Quotes by Economists - Page 12

Some people believe labor-saving technological change is bad for the workers because it throws them out of work. This is the Luddite fallacy, one of the silliest ideas to ever come along in the long tradition of silly ideas in economics. Seeing why it's silly is a good way to illustrate further Solow's logic.The original Luddites were hosiery and lace workers in Nottingham, England, in 1811. They smashed knitting machines that embodied new labor-saving technology as a protest against unemployment (theirs), publicizing their actions in circulars mysteriously signed "King Ludd." Smashing machines was understandable protection of self-interest for the hosiery workers. They had skills specific to the old technology and knew their skills would not be worth much with the new technology. English government officials, after careful study, addressed the Luddites' concern by hanging fourteen of them in January 1813.The intellectual silliness came later, when some thinkers generalized the Luddites' plight into the Luddite fallacy: that an economy-wide technical breakthrough enabling production of the same amount of goods with fewer workers will result in an economy with - fewer workers. Somehow it never occurs to believers in Luddism that there's another alternative: produce more goods with the same number of workers. Labor-saving technology is another term for output-per-worker-increasing technology. All of the incentives of a market economy point toward increasing investment and output rather than decreasing employment; otherwise some extremely dumb factory owners are foregoing profit opportunities. With more output for the same number of workers, there is more income for each worker.Of course, there could very well be some unemployment of workers who know only the old technology - like the original Luddites - and this unemployment will be excruciating to its victims. But workers as a whole are better off with more powerful output-producing technology available to them. Luddites confuse the shift of employment from old to new technologies with an overall decline in employment. The former happens; the latter doesn't. Economies experiencing technical progress, like Germany, the United Kingdom, and the United States, do not show any long-run trend toward increasing unemployment; they do show a long-run trend toward increasing income per worker.Solow's logic had made clear that labor-saving technical advance was the only way that output per worker could keep increasing in the long run. The neo-Luddites, with unintentional irony, denigrate the only way that workers' incomes can keep increasing in the long-run: labor-saving technological progress.The Luddite fallacy is very much alive today. Just check out such a respectable document as the annual Human Development Report of the United Nations Development Program. The 1996 Human Development Report frets about "jobless growth" in many countries. The authors say "jobless growth" happens whenever the rate of employment growth is not as high as the rate of output growth, which leads to "very low incomes" for millions of workers. The 1993 Human Development Report expressed the same concern about this "problem" of jobless growth, which was especially severe in developing countries between 1960 and 1973: "GDP growth rates were fairly high, but employment growth rates were less than half this." Similarly, a study of Vietnam in 2000 lamented the slow growth of manufacturing employment relative to manufacturing output. The authors of all these reports forget that having GDP rise faster than employment is called growth of income per worker, which happens to be the only way that workers "very low incomes" can increase.
William Easterly
The production of too many useful things results in too many useless people.
Karl Marx
When in doubt as to what you should do, err on the side of 'giving.
Tony Cleaver
Contrary to what you may have heard or been taught, your ego isn't a bad thing. It means well. The ego wants to keep you safe, secure, protected and accepted. The problem comes in because it usually attempts to do this by keeping you in the same small, reclusive orbit that you've always gravitated toward. Life, on the other hand, is about change, growth and unfolding ever-greater aspects of the self. We all know the pain that is experienced when life decides to change even though you don't want it to. The harder you try to hold on to the comfort and safety of "what was" or "how it's always been done," the more pain you feel.
Charles Holt
The teachings of Buddha are eternal, but even then Buddha did not proclaim them to be infallible. The religion of Buddha has the capacity to change according to times, a quality which no other religion can claim to have...Now what is the basis of Buddhism? If you study carefully, you will see that Buddhism is based on reason. There is an element of flexibility inherent in it, which is not found in any other religion.
B.R. Ambedkar
It takes abstract thinking to see how greed can lead to prosperity, but it takes wishful thinking to claim that violence can lead to charity.
Jakub Bożydar Wiśniewski
An anarchist is someone who rejects the curious notion that crimes become virtues as they grow in size.
Jakub Bożydar Wiśniewski
It might be worthwhile to take a familiar question—why is there so much crime in modern society?—and stand it on its head: why isn't there a bit more crime?After all, every one of us regularly passes up opportunities to main, steal, and defraud. The chance of going to jail—thereby losing your job, your house, and your freedom, all of which are essentially economic penalties—is certainly a strong incentive. But when it comes to crime people also respond to moral incentives (they don't want to do something they consider wrong) and social incentives (they don't want to be seen by others as doing something wrong).
Steven D. Levitt
In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.…Just as the boom accelerated the rate of growth, so the crash enormously advanced the rate of discovery. Within a few days, something close to a universal trust turned into something akin to universal suspicion. Audits were ordered. Strained or preoccupied behavior was noticed. Most important, the collapse in stock values made irredeemable the position of the employee who had embezzled to play the market. He now confessed.
John Kenneth Galbraith
The man who is admired for the ingenuity of his larceny is almost always rediscovering some earlier form of fraud. The basic forms are all known, have all been practiced. The manners of capitalism improve. The morals may not.
