Quotes by Economists - Page 9

This book is an essay in what is derogatorily called "literary economics," as opposed to mathematical economics, econometrics, or (embracing them both) the "new economic history." A man does what he can, and in the more elegant - one is tempted to say "fancier" - techniques I am, as one who received his formation in the 1930s, untutored. A colleague has offered to provide a mathematical model to decorate the work. It might be useful to some readers, but not to me. Catastrophe mathematics, dealing with such events as falling off a height, is a new branch of the discipline, I am told, which has yet to demonstrate its rigor or usefulness. I had better wait. Econometricians among my friends tell me that rare events such as panics cannot be dealt with by the normal techniques of regression, but have to be introduced exogenously as "dummy variables." The real choice open to me was whether to follow relatively simple statistical procedures, with an abundance of charts and tables, or not. In the event, I decided against it. For those who yearn for numbers, standard series on bank reserves, foreign trade, commodity prices, money supply, security prices, rate of interest, and the like are fairly readily available in the historical statistics.
Charles P. Kindleberger
In Chapter 5 we consider swindles and defalcations. It happens that crashes and panics often are precipitated by the revelation of some misfeasance, malfeasance, or malversation (the corruption of officials) engendered during the mania. It seems clear from the historical record that swindles are a response to the greedy appetite for wealth stimulated by the boom. And as the monetary system gets stretched, institutions lose liquidity, and unsuccessful swindles are about to be revealed, the temptation to take the money and run becomes virtually irresistible. It is difficult to write on this subject without permitting the typewriter to drip with irony. An attempt will be made.
Charles P. Kindleberger
In the case of patentable ideas such as the wheelbarrow, the idea of unpriced spillovers is more plausible. Yet there is no reason to believe that it is of practical importance. Indeed, there is a modern example of the wheelbarrow – that of Travelpro – the inventor of the modern wheeled roll-on suitcase with a retractable handle. Obviously such an idea can not both be useful and be secret – and once you see a wheeled roll-on suitcase it is not difficult to figure out how to make one of your own. Needless to say, Travelpro was quickly imitated – and so quickly you probably have never even heard of Travelpro. Never-the-less – despite their inability to garner an intellectual monopoly over their invention – they found it worthwhile to innovate – and they still do a lucrative business today, claiming “425,000 Flight Crew Members Worldwide Choose Travelpro Luggage.
Michele Boldrin
It is certainly true that imitation is everywhere, from sport to business, from dancing to dressing, from driving to singing. In fact, imitation is at the heart of competitive behavior and of almost any kind of social interaction. Like the fixed cost cum marginal cost argument that, as we pointed out earlier, is so powerful an argument that it can be applied to any and every thing, imitation is so widespread that, when taken literally, it is also everywhere. By this token one should see unpriced externalities in every market where producers imitate each other, thereby concluding that all kinds of economic activities should be allowed some form of monopoly power. Restaurants imitate each other, as coffee shops, athletes, real estate agents, car salesmen, and even bricklayers do, but we would certainly find it foolhardy to grant to a firm in each of these businesses monopoly power over one technique or another. This suggests that equating imitation with unpriced externalities leads us into a dark night in which all cows are gray.
Michele Boldrin
Although the view that, once discovered, ideas can be imitated for free by anybody is pervasive, it is far from the truth. While it may occasionally be the case that an idea is acquired at no cost—ideas are generally difficult to communicate, and the resources for doing so are limited. It is rather ironic that a group of economists, who are also college professors and earn a substantial living teaching old ideas because their transmission is neither simple nor cheap, would argue otherwise in their scientific work. Most of the times imitation requires effort and, what is more important, imitation requires purchasing either some products or some teaching services from the original innovator, meaning that most spillovers are priced.
Michele Boldrin
need is not demand. Effective economic demand requires not merely need but corresponding purchasing power.
