Shareholder vs. Stakeholder capitalism

The Social Responsibility of Business Includes Profits

Profits these days are often seen as a dirty word, but it is wrong to demonize profits. A company’s responsibility is not...

Managers Should Satisfy Only the Ethically Permissible Preferences of Shareholders

Oliver Hart and Luigi Zingales have proposed a revision to the dominant model of the objective of the firm, most famously defended...

What Stakeholder Capitalism Can Learn From Jensen and Meckling

Jensen and Meckling’s 1976 article is an academic classic, but heavily criticized by stakeholder capitalists for arguing that corporate structures should be...

Pentagon Report Points to Two Major Risks to National Security: Consolidation and Shareholder Capitalism

A Pentagon report released earlier this month warns that concentrated supply chains, offshoring, and a "business climate that has favored short-term shareholder...

eBook: Milton Friedman 50 Years Later, a Reevaluation

Over the past couple of months, ProMarket has hosted a lively debate on whether Milton Friedman was right or wrong when he...

Corporate Responsibility and The Two Minds of Milton Friedman

Milton Friedman had two inconsistent minds: That of an economist and an ideologue. The view that maximizing profits without constraint is a...

To Make a Difference, Businesses Must Have a Stake in Social Missions

Despite their promises to change the world for the better and remedy social ills, the truth is that corporations are rarely designed...

Friedman’s Legacy: From Doctrine to Theorem

Friedman was more right than his detractors claim and more wrong than his supporters would like us to believe. However, after 50...

The Purpose of Business is to Solve Problems of Society, Not to Cause Them

Claims that a stakeholder-focused system of corporate governance cannot succeed in the US are perverse because they take as given that corporations...

Can Institutional Investors Solve Societal Issues When Governments Fail to Do So?

A new study looks into the social costs associated with private prisons to show that privatization may come with social trade-offs when...

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Economic History Series

When Milton Friedman Sided With Keynes Over Hayek on Inflation

Nicholas Wapshott

In an excerpt from his book Samuelson Friedman: The Battle Over the Free Market, Nicholas Wapshott explores the disagreements between Friedman and...

Antitrust and Competition

Countering Employer Monopsony Power With Fundamental Labor Rights

Peter Norlander

Labor policies grounded in the fundamental rights of workers can reinforce the aims of a proposed labor antitrust agenda by limiting a...

News

Call for Applications: The Stigler Center Affiliate Fellowship

ProMarket writers

The Stigler Center is seeking candidates for its inaugural Affiliate Fellows program. The George...

Antitrust and Competition

How the Rise of Labor Market Power Helps Explain the Fall of US Manufacturing Employment

James Traina, Ivan Kirov

A new working paper explores the increase in labor market power in the US and what’s driving it. It shows manufacturing workers...

Economic History Series

How Manufacturing’s Lobby Won and Lost its Political Influence

Jennifer Delton

What happens when supporting capitalism hurts capitalists? Do business lobbies ever control the economy to the extent we think they do? The...