![First, most producers are employees of firms, not owners. Viewed from the vantage point of classical [economic] theory, they have no reason to maximize the profits of firms, except to the extent that they can be controlled by owners. Moreover, profit-making firms, nonprofit organizations, and bureaucratic organizations all have exactly the same problem of inducing their employees to work toward organizational goals. There is no reason, a priori, why it should be easier (or harder) to produce this motivation in organizations aimed at maximizing profits than in organizations with different goals. If it is true in an organizational economy that organizations motivated by profits will be more efficient than other organizations, additional postulates will have to be introduced to account for it. (Herbert Simon)](https://cdn.quotesdtb.com/img/quotes_images_webp/40/herbert-simon-account-additional-398940.webp)
First, most producers are employees of firms, not owners. Viewed from the vantage point of classical [economic] theory, they have no reason to maximize the profits of firms, except to the extent that they can be controlled by owners. Moreover, profit-making firms, nonprofit organizations, and bureaucratic organizations all have exactly the same problem of inducing their employees to work toward organizational goals. There is no reason, a priori, why it should be easier (or harder) to produce this motivation in organizations aimed at maximizing profits than in organizations with different goals. If it is true in an organizational economy that organizations motivated by profits will be more efficient than other organizations, additional postulates will have to be introduced to account for it.
Herbert SimonRelated topics
account additional classical control different easy economy efficient extent harder inducing point problem produce reason should theory vantage work profits motivation nonprofit goalsRelated quotes
The finance conception of the modern corporation, which currently dominates, emphasizes control through the use of financial tools which measure performance according to profit rates. Product lines are evaluated on their short-run profitability and important management decisions are based on the potential profitability of each line. Firms are viewed as collections of assets earning differing rates of return, not as producers of given goods. The firm is not seen as being a member of only one industry. Consequently if the prospect of an industry in which it participates declines, the firm disinvests. The problem for management from this perspective is to maximize short-run rates of return by altering product mix, thereby increasing shareholder equity and keeping the stock price high.
Neil Fligstein
A new development began for relativity theory after 1925 with its absorption into quantum physics. The first great success was scored by Dirac's quantum mechanical equations of the electron, which introduced a new sort of quantities, the spinors, besides the vectors and tensors into our physical theories. ...But difficulties of the gravest kind turned up when one passed from one electron or photon to the interaction among an indeterminate number of such particles. In spite of several advances a final solution of this problem is not yet in sight and may well require a deep modification of the foundation of quantum mechanics, such as would account in the same basic manner for the elementary electric charge e as relativity theory and our present quantum mechanics account for c and h.
Hermann Weyl
A long decade ago economic growth was the reigning fashion of political economy. It was simultaneously the hottest subject of economic theory and research, a slogan eagerly claimed by politicians of all stripes, and a serious objective of the policies of governments. The climate of opinion has changed dramatically. Disillusioned critics indict both economic science and economic policy for blind obeisance to aggregate material "progress," and for neglect of its costly side effects. Growth, it is charged, distorts national priorities, worsens the distribution of income, and irreparably damages the environment. Paul Erlich speaks for a multitude when he says, "We must acquire a life style which has as its goal maximum freedom and happiness for the individual, not a maximum Gross National Product."
James Tobin
Comets are flying around the solar system. As they near the sun, they develop a tail as material is blown off by the solar wind. Most astronomers agree that comets cannot be more than 10,000 years old. They would have completely disappeared by now. Some scientists have recognized this as a serious problem for the theory that the earth is billions of years old, so they have proposed a new theory that new comets are constantly being introduced into the solar system to replace the old ones that burn out. They say they are coming from the "Oort Cloud.” No one has ever seen this Oort cloud, Oort never saw the Oort cloud! There is NO scientific evidence for its existence, but in their mind, this answers the serious problem the short lives of comets creates. There is a simpler answer, of course: the universe is NOT billions of years old!
Kent Hovind
"A frequent source of misunderstanding has to do with the interpretation of fuzzy logic. The problem is that the term fuzzy logic has two different meanings. More specifically, in a narrow sense, fuzzy logic, FLn, is a logical system which may be viewed as an extension and generalization of classical multivalued logics. But in a wider sense, fuzzy logic, FLw is almost synonymous with the theory of fuzzy sets. In this context, what is important to recognize is that: (a) FLw is much broader than FLn and subsumes FLn as one of its branches; (b) the agenda of FLn is very different from the agendas of classical multivalued logics; and (c) at this juncture, the term fuzzy logic is usually used in its wide rather than narrow sense, effectively equating fuzzy logic with FLw.
Lotfi A. Zadeh
