Aug
23

Bogus Benevolence

The Friday File: Organizations often promise that 10%, 20%, or even all profits go to charity, while other firms promise that a percentage of revenues go to charity. Of course charitable giving is always good, but as a curmudgeonly economist, I much prefer the latter approach because it gives firms no incentive to boost salaries and bonuses to reduce or eliminate profits while still appearing to be benevolent.

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