Henry Hazlitt
More die in the United States of too much food than of too little
John Kenneth Galbraith
Everything which might cause doubt about the wisdom of the government or create discontent will be kept from the people. The basis of unfavorable comparisons with elsewhere, the knowledge of possible alternatives to the course actually taken, information which might suggest failure on the part of the government to live up to its promises or to take advantage of opportunities to improve conditions--all will be suppressed. There is consequently no field where the systematic control of information will not be practiced and uniformity of views not enforced.
Friedrich A. Hayek
It is not difficult to deprive the great majority of independent thought. But the minority who will retain an inclination to criticize must also be silenced....Public criticism or even expressions of doubt must be suppressed because they tend to weaken pubic support....When the doubt or fear expressed concerns not the success of a particular enterprise but of the whole social plan, it must be treated even more as sabotage.
Friedrich A. Hayek
And that's just the beginning. More and more, conventional wisdom says that the responsible thing is to make the unemployed suffer. And while the benefits from inflicting pain are an illusion, the pain itself will be all too real.
Paul Krugman
Even if we could grow our way out of the crisis and delay the inevitable and painful reconciliation of virtual and real wealth, there is the question of whether this would be a wise thing to do. Marginal costs of additional growth in rich countries, such as global warming, biodiversity loss and roadways choked with cars, now likely exceed marginal benefits of a little extra consumption. The end result is that promoting further economic growth makes us poorer, not richer.
Herman E. Daly
The theories of the social sciences do not consist of “laws” in the sense of empirical rules about the behavior of objects definable in physical terms. All that the theory of the social sciences attempts is to provide a technique of reasoning which assists us in connecting individual facts, but which, like logic or mathematics, is not about the facts. It can, therefore, and this is the second point, never be verified or falsified by reference to facts.
Friedrich A. Hayek
The quasi-peaceable gentleman of leisure, then, not only consumes of the staff of life beyond the minimum required for subsistence and physical efficiency, but his consumption also undergoes a specialisation as regards the quality of the goods consumed. He consumes freely and of the best, in food, drink, narcotics, shelter, services, ornaments, apparel, weapons and accoutrements, amusements, amulets, and idols or divinities.
Thorstein Veblen
The government is indeed an institution, but "the market" is nothing more than an option for each individual to chose among numerous existing institutions, or to fashion new arrangements suited to his own situation and taste.
Thomas Sowell
Everything we get, outside of the free gifts of nature, must in some way be paid for. The world is full of so- called economists who in turn are full of schemes for getting something for nothing. They tell us that the government can spend and spend without taxing at all; that it can continue to pile up debt without ever paying it off, because "we owe it to ourselves.
Henry Hazlitt
The General Theory was not truly revolutionary at all but merely old and oft-refuted mercantilist and inflationist fallacies dressed up in shiny new garb, replete with newly constructed and largely incomprehensible jargon.
Murray N. Rothbard
The shortcomings of economics are not original error but uncorrected obsolescence. The obsolescence has occurred because what is convenient has become sacrosanct. Anyone who attacks such ideas must seem to be a trifle self-confident and even aggressive. The man who makes his entry by leaning against an infirm door gets an unjustified reputation for violence. Something is to be attributed to the poor state of the door.
John Kenneth Galbraith
In the long run we are all dead.
John Maynard Keynes
For every dollar that is spent on the (boondoggle) bridge a dollar will be taken away from taxpayers. If the bridge costs $1,000,000 the taxpayers will lose $1,000, 000. They will have that much taken away from them which they would otherwise have spent on the things they needed most.
Henry Hazlitt
The economy is a wholly owned subsidiary of the environment, not the reverse.
Herman E. Daly
This is perhaps as good a place as any to point out that what distinguishes many reformers from those who cannot accept their proposals is not their greater philanthropy, but their greater impatience. The question is not whether we wish to see everybody as well off as possible. Among men of good will such an aim can be taken for granted. The real question concerns the proper means of achieving it. And in trying to answer this we must never lose sight of a few elementary truisms. We cannot distribute more wealth than is created. We cannot in the long run pay labor as a whole more than it produces.
