In 1970, economist Milton Friedman declared that the only social responsibility of business is to increase profits. Half a century later, his doctrine still shapes our economy, our politics, and our daily lives. But what does “profit first” really mean for workers, communities, and democracy?
In this episode of American Socrates, we dig into Friedman’s famous essay and its consequences. We explore how corporations gained legal power as “agents” of shareholders, why critics like Joseph Stiglitz and Elizabeth Anderson say this logic ignores workers and communities, and how real-world disasters—from Boeing’s 737 Max crashes to Volkswagen’s emissions scandal—show the dangers of profit-maximization at any cost.
We also examine today’s debates around ESG (Environmental, Social, Governance) investing, corporate greenwashing, and bipartisan laws that protect creditors while leaving working people vulnerable. Along the way, we ask the hard question: if corporations are designed to pursue profit above all else, how can we make them accountable to the people whose lives they affect every day?
