that resources be spent on services that the public does not value, or does not value highly enough to voluntarily pay the full cost. Resources are therefore diverted into lower-value outputs, leading to a reduction in overall welfare. This is done for the benefit of politicians, bureaucrats or their supporting pressure groups."

Milton Friedman probably said it all in this classic article from the 1970s: The social responsibility of business is to make profits


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