Henry Hazlitt
Since the 1980s, we have given the rich a bigger slice of our pie in the belief that they would create more wealth, making the pie bigger than otherwise possible in the long run. The rich got the bigger slice of the pie all right, but they have actually reduced the pace at which the pie is growing.
Ha-Joon Chang
While the invisible hand looks after the private sector, the invisible foot kicks the public sector to pieces.
Herman E. Daly
Environmental degradation is an iatrogenic disease induced by economic physicians who treat the basic malady of unlimited wants by prescribing unlimited growth.... Yet one certainly does not cure a treatment-induced disease by increasing the treatment dosage.
Herman E. Daly
It is one of the saddest spectacles of our time to see a great democratic movement support a policy which must lead to the destruction of democracy and which meanwhile can benefit only a minority of the masses who support it. Yet it is this support from the Left of the tendencies toward monopoly which make them so irresistible and the prospects of the future so dark.
Friedrich A. Hayek
Too large a proportion of recent "mathematical" economics are mere concoctions, as imprecise as the initial assumptions they rest on, which allow the author to lose sight of the complexities and interdependencies of the real world in a maze of pretentious and unhelpful symbols.
John Maynard Keynes
What then is the intellectual advantage of civilization over primitive savagery? It is not necessarily that each civilized man has more knowledge but that he requires far less.
Thomas Sowell
Why should a financial engineer be paid four, four times... to a hundred times more than the, uh... real engineer?A real engineer build bridges, a financial engineer build, build dreams.And when those dream turn out to be nightmares, other people pay for it.
Andrew Sheng
There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: "In the long run we are all dead." And such shallow wisecracks pass as devastating epigrams and the ripest wisdom.
Henry Hazlitt
Machinery which is not used is not capital.
Karl Marx
It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.
Murray N. Rothbard
If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.
John Maynard Keynes
Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are -- a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.
Ha-Joon Chang
It is true that the virtues which are less esteemed and practiced now--independence, self-reliance, and the willingness to bear risks, the readiness to back one's own conviction against a majority, and the willingness to voluntary cooperation with one's neighbors--are essentially those on which the of an individualist society rests. Collectivism has nothing to put in their place, and in so far as it already has destroyed then it has left a void filled by nothing but the demand for obedience and the compulsion of the individual to what is collectively decided to be good.
Friedrich A. Hayek
Under capitalism the common man enjoys amenities which in ages gone by were unknown and therefore inaccessible even to the richest people. But, of course, these motorcars, television sets and refrigerators do not make a man happy. In the instant in which he acquires them, he may feel happier than he did before. But as soon as some of his wishes are satisfied, new wishes spring up. Such is human nature.
Ludwig von Mises
Freedom to order our own conduct in the sphere where material circumstances force a choice upon us, and responsibility for the arrangement of our own life according to our own conscience, is the air in which alone moral sense grows and in which moral values are daily recreated in the free decision of the individual. Responsibility, not to a superior, but to one's own conscience, the awareness of a duty not exacted by compulsion, the necessity to decide which of the things one values are to be sacrificed to others, and to bear the consequences of one's own decision, are the very essence of any morals which deserve the name.
Friedrich A. Hayek
Geniuses and prophets do not usually excel in professional learning, and their originality, if any, is often due precisely to the fact that they do not.
Joseph Alois Schumpeter
What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom.
Adam Smith
The word 'truth' itself ceases to have its old meaning. It describes no longer something to be found, with the individual conscience as the sole arbiter of whether in any particular instance the evidence (or the standing of those proclaiming it) warrants a belief; it becomes something to be laid down by authority, something which has to believed in the interest of unity of the organized effort and which may have to be altered as the exigencies of this organized effort require it.
