The Mexican Fisherman and Adam SmithWhile visiting a small Mexican fishing village, an American saw a fisherman dock his boat and complimented him on the quality of his fish. When the American asked how long he fished every day, the Mexican answered, “Not very long.” He went on to explain that a small catch was sufficient for the needs of his family. “But what do you do with the rest of your time?” asked the American. “I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, have a few drinks, play the guitar, and sing a few songs. I have a full life.” Rather impatiently the American responded, “Look, I have an MBA from Harvard and I can help you! You should fish longer every day and sell the extra fish you catch. With the extra revenue, you can buy a bigger boat. With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middleman, you can negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City! From there you can direct your huge enterprise.” “How long would that take?” asked the Mexican. “Twenty, perhaps twenty-five years,” replied the American. “And then when your business gets really big, you can start selling stocks and make millions!” “Millions? Really? And after that?” asked the fisherman. “Well,” responded the American, “After that you’ll be able to retire, live in a tiny village near the coast, sleep late, play with your grandchildren, catch a few fish, take a siesta, and spend your evenings drinking and enjoying visiting with your friends.”
What are your thoughts?
