
ProMarket: Why Martin Wolf Changed His Mind on Milton Friedman
Capitalisn't
00:00
What Is the Difference Between Short Term and Long Term?
In 1971, Lewis Powell writes a memorandum in which he says that the goal of a corporation is not just to maximize profits. The way he sort of declined is to say companies should get involved into politics. If you'd simply try to maximize profits in the long term, capturing the government isn't the best way to maximize profits over 200 years. Bethany: I might disagree with you because if you do capture the government long term, you weaken democracy and you weaken the very thing that legitimizes your existence.
Transcript
Play full episode