John Kenneth Galbraith
Libertarianism holds that the only proper role of violence is to defend person and property against violence, that any use of violence that goes beyond such just defense is itself aggressive, unjust, and criminal
Murray N. Rothbard
Criminal: a person with predatory instincts who has not sufficient capital to form a corporation.
Howard Scott
Where I am at, is not actually where I am at. Where I am at is merely a point on the path to where I am going.
Tony Cleaver
Patience is the ability to enjoy the calm of boredom.
Jakub Bożydar Wiśniewski
Powerlessness can be a self-fulfilling prophesy. There is much that is wrong with America. But it will only be made right only if we force change to occur.
Robert B. Reich
Human beings are no longer born to their place in life, and chained down by an inexorable bond to the place they are born to, but are free to employ their faculties, and such favourable chances as offer, to achieve the lot which may appear to them most desirable.
John Stuart Mill
What are we having this liberty for? We are having this liberty in order to reform our social system, which is full of inequality, discrimination and other things, which conflict with our fundamental rights.
B.R. Ambedkar
All that has been said of the importance of individuality of character, and diversity in opinions andmodes of conduct, involves, as of the same unspeakable importance, diversity of education. A general State education is a mere contrivance for moulding people to be exactly like one another: and as the mould in which it casts them is that which pleases the predominant power in the government, whether this be a monarch, a priesthood, an aristocracy, or the majority of the existing generation; in proportion as it is efficient and successful, it establishes a despotism over the mind, leading by natural tendency to one over the body. An education established andcontrolled by the State should only exist, if it exist at all, as one amongmany competing experiments, carried on for the purpose of example and stimulus, to keep the others up to a certain standard of excellence.
John Stuart Mill
So long as you do not achieve social liberty, whatever freedom is provided by the law is of no avail to you.
B.R. Ambedkar
Labor in the white skin can never free itself as long as labor in the black skin is branded.
Karl Marx
We shall find that every effort to realize equality necessitates a sacrifice of liberty.
William Graham Sumner
Liberty is an affair of laws and institutions which bring rights and duties into equilibrium. It is not at all an affair of selecting the proper class to rule.
William Graham Sumner
The law-abiding citizen by his labor serves both himself and his fellow man and thereby integrates himself peacefully into the social order. The robber, on the other hand, is intent, not on honest toil, but on the forcible appropriation of the fruits of others' labor.
Ludwig von Mises
The most urgent necessity is, not that the State should teach, but that it should allow education. All monopolies are detestable, but the worst of all is the monopoly of education.
Frédéric Bastiat
. . . for liberty is an acknowledgment of faith in God and His works.
Frédéric Bastiat
No, the state is anything but the result of a contract! No one with even just an ounce of common sense would agree to such a contract. I have a lot of contracts in my files, but nowhere is there one like this. The state is the result of aggressive force and subjugation. It has evolved without contractual foundation, just like a gang of protection racketeers. And concerning the struggle of all against all: that is a myth.
Hans-Hermann Hoppe
Taxation is the price we pay for failing to build a civilized society. The higher the tax level, the greater the failure. A centrally planned totalitarian state represents a complete defeat for the civilized world, while a totally voluntary society represents its ultimate success.
Mark Skousen
In regard to the so-called social contract, I have often had occasion to protest that I haven't even seen the contract, much less been asked to consent to it. A valid contract requires voluntary offer, acceptance, and consideration. I've never received an offer from my rulers, so I certainly have not accepted one; and rather than consideration, I have received nothing but contempt from the rulers, who, notwithstanding the absence of any agreement, have indubitably threatened me with grave harm in the event that I fail to comply with their edicts.
Robert Higgs
I think that the Internet is going to be one of the major forces for reducing the role of government.
Milton Friedman
Once one concedes that a single world government is not necessary, then where does one logically stop at the permissibility of separate states? If Canada and the United States can be separate nations without being denounced as in a state of impermissible ‘anarchy’, why may not the South secede from the United States? New York State from the Union? New York City from the state? Why may not Manhattan secede? Each neighbourhood? Each block? Each house? Each person?
Murray N. Rothbard
The welfare of a people lies not in casting other peoples down but in peaceful collaboration.
Ludwig von Mises
Some say it's wrong to profit from the misfortune of others. I ask my students whether they'd support a law against doing so. But I caution them with some examples. An orthopedist profits from your misfortune of having broken your leg skiing. When there's news of a pending ice storm, I doubt whether it saddens the hearts of those in the collision repair business. I also tell my students that I profit from their misfortune—their ignorance of economic theory.
Walter E. Williams
It is in war that the State really comes into its own: swelling in power, in number, in pride, in absolute dominion over the economy and the society.
Murray N. Rothbard
A person who says “every person has a right to a decent education” may not actually mean “people should be robbed to support bad schools” or “all children should be forced into a prison-like building for 12 years.
Jeffrey Tucker
The safest way to make laws respected is to make them respectable.
Frédéric Bastiat
Collectivists see the world the way Mr. Magoo did—as one big blur. They homogenize people in a communal blender, sacrificing the discrete features that make us who we are.
