Friedman argued that social spending by corporations is a form of taxation on _________.

Question

Quizplus · Accepted Answer

Friedman argued that social spending by corporations is a form of taxation on its shareholders because such spending reduces the profits earned by the company, which in turn reduces the dividends paid to its shareholders. This view is based on the idea that the primary goal of a corporation is to maximize its profits and that any spending beyond that is a diversion of resources from the shareholders.

Friedman Argued That Social Spending by Corporations Is a Form