Abstract
N. Scott Arnold has argued forcefully that, for the most part, those who win profits (and suffer losses) in a market economy deserve them. According to Arnold, profit opportunities arise when there are malallocations of resources, which entrepreneurs initiate changes in production to correct. If they succeed, they simultaneously further the essential point of the market system — to meet the needs and wants of consumers — and they make profits; if they do not, then they stand to suffer losses. I argue that the structure of modern corporate enterprises tends to channel income into the hands of those whose entrepreneurial contribution is diminishingly small — namely stockholders — and away from those within the firm who genuinely participate in the entrepreneurial role.
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Grant A. Brown is a Lecturer in the Faculty of Management, University of Lethbridge, and a D.Phil. candidate in philosophy. His Critical Notice ofThe Libertarian Idea, by Jan Narveson, appeared in the September 1990 issue of theCanadian Journal of Philosophy. His ‘Game Theory and the Virtues’ is forthcoming inReason Papers, and his ‘Satisficing Rationality: In Praise of Folly’ is forthcoming in theJournal of Value Inquiry.
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Brown, G.A. Are profits deserved?. J Bus Ethics 11, 105–114 (1992). https://doi.org/10.1007/BF00872317
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DOI: https://doi.org/10.1007/BF00872317