“If evolutionary selection is the basis for a belief in profit maximization, 'then we should postulate that basis itself and not the profit maximization which it implies in certain circumstances.”

Source: Three Essays (1957), p. 140-1

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Tjalling Koopmans16

Dutch American economist 1910–1985

Armen Alchian (1914–2013) American economist

Source: "Uncertainty, Evolution, and Economic Theory", 1950, p. 221

“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 A. Simon (1916–2001) American political scientist, economist, sociologist, and psychologist

Simon (1991) "Organizations and Markets:" in: Journal of Economic Perspectives. 5 (2 Spring 1991): p. 28.
1980s and later

“The prevailing economic theory of business enterprise and behavior, the maximization of profit—which is simply a complicated way of phrasing the old saw of buying cheap and selling dear—may adequately explain how Richard Sears operated. But it cannot explain how Sears, Roebuck or any other business enterprise operates, nor how it should operate. The concept of profit maximization is, in fact, meaningless.”

Peter F. Drucker (1909–2005) American business consultant

Source: 1960s - 1980s, MANAGEMENT: Tasks, Responsibilities, Practices (1973), Part 1, p. 59 (1986 ; 45)

“We live in a time when complex ethical questions are easily subordinated to the demands of efficiency, profit maximization, and maintenance or furthering of political power.”

Randal Marlin (1938) Canadian academic

Source: Propaganda & The Ethics Of Persuasion (2002), Chapter One, Why Study Propaganda?, p. 39

“I wish in closing to emphasize how little corporate philanthrophy (the practical meaning of “creative capitalism,” a terrible expression that implies nonaltruistic capitalism is uncreative) is actually philanthropic, in the sense of being driven by altruism rather than by profit maximization.”

Richard A. Posner (1939) United States federal judge

" Against Creative Capitalism, Part Two https://web.archive.org/web/20080821055810/http://creativecapitalism.typepad.com:80/creative_capitalism/2008/08/against-creativ.html" (2008), published in Creative Capitalism: A Conversation with Bill Gates, Warren Buffett, and Other Economic Leaders.

“The profit motive should not be confused with the profit system. By the profit system, of course, we mean the institution of private property in capital goods and the free private enterprise that goes along with it. There is no reason why the "profit motive" should be necessarily connected with the profit system. In a profit system there is nothing to prevent anyone acting on altruistic lines; there is no law that says a businessman must maximize his profits. If a businessman chose to operate with outputs, prices, and wages that yielded him a smaller profit than the maximum, but which he felt were socially more desirable, there is nothing in the profit system that would prevent him from doing this. Nothing in the profit system would prevent the most ardent liberal from refusing an increase in wages, or from accepting an unpleasant and poorly paid job. At the other extreme, there is nothing in a communist system that would do away with the profit motive, or the "advantage motive."”

Kenneth E. Boulding (1910–1993) British-American economist

Source: 1940s, The Economics of Peace, 1945, p. 239

“…the perception of potential threats to survival may be much more important in determining behavior than the perceptions of potential profits, so that profit maximization is not really the driving force. It is fear of loss rather than hope of gain that limits our behavior”

Kenneth E. Boulding (1910–1993) British-American economist

Source: 1980s, Evolutionary Economics, 1981, p. 104

“[The decisionmaking role of the firm has progressed from the neoclassical standpoint of profit maximization to sales maximization, utility maximization, and satisficing. From the Operation Research point of view] …the ideal picture is that someone, presumable the firm that hires the operations researcher, hands him, on a silver platter, an objective function. By talking to the engineers, or by looking into a few scientific laws, he determines the policy alternatives available and also the model”

Kenneth Arrow (1921–2017) American economist

Source: 1970s-1980s, The Economics of Information (1984), p. 55 as cited in: Demetri Kantarelis (2008) " Book Review: Title: Theories Of The Firm 2nd Edition http://www.inderscience.com/books/TOF_american_econ_review.pdf". In: The American economist. Vol 52, Nr 1. p. 117

“Economic theory makes a fundamental assumption that maximizing profits is the basic objective of every firm. But in recent years, profit maximization has been extensively qualified by theorists to refer to the long run; to refer to management’s rather than to owners’ income; to include non-financial income such as increased leisure for high-strung executives and more congenial relations between executive levels within the firm; and to make allowance for special considerations such as restraining competition, maintaining management control, warding off wage demands, and forestalling anti-trust suits. The concept has become so general and hazy that it seems to encompass most of men’s aims in life.
This trend reflects a growing realization by theorists that many firms, and particularly the big ones, do not operate on the principle of profit maximizing in terms of marginal costs and revenues…”

Joel Dean (1906–1979) American economics wrtier

Source: Managerial Economics, 1951, p. 28; Cited in: Peter F. Drucker, Management: Tasks, Responsibilities, Practices, New York: Harper & Row, 1973.

“To minimize suffering and to maximize security were natural and proper ends of society and Caesar. But then they became the only ends, somehow, and the only basis of law — a perversion. Inevitably, then, in seeking only them, we found only their opposites: maximum suffering and minimum security.”

Walter M. Miller, Jr. book A Canticle for Leibowitz

Ch 29
A Canticle for Leibowitz (1959), Fiat Voluntas Tua

“If evolutionary selection is the basis for a belief in profit maximization, 'then we should postulate that basis itself and not the profit maximization which it implies in certain circumstances.”

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Tjalling Koopmans16

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