Lawrence W. Reed
I cannot possibly understand how fraternity can be legally enforced without liberty being legally destroyed...
Frédéric Bastiat
The State obtains its revenue by coercion, by threatening dire penalties should the income not be forthcoming. That coercion is known as “taxation,” although in less regularized epochs it was often known as “tribute.” Taxation is theft, purely and simply even though it is theft on a grand and colossal scale which no acknowledged criminals could hope to match. It is a compulsory seizure of the property of the State’s inhabitants, or subjects.
Murray N. Rothbard
A government is a compulsory territorial monopolist of ultimate decision-making (jurisdiction) and, implied in this, a compulsory territorial monopolist of taxation. That is, a government is the ultimate arbiter, for the inhabitants of a given territory, regarding what is just and what is not, and it can determine unilaterally, i.e., without requiring the consent of those seeking justice or arbitration, the price that justice-seekers must pay to the government for providing this service.
Hans-Hermann Hoppe
So what? Why should an a priori proof of the libertarian property theory make any difference? Why not engage in aggression anyway?” Why indeed?! But then, why should the proof that 1+1=2 make any difference? One certainly can still act on the belief that 1+1=3. The obvious answer is “because a propositional justification exists for doing one thing, but not for doing another.” But why should we be reasonable, is the next come-back. Again, the answer is obvious. For one, because it would be impossible to argue against it; and further, because the proponent raising this question would already affirm the use of reason in his act of questioning it. This still might not suffice and everyone knows that it would not, for even if the libertarian ethic and argumentative reasoning must be regarded as ultimately justified, this still does not preclude that people will act on the basis of unjustified beliefs either because they don’t know, they don’t care, or they prefer not to know. I fail to see why this should be surprising or make the proof somehow defective.
Hans-Hermann Hoppe
Have you ever noticed how statists are constantly “reforming” their own handiwork? Education reform. Health-care reform. Welfare reform. Tax reform. The very fact they’re always busy “reforming” is an implicit admission that they didn’t get it right the first 50 times.
Lawrence W. Reed
He who is unfit to serve his fellow citizens wants to rule them.
Ludwig von Mises
The goal of intellectual life should be to see and understand what is true, not merely to adhere to a prevailing orthodoxy.
Jeffrey Tucker
War has been the necessary and inevitable consequence of the establishment of a monopoly on security.
Gustave de Molinari
Freedom is the foundation for all wonderful things in life.
Jeffrey Tucker
The phenomenon of economic ignorance is so widespread, and its consequences so frightening, that the objective of reducing that ignorance becomes a goal invested with independent moral worth.
Israel M. Kirzner
Ultimately, we need to take control over the money supply out of the hands of our governments and make the production of money again subject to the principle of free association. The first step to endorsing and promoting this strategy is to realize that governments do not—indeed cannot—fulfill any positive role whatever through the control of our money.
Jörg Guido Hülsmann
The disdain of profit is due to ignorance, and to an attitude that we may if we wish admire in the ascetic who has chosen to be content with a small share of the riches of this world, but which, when actualised in the form of restrictions on profits of others, is selfish to the extent that it imposes asceticism, and indeed deprivations of all sorts, on others.
Friedrich A. Hayek
He who let's the world, or his own portion of it, choose his plan of life for him, has no need of any other faculty than the ape-like one of imitation
John Stuart Mill
How will the remaining portion of the community like to have the amusements that shall be permitted to them regulated by the religious and moral sentiments of the stricter Calvinists and Methodists? Would they not, with considerable peremptoriness, desire these intrusively pious members of society to mind their own business? This is precisely what should be said to every government and every public, who have the pretension that no person shall enjoy any pleasure which they think wrong.
John Stuart Mill
The valuations which result in determination of definite prices are different. Each party attaches a higher value to the good he receives than to that he gives away. The exchange ratio, the price, is not the product of equality of valuation, but on the contrary, the product of a discrepancy in valuation.
Ludwig von Mises
A libertarian is someone who graduated from thinking that there are problems with the state to realizing that the state is the problem.
Jakub Bożydar Wiśniewski
To claim that one can be happy without being free is to prove that one has no idea what happiness means.
Jakub Bożydar Wiśniewski
A slave believes that the law should define the scope of liberty. A free person believes that liberty should define the scope of the law.
Jakub Bożydar Wiśniewski
The only common good is the common liberty to pursue individual goods.
Jakub Bożydar Wiśniewski
Politics is an endless, borderless war against individual liberty.
Jakub Bożydar Wiśniewski
Emergencies” have always been the pretext on which the safeguards of individual liberty have eroded.
Friedrich A. Hayek
Freedom is indivisible. As soon as one starts to restrict it, one enters upon a decline on which it is difficult to stop.
Ludwig von Mises
In spite of its alluring name, the welfare state stands or falls by compulsion. It is compulsion imposed upon us with the state’s power to punish noncompliance. Once this is clear, it is equally clear that the welfare state is an evil the same as every restriction of freedom.
Wilhelm Röpke
Liberty should be understood as freedom from the government, specifically, freedom from the initiation of physical force by the government.
George Reisman