• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

Let’s stop trying to turn lemonade stands into MBA programs

By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
July 15, 2013, 10:48 AM ET
Profit machine.

FORTUNE — Three years ago last week, personal-finance columnist Terry Savage wrote what might still stand as the most insane professionally produced piece of writing of this millennium. In her syndicated column “The Savage Truth,” she recounted how she accosted three little girls running a lemonade stand in an “upscale suburb.” It turned out they weren’t selling the lemonade, but giving it away. This, Savage decided, was an affront to everything that was good and true:

“I pushed the button to roll down the window and stuck my head out to set them straight. ‘You must charge something for the lemonade,’ I explained. ‘That’s the whole point of a lemonade stand. You figure out your costs — how much the lemonade costs, and the cups — and then you charge a little more than what it costs you, so you can make money. Then you can buy more stuff, and make more lemonade, and sell it and make more money.'”

Her entreaties went nowhere. “It’s free!” the smiling, happy little girls repeated. Which sent Savage into paroxysms of rage and led her to conclude:

“No wonder America is getting it all wrong when it comes to government, and taxes, and policy. We all act as if the ‘lemonade’ or benefits we’re ‘giving away’ is free.

And so the voters demand more — more subsidies for mortgages, more bailouts, more loan modification and longer periods of unemployment benefits.”

What’s strange and dispiriting is that Savage is far from alone in loading lemonade stands — and by implication, our children — with this kind of econo-moral baggage. Last year, the wind-up dolls of Fox & Friends decided to interview two little girls — sisters — about their lemonade stand as a way to hammer home Fox News’ insistent, purposeful misinterpretation of President Obama’s “You didn’t build that” comment. A more repellent and cringeworthy display would have been hard to find, at least during that half-hour of the show.

MORE: Apple: Game over or room to grow?

Brian Kilmeade, one of Fox & Friends‘ three animatronic hosts, introduced the girls by saying they had built their lemonade business “without any help.” He then asked them: “How did you feel about the president saying you needed help to start this business?”

http://www.youtube.com/watch?feature=player_embedded&v=tWJMArk4D1c#at=192

The spokesperson of the pair — at 7, three years older than her business partner — answered that the president’s remarks were “rude.” But then, apparently going off script, she added: “We worked very hard to build this business, but we did have help.” Of course, their parents supplied all the ingredients and whatnot, and perhaps tried to explain the concept of “money” to the younger of the pair. But both Kilmeade and the girls kept referring to the parents as “investors,” making them sound like the general partners at KKR, poring over the kids’ business plan and grilling them on their business model.

In other words, this was a children’s lemonade stand just like any other, and not a particularly good example of up-by-the-bootstraps protocapitalism among the Doc McStuffins set.

The theory here is that a lemonade stand (or a Girl Scout Cookie business, or a child-published home newsletter, or a 5-cent psychiatry booth) should be thought of as a total-immersion lesson in cutthroat capitalism. It rests on the presumption that such a lesson is even possible for kids who are young enough to run lemonade stands. It’s not.

MORE: A reorganized Microsoft looks a lot like Apple

In arguing against the idea of lemonade stands as junior MBA programs, Michal Lemberger, writing in Slate, declares that the stands “don’t teach entrepreneurship” because not every element of true capitalism is present:

[Customers] didn’t compare the price and quality of my kids’ lemonade to the price and quality of the lemonade being sold by other kids a few blocks over. They didn’t haggle. And that was the problem. Rather than encouraging an understanding of the value of money and hard work, my daughters’ customers taught them that all they had to do was show up.

But even though she’s taking the other side from Savage and Kilmeade, Lemberger is still working from the same faulty premise: that we should judge lemonade stands based on how fully they impart the lessons of free-market capitalism. She says they don’t do so at all, but that’s not true either. Do we judge the Easy Bake Oven by how fully it teaches cooking skills? Do we judge t-ball games by how well they prepare our tots for the Majors? (Well, some of us do, but we shouldn’t.)

Lemonade stands should be judged by one criterion only: Did the kids have fun? Having fun — play — is how kids learn. And by running a lemonade stand — even if they’re giving the stuff away like Savage’s little pinkos — the kids in fact are learning about business, at the level of children. Here, they’re learning how to obtain water, sugar, and lemonade (the supply chain), how to mix them together (the manufacturing process) and how to set up the stand, make a sign, and pass out the goods (capital infrastructure, and marketing and distribution.) It’s all pretend, as it’s supposed to be.

There’s plenty of time for kids to learn about the more complicated and mercenary aspects of the marketplace. For now, they’re interacting with customers. They’re providing a service. They’re “working.” They’re having fun. Shouldn’t that be enough?

About the Author
By Dan Mitchell
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
6 hours ago
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
CryptoSam Bankman-Fried
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
By Camila Grigera NaonJune 9, 2026
8 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
8 hours ago
The entrance to a U.S. Immigration and Customs (ICE) detention facility
North AmericaDepartment of Homeland Security
Texas ICE facility spent $11.5 million on guards, medical services, transportation and meals weeks before the camp even held detainees, GAO finds
By Michael Biesecker, Ryan J. Foley and The Associated PressJune 9, 2026
8 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
9 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
9 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
13 hours ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.