If diversity increases profits then capitalists’ll do it already

Source: Adam Smith Institute
by Tim Worstall

“To remind of that idea derived from Adam Smith — capitalists are lazy, dumb and greedy. Not that he put it in quite those terms. Dumb in that finding the new profitable idea is difficult, lazy in that it’s an effort, greedy in that if someone else finds one then they’ll all copy it. This is, after all, why we have patents. We also have Gary Becker telling us that taste discrimination – that’s the kind that’s just based upon gender, skin colour, prejudice in fact – is a money loser. It’s leaving rare and scarce talent on the table for someone else to use as a result of the prejudice of the discriminator. So, we’d expect capitalists to not practice taste discrimination. For it’ll quickly become obvious that it’s a money loser, people ‘ll stop doing it.” (04/03/24)