Good morning. Today is the 250th anniversary of the publication of The Wealth of Nations by Scottish economist Adam Smith, a foundational text of modern economics that inspired the U.S.’s founders to create an economy based on free markets, fair taxation, a natural division of labor and a state focused on protecting the basic conditions for that to work. It’s a poignant anniversary at a time when the U.S. economy is losing jobs and mercantilism is on the ascent amid war and tariffs.
I spoke on Friday with Dambisa Moyo, a noted economist, author and baroness since being appointed a life peer in the U.K. House of Lords in 2022. She is giving a speech later today on Adam Smith at the University of Edinburgh. (You can watch the livestream here at 2 p.m. ET)
“Time and time again, Adam Smith has shown that free markets, free people, and deeper capital markets are all net positive for progress,” says Moyo, who also points to Smith’s earlier treatise on moral sentiments when imagining how he’d view the world of today. “He thought human beings would be more compassionate … he would think there’s not enough morality in how business leaders and individuals are thinking about inequality and the cost to society.”
Moyo argues that we’re in a moment where technology could usurp economics in the way that economics once usurped philosophy and religion, a world where “rulers will rule based on technology” and growth may come without jobs. Unlike OpenAI investor Vinod Khosla, who paints a sunny scenario of shared abundance in a recent podcast conversation with Fortune Editor-in-Chief Alyson Shontell, Moyo shares my concern that jobless growth is not going to be good for society.
“I don’t think a world where people are doing nothing is a world that people will feel satiated in an aspirational way,” says Moyo, pointing to countries where a surplus of young men without jobs has already heightened unrest, violence, addiction rates and illness.
In her view, the scale and speed of disruption from AI is changing the calculus of what it means to run a good business. Much like Henry Ford understood the need to help create enough wealth among workers to buy his cars, business leaders need to help sustain the consumer class through incomes and meaningful employment.
“If you want to protect your license to trade, it’s no longer going to be a world where you say, ‘Too bad, government, your unemployment rate is now at 20%—that’s got nothing to do with me,’” Moyo says, noting that a narrow tax base with a small number of highly profitable firms and highly paid workers undermines the foundations of policy-making inspired by Smith’s concepts of scarce labor and capital.
Moyo’s advice to business leaders: “You need to start to think, ‘well, maybe we can pay a little bit more in terms of royalties or on electricity bills.’ Think about retooling, reskilling, taking on a little bit more of those costs and thereby becoming more of a partner if you want to protect your license to trade.”
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top leadership news
U.S. oil futures rise above $100 per barrel
U.S. oil futures pushed past $100 per barrel over the weekend. As a result, gas station prices are likely to reach more than $4 a gallon. President Donald Trump maintained that “short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace” in a Sunday post on Truth Social.
OpenAI’s hardware and robotics chief resigns
Over the weekend, OpenAI’s leader of hardware and robotics operations Caitlin Kalinowski announced her resignation from the company as it faces criticism for a deal it signed with the U.S. Defense Department. “This was about principle, not people,” Kalinowski wrote in a post on LinkedIn and X.
BLS reports 92,000 job loss in February
The Bureau of Labor Statistics reported an unexpected loss of 92,000 jobs in February against an expected gain of 60,000 jobs. Morgan Stanley’s Ellen Zentner says the report leaves the Fed “between a rock and a hard place” when it comes to making rate decisions.
The markets
S&P 500 futures are down 1.31% this morning. The last session closed down 1.33%. The STOXX Europe 600 was down 2.38% in early trading. The U.K.’s FTSE 100 was down 1.66% in early trading. Japan’s Nikkei 225 was down 5.20%. China’s CSI 300 was up 0.97%. Hong Kong’s Hang Seng was down 1.35%. South Korea’s KOSPI was down 5.96%. India’s NIFTY 50 was down 2.18%. Bitcoin was down to $68K.
Around the watercooler
To justify a $1.5 trillion market cap after its IPO, SpaceX would need to earn more than Berkshire Hathaway. Here’s why that’s so unlikely by Shawn Tully
Joseph Stiglitz says buckle up before the great AI ‘reallocation’ era arrives by Catherine Gioino
Asana’s new CEO says getting a job in Silicon Valley isn’t harder for Gen Z than it was for him—he shares his own ‘donut box’ hack for getting hired by Orianna Rosa Royle
Ring is one of the largest companies ever to come out of Shark Tank. Its CEO says he prepared for his pitch like an Olympic athlete by Marco Quiroz-Gutierrez
Google, Meta, and Oracle are on a $1 trillion borrowing spree and there will be ‘winners and losers in this environment,’ bond fund manager says by Amanda Gerut
CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.
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