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Kenneth J. Arrow's article on social responsibility and economic efficiency examines the limitations of economic theory in relation to morality. He critiques idealized assumptions made by economists, particularly the notion that businesses inherently benefit society through profit maximization. This perspective echoes Milton Friedman's view that allowing businesses to focus on profit leads to broader societal benefits, suggesting that regulation or encouraging moral actions is unnecessary. According to Arrow, the optimal approach is to permit businesses to operate freely, as their pursuit of profit ultimately contributes to the social good.
