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Wisdom from Vernon Smith

In response to my note to Ms. Lori Baio on the dangers of so-called “stakeholder capitalism,” my emeritus Nobel-laureate colleague Vernon Smith e-mailed to me this bit of wisdom (shared here with Vernon’s kind permission):


May each of us as individuals and as firms collect more in revenue for what we produce than we incur in cost for the resources consumed in producing that revenue.

Those who do not profit are a burden on others. Those who do account for the wealth of society.

May every person, every economic entity, be a center of profit.