Friedrich A. Hayek
Probably it is true enough that the great majority are rarely capable of thinking independently, that on most questions they accept views which they find ready-made, and that they will be equally content if born or coaxed into one set of beliefs or another. In any society freedom of thought will probably be of direct significance only for a small minority. But this does not mean that anyone is competent, or ought to have power, to select those to whom this freedom is to be reserved. It certainly does not justify the presumption of any group of people to claim the right to determine what people ought to think or believe.
Friedrich A. Hayek
Economics is a study of cause-and-effect relationships in an economy. It's purpose is to discern the consequences of various ways of allocating resources which have alternative uses. It has nothing to say about philosophy or values, anymore than it has to say about music or literature.
Thomas Sowell
This plea comes from the bottom of my heart. Every friend of freedom, and I know you are one, must be as revolted as I am by the prospect of turning the United States into an armed camp, by the vision of jails filled with casual drug users and of an army of enforcers empowered to invade the liberty of citizens on slight evidence. A country in which shooting down unidentified planes "on suspicion" can be seriously considered as a drug-war tactic is not the kind of United States that either you or I want to hand on to future generations.
Milton Friedman
Everyone may be called "comrade," but some comrades have the power of life and death over other comrades.
Thomas Sowell
The mechanical clock was self-contained, and once horologists learned to drive it by means of a coiled spring rather than a falling weight, it could be miniaturized so as to be portable, whether in the household or on the person. It was this possibility of widespread private use that laid the basis for 'time discipline,' as against 'time obedience.' One can ... use public clocks to simon people for one purpose or another; but that is not punctuality. Punctuality comes from within, not from without. It is the mechanical clock that made possible, for better or worse, a civilization attentive to the passage of time, hence to productivity and performance.
David S. Landes
The introduction of free competition is thus public declaration that from now on the members of society are unequal only to the extent that their capitals are unequal, that capital is the decisive power, and that therefore the capitalists, the bourgeoisie, have become the first class in society.
Karl Marx
Men are naturally unequal. They are unequal members of one family, in which one can be brilliant, another mediocre, and another an imbecile. Hereditary substance is a mystery.
Tutea Petre
Libertarians are not supposed to be egalitarians… And yet there it is: egalitarianism has become the unspoken but very real driving force in the current Official movement. Once group egalitarianism becomes the norm, other groups than blacks will clamor for the privileges of ‘victim status.’ Sure enough, that jostling for victim privilege is now the major hallmark of American politics.The Official libertarians have so far not displayed enormous affinity for Latino or disabled ‘rights,’ but they are highly enthusiastic about the ‘rights’ of women and feminism generally. And in particular, libertarians have displayed great fervor for gay ‘rights’ and stress the evils of ‘discrimination’ against gays. So ardently are libertarians devoted to gay rights that the word ‘libertarian’ in the public press has now become almost a code word for champion of gay rights.Only his pro-gay agenda accounts for the ardor of Republican libertarians toward Massachusetts Governor Weld, whom they embrace as, in the current slogan, ‘fiscally conservative but socially tolerant.’ (The ‘fiscally conservative’ refers to a one-time budget cut followed, the next time around, by a compensatory budget increase.) ’Socially tolerant,’ in the current atmosphere, means a devotion to the entire Left cultural agenda, from gay rights to compulsory multicultural propaganda and condomization in the public schools.
Murray N. Rothbard
On the 26th of January 1950, we are going to enter into a life of contradictions. In politics we will have equality and in social and economic life we will have inequality.In politics we will be recognizing the principle of one man one vote and one vote one value.In our social and economic life, we shall, by reason of our social and economic structure, continue to deny the principle of one man one value.How long shall we continue to live this life of contradictions? How long shall we continue to deny equality in our social and economic life? If we continue to deny it for long, we will do so only by putting our political democracy in peril. We must remove this contradiction at the earliest possible moment or else those who suffer from inequality will blow up the structure of political democracy which this Assembly has so laboriously built up.
