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Tuesday, May 5, 2015

Never trust a businessman explaining his business



http://upload.wikimedia.org/wikipedia/commons/1/1a/Wealth_of_Nations.jpg

Adam Smith wrote a fundamental rule about businessmen: never trust them when they explain their business. Because he has a vested interest in the answer, they can't be completely trusted to explain his business objectively.

No business wants to pay more for labour, give more in dividends, have restrictions placed on their trade. So one cannot take their words as gospel.