The Power of Profits: An Important Lesson from Walter Williams
When it comes to economics, if it is clarity you desire, Walter E. Williams (George Mason University) is your guy. Professor Williams has been explaining the tenets of a free market economy, and articulating a proper understanding of limited government, for decades. Now, to our delight, Dr. Williams has "brought his talents" to Prager University with this newest course "The Power of Profit."
Did you ever wonder why anything gets anywhere? How potatoes from Idaho, for example, end up in a supermarket in New York City? How Texas-raised T-bone steaks end up on the plate of a businessman out to lunch in Chicago? Walter Williams explains why it all depends on one thing -- profit.
Given the current political and cultural climate, this is a controversial claim. But watch the course for yourself, and let me know what you think.
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Jan '11
Re: The Power of Profits: An Important Lesson from Walter Williams
Great things are coming out of George Mason's Econ department. Professor Walter E. Williams is just one of many who are providing some classically liberal clarity from that location. Russ Roberts and Don Boudreaux are other notable voices from there. And there are more, too.
Edited on April 18, 2012 at 9:05pmJun '10
Re: The Power of Profits: An Important Lesson from Walter Williams
It was before my time, but I'm told, the reason that my father got out of the retail grocery business is that he didn't like having to be nice to the nasty ungrateful customers along with the good customers. But, if you don't want the nasty customer, somebody else does. On the other hand, if you work for the government, or don't deal directly with the public, you don't have to be nice. In some cases you don't even have to be civil. And when your workday is done over at the DMV, you can go the the grocery store and be nasty to them. What a deal.
Dec '11
Re: The Power of Profits: An Important Lesson from Walter Williams
I considered applying to George Mason because of Williams and people like him. I didn't because I didn't want to go to the US.
Dec '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Being a small business owner, my first reaction was, "Well, . . . duh."
But then, maybe the reason so few people understand business is because so few people actually know what Mr Williams is talking about.
For that reason, I rescind my Duh and heartily encourage Mr Williams et al to continue educating people on the basic first principles of economics that they should have been taught in grade school but somehow never were.
We must educate and convert a good portion of The Stupids out there, or we're going to drown in the sheer volume of them.
Jun '10
Re: The Power of Profits: An Important Lesson from Walter Williams
CoolHand: Being a small business owner, my first reaction was, "Well, . . . duh."
But then, maybe the reason so few people understand business is because so few people actually know what Mr Williams is talking about.
For that reason, I rescind my Duh and heartily encourage Mr Williams et al to continue educating people on the basic first principles of economics that they should have been taught in grade school but somehow never were.
We must educate and convert a good portion of The Stupids out there, or we're going to drown in the sheer volume of them. · 39 minutes ago
It's not a question of stupid people but rather uneducated people. Worse than that really -- these people are educated but not in how things really work. Marxist thought pervades the curriculum. And this is anti-Capitalism -- plain and simple.
Bill Ayers and his cronies are busy, busy all the time, attacking our country from the inside.
May '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Tolerating nasty customers is a tradeoff for many businesses. Jerks make other people unhappy even when not dealing with them directly. They can ruin the shopping experience of other customers by annoying them with hysterics, making them wait in line during protracted complaints, and making employees miserable (which often translates to lower productivity and not just less enthusiastic customer service).
There's certainly some truth to the idiom, "The customer is always right." But it kills me that so many companies treat it as an absolute. When you hold customers to basic standards of civility, it creates a more enjoyable environment for customers and employees alike, eliminates many hang-ups in service (jerk customers monopolize employee time), and strengthens the loyalty of more thoughtful customers.
Re: The Power of Profits: An Important Lesson from Walter Williams
I just forwarded this to my son at college as rhetorical ammunition. Walter Williams is so clear and concise that even soi-disant college Marxists will have to pay attention. Won't they?
May '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Exactly, Larry. It's not that Americans are commonly uneducated, but rather that they are commonly miseducated.
Aug '10
Re: The Power of Profits: An Important Lesson from Walter Williams
This is a good explanation of Austrian economics' view that the entrepreneur is the central mechanism of an economy.
To keep with the "info burst" format, I would only add two things:
Even though these are important points, I can't really fault the video for avoiding the discussion of politics. It complicates the discussion of "pure" economics. (Even Adam Smith avoided discussing the impact of politics in Wealth of Nations.) But it's a necessary component of the full picture.
Dec '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Aaron Miller
When you hold customers to basic standards of civility, it creates a more enjoyable environment for customers and employees alike, eliminates many hang-ups in service (jerk customers monopolize employee time), and strengthens the loyalty of more thoughtful customers.
This is very true.
Over the years, I have had to fire a few customers, and honestly, I've never seen a down side from it.
Those half dozen customers will take more time and effort to placate than the rest of your clientele combined.
What small amount of profit they produce (they always seem to be the people who order a nickel's worth of product but want a benjamin's worth of service) is quickly negated by the bother and cost associated with dealing with them.
If you add up all the costs and all the profits from those kinds of customers, you will quickly see that it's not only a thankless and never ending proposition, but also a money losing one.
When you fire the bad customers, you have more time to spend on other, more productive things (or customers).
I've also found that I'm far less grumpy afterward too.
May '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Dennis Prager and Walter E. Williams! It doesn't get much better than that!
Jun '11
Re: The Power of Profits: An Important Lesson from Walter Williams
Walter E. Williams is great. I love his explanations, especially taxation.
He wrote a great autobiography.
May '11
Re: The Power of Profits: An Important Lesson from Walter Williams
Absolutely, I very much enjoy both of these brilliant minds, and together, fantastic!
I too am a small business owner, we work very hard, all of what Dr. Williams says is very obvious to me, but I'm on the front line, I'm sure to many this is real news. I too have fired customers that have become much more hassle that is was worth, and I always felt better afterwards. Often the customer is wrong.
Jun '10
Re: The Power of Profits: An Important Lesson from Walter Williams
Aaron and I have had this discussion way back close to the beginning of Ricochet. CoolHand adds to it nicely. No, the customer is not always right but always deserves a fair hearing. My father used to tell me, "Son, sometimes the best business is the business you don't do." There are indeed jobs where you can't make a profit, or customers who don't pay their bills on time, and sometimes there are just plain cheats. But treat people the way you would like to be treated...it's all you can do.