B.R. Ambedkar
The emancipation of the working class can only be achieved by the working class itself — without the assistance of governments.
pierre-jospeh proudhon
...it happens that "society is saved" as often as the circle of its ruling class is narrowed, as often as a more exclusive interest asserts itself over the general. Every demand for the most simple bourgeois financial reform, for the most ordinary liberalism, for the most commonplace republicanism, for the flattest democracy is forthwith punished as an "assault upon society" and is branded as "Socialism.
Karl Marx
Of course, chaos can lead to failure and extinction. But so can order. Far more nations, people, and ideas die of atrophy than die from revolution. Both order and chaos are necessary ingredients for long run success - for sustainability.
John Ikerd
The more we gained knowledge of these new totalitarian systems of mass-rule, the more we realized not only their similarity of structure, but also the fact that we had to do with a type of dominance that had been known in earlier epochs. We discovered that what the ancients called “tyrannis,” or 'cheirokratia,” what Sulla or the tyrants of the Italian Rennaissance had practised, and what finally alarmed the world in the French Revolution and under Napoleon, had surprisingly many similarities with modern totalitarianism, although this latter had elements with which they cannot be compared, and although it possessed means of domination unknown in past ages.
Wilhelm Röpke
The philosophers have only interpreted the world, in various ways; the point is to change it.
Karl Marx
The Constitution, the National Assembly, the dynastic parties, the blue and the red republicans, the heroes of Africa, the thunder from the platform, the sheet lightning of the daily press, the entire literature, the political names and the intellectual reputations, the civil law and penal code, the liberté, égalité, fraternité and the second of May 1852—all have vanished like a phantasmagoria before the spell of a man whom even his enemies do not make out to be a magician. Universal suffrage seems to have survived only for a moment, in order that with its own hand it may make its last will and testament before the eyes of all the world and declare in the name of the people itself: Everything that exists has this much worth, that it will perish.
Karl Marx
When, in the course of development, class distinctions have disappeared and all production has been concentrated in the hands of a vast association of the whole nation, the public power will lose its political character. Political power, properly so called, is merely the organized power of one class for oppressing another. If the proletariat during its contest with the bourgeoisie is compelled, by the force of circumstances, to organize itself as a class, if, by means of a revolution, it makes itself the ruling class, and, as such, sweeps away by force the old conditions of production then it will, along with these conditions, have swept away the conditions for the existence of class antagonisms, and of classes generally, and will thereby have abolished its own supremacy as a class.In place of the old bourgeois society with its classes and class antagonisms we shall have an association in which the free development of each is the condition for the free development of all.
Karl Marx
under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth... The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation
Alan Greenspan
In the midst of a culture that is rationally organized for a vocational workaday life, there is hardly any room for the cultivation of acosmic brotherliness, unless it is among strata who are economically carefree. Under the technical and social conditions of rational culture, an imitation of the life of Buddha, Jesus, or Francis seems condemned to failure for purely external reasons.
Max Weber
It is an adherent condition of human affairs that no intention, however sincere, of protecting the interests of others can make it safe or salutary to tie up their own hands. Still more obviously true is it, that by their own hands only can any positive and durable improvement of their circumstances in life be worked out.
John Stuart Mill
Markets cannot meet the needs of the very poor. The desperately poor are not consumers who will create an immediate profit.
Jeffrey D. Sachs
... It is immensely moving when a mature man - no matter whether old or young in years - is aware of a responsibility with heart and soul. He then acts by following an ethic of responsibility and somewhere reaches the point where he says: 'Here I stand; I can do no other'. That is something genuinely human and moving. And every one of us who is not spiritually dead must realize the possibility of finding himself at some time in that position. In so far as this is true, an ethic of ultimate ends and an ethic of responsibility are not absolute contrasts but rather supplements, which only in unison constitute a genuine man - a man who can have the 'calling for politics'.
Max Weber