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

Trendingnow

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns

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
Add Fortune on Google for similar content.
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
Add Fortune on Google for similar content.

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

Exclusive: Xbox’s CEO on 3,200 job cuts, four studios axed, and her blunt warning that ‘we spread ourselves too thin’
Microsoft
Exclusive: Xbox’s CEO on 3,200 job cuts, four studios axed, and her blunt warning that ‘we spread ourselves too thin’
By July 6, 2026
0 seconds ago
The yen is quietly crashing as Japan’s debt crisis bleeds into currency markets, and efforts to halt the slide are ‘doomed to fail,’ economist says
EconomyCurrency
The yen is quietly crashing as Japan’s debt crisis bleeds into currency markets, and efforts to halt the slide are ‘doomed to fail,’ economist says
By Jason MaJuly 6, 2026
2 hours ago
Strategy executive chairman Michael Saylor wears a microphone and looks into the crowd during a conference.
CryptoBitcoin
Strategy sheds $216 million in Bitcoin in crypto hoarder’s largest sale ever
By Camila Grigera NaónJuly 6, 2026
3 hours ago
‘All I did was ask for a review’: Trump denies demanding FIFA for a review of Folarin Balogun’s World Cup red card
PoliticsSports
‘All I did was ask for a review’: Trump denies demanding FIFA for a review of Folarin Balogun’s World Cup red card
By The Associated Press and Collin BinkleyJuly 6, 2026
3 hours ago
Taylor Swift’s wedding proves her biggest economic force is still her fans
NewslettersMPW Daily
Taylor Swift’s wedding proves her biggest economic force is still her fans
By Emma HinchliffeJuly 6, 2026
3 hours ago
‘Our business today is not healthy’: 1,600 Xbox employees among the 4,800 laid off by Microsoft as it looks to ‘reset’ gaming division
Big TechMicrosoft
‘Our business today is not healthy’: 1,600 Xbox employees among the 4,800 laid off by Microsoft as it looks to ‘reset’ gaming division
By The Associated PressJuly 6, 2026
3 hours ago

Most Popular

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
1 day ago
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
3 days ago
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
Investing
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
By Jason MaJuly 5, 2026
23 hours ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
4 days ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
3 days ago
Gen Z was 'jaded about employment before we ever entered the workforce'—now psychologists say the stare has hardened into something worse
Economy
Gen Z was 'jaded about employment before we ever entered the workforce'—now psychologists say the stare has hardened into something worse
By Nick LichtenbergJuly 6, 2026
12 hours 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.