Arguing Quote by Charlie Munger
“Economists get very uncomfortable when you talk about virtue and vice. It doesn't lend itself to a lot of columns with numbers. But I would argue that there are big virtue effects in economics. I would say that the spreading of double-entry bookkeeping by the Monk, Fra Luce de Pacioli, was a big virtue effect in economics. It made business more controllable, and it made it more honest.”
About This Quote
Source Speech: Annual Shareholder Meeting, Berkshire Hathaway, 2015
Virtue influences economics beyond numbers; ethical practices shape markets and trust.
In simple terms: Ethics affect economic outcomes.
Key Takeaway
Promote honesty and accountability in business.
Themes
ethics
economics
trust
accountability
Mood
thoughtful
critical
Type
analytical
inspirational
When to use this quote
- corporate governance
- financial reporting
- business ethics
- policy making
Key Concepts
virtue economics
institutional design
behavioral finance
Questions to Reflect On
- How can firms embed virtue without sacrificing efficiency?
- What incentives reinforce honest accounting?
A Different Perspective
Virtue alone cannot fix all market failures; incentives still matter.
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