Economics Quotes - Page 2

Intellectually and compassionately explaining the reason freedom works is required for credibility.

Ron Paul

The fallacy that dynamic processes must be modeled as if the system is in continuous equilibrium is probably the most important reason for the intellectual failure of neoclassical economics. Mathematics, science and engineering developed tools long ago to model outside of equilibrium processes. This dynamic approach to thinking about the economy should become second nature to economists.

The 9/11 Commission warned that Al Qaeda "could... scheme to wield weapons of unprecedented destructive power in the largest cities of the United States." Future attacks could impose enormous costs on the entire economy. Having used up the surplus that the country enjoyed as part of the Cold War peace dividend, the U.S. government is in a weakened financial position to respond to another major terrorist attack, and its position will be damaged further by the large budget gaps and growing dependence on foreign capital projected for the future. As the historian Paul Kennedy wrote in his book The Rise and Fall of Great Powers, too many decisions made in Washington today "bring merely short-term advantage but long-term disadvantage." The absence of a sound, long-term financial strategy could bring about a deterioration that, in his words, "leads to the downward spiral of slower growth, heavier taxes, deepening domestic splits over spending priorities and a weakening capacity to bear the burdens of defense."Decades of success in mobilizing enormous sums of money to fight large wars and meet other government needs have led Americans to believe that ample funds will be readily available in the event of a future war, terrorist attack, or other emergency. But that can no longer be assumed. Budget constraints could limit the availability or raise the cost of resources to deal with new emergencies. If government debt continues to pile up, deficits rise to stratospheric levels, and heave dependence on foreign capital grows, borrowing the money needed will be very costly. [Alexander] Hamilton understood the risks of such a precarious situation. After suffering through financial shortages, lack of adequate food and weapons, desertions, and collapsing morale during the Revolution, he considered the risk that the government would have difficulty in assembling funds to defend itself all too real. If America remains on its dangerous financial course, Hamilton's gift to the nation - the blessing of sound finances - will be squandered.The U.S. government had no higher obligation that to protect the security of its citizens. Doing so becomes increasingly difficult if its finances are unsound. While the nature of this new brand of warfare, the war on terrorism, remains uncharted, there is much to be gained if our leaders look to the experiences of the past for guidance in responding to the challenges of the future. The willingness of the American people and their leaders to ensure that the nation's finances remain sound in the face of these new challenges - sacrificing parochial interests for the common good - is the price we must pay to preserve the nation's security and thus the liberties that Hamilton and his generation bequeathed us.

Robert D. Hormats

Neoclassical economics has effectively insulated itself from the great advances made in science and engineering over the last 40 years. This self-imposed isolation must come to an end. For while the concepts of neoclassical economics appear difficult, they are actually quaint in comparison to the sophistication evident in today's mathematics, engineering, computing, evolutionary biology and physics. In order to advance, economics must humbly submit to learning from disciplines that it has studiously ignored for so long. Some researchers in outside fields have called for the wholesale replacement of standard economics curricula, using at least the building blocks of modern thought inherent in other disciplines.

Economic experts tell us that the women of America spend 80 per cent of the national income, and the largest part of this expenditure is made for the necessities and the small luxuries of life.

Judith C. Waller

The life of man is so short that ordinary people simply cannot afford to be born

Halldór Laxness

Our aim was not to create profit, but jobs,' Sanchez Gordillo explained to me. This philosophy runs directly counter to the late-capitalist emphasis on 'efficiency' - a word which as been elevated to almost holy status in the neoliberal lexicon, but in reality has become a shameful euphemism for the sacrifice of human dignity at the altar of share prices.

best practices are useful reference points, but they must come with a warning label : The more you rely on external intelligence, the less you will value an internal idea. And this is the age of the idea

Economics ought to be a magpie discipline, taking in philosophy, history and politics. But heterodox approaches have long since been banished from most faculties, claims Tony Lawson. In the 1970s, when he started teaching at Cambridge, the economics faculty still boasted legends such as Nicky Kaldor and Joan Robinson. "There were big debates, and students would study politics, the history of economic thought." And now? "Nothing. No debates, no politics or history of economic thought and the courses are nearly all maths."How do elites remain in charge? If the tale of the economists is any guide, by clearing out the opposition and then blocking their ears to reality. The result is the one we're all paying for.

Aditya Chakrabortty

Talent, just like gold or any other precious commodity is subject to the same demand & supply economics

Whoever controls the volume of money in any country is absolute master of all industry and commerce.

James A. Garfield President of the United States

The only inexplicable aspect of the process was that economic theory (which is, after all, what economics students were supposed to know) served almost no function in an investment bank. The bankers used economics as a sort of standardized test of general intelligence.

Their job as leader was not to solve the problem – the president really has little control over the economy – but to convince the public not only that he has a plan but that he is altogether confident in the plan's success and that only a cynic or someone in different to the public's well-being would dare to question him on the details.

George Friedman

The markets in the long run are no doubt driven by fundamental economic laws—if the United States runs a persistent trade deficit, the dollar will eventually plummet—but in the short run money flows less rationally. Fear and, to a lesser extent, greed are what make money move.

Labor is sacrificed on the inflation rates altar of oblation.

Printing currency for foreigners to buy is the best racket a government can get into.

Lee Child

When distance and convenience sets in; the small, the various and the personal wither away.

As UC Berkeley economics professor Brad DeLong put it to me:You get famine if the price of food spikes far beyond that of some people's means. This can be because food is short, objectively. This can be because the rich have bid the resources normally used to produce food away to other uses. You also get famine when the price of food is moderate if the incomes of large groups collapse.... In all of this, the lesson is that a properly functioning market does not seek to advance human happiness but rather to advance human wealth. What speaks in the market is money: purchasing power. If you have no money, you have no voice in the market. The market acts as if it does not know you exist and does not care whether you live or die.DeLong describes a marketplace that leaves people to die - not out of malice , but out of indifference.

Have you heard the joke about the chemist, physicist and economist who get wrecked on a desert isle, with a huge supply of canned baked beans as their only food? The chemist says that he can start a fire using the neighbouring palm trees, and calculate the temperature at which a can will explode. The physicist says that she can work out the trajectory of each of the baked beans, so that they can be collected and eaten. The economist says "Hang on guys, you're doing it the hard way. Let's assume we have a can opener.

No credit--no debt. Credit leads a man into temptation. Cash down is the only thing that will deliver him from evil.

Solomon Northup

IMF is really designed to protect creditors not debtors.

The failure of the roman system to furnish decent minimal standards for the mass of people was a fundamental cause of instability, both political and economic.

Anger and fear are disabling trait behaviours, instilled in the opponent with care.

Moonn Tzu

Economics also has to become a fundamentally monetary discipline—from the consideration of how individuals make market decisions through to our understanding of macroeconomics. The myth of "the money illusion" (which can only be true in a world without debt) has to be immediately dispelled, while our macroeconomics have to reflect a monetary economy in which nominal magnitudes matter, precisely because they are the link between the value of current output and the financing of accumulated debt. The dangers of excessive debt and deflation simply cannot be comprehended from a neoclassical perspective.The discipline must also become fundamentally empirical, in contrast to the faux empiricism of econometrics. By this I mean basing itself on the economic and financial data first and foremost—the collection and interpretation of which has been the hallmark of contributions by econophysicists—and by respecting economic history, a topic which has been systematically expunged from economics departments around the world.

Civilization on Earth planet was equated with selfishness and greed; those people who lived in a civilized state exploited those who did not. There were shortages of vital commodities on Earth planet, and the people in the civilized nations were able to monopolize those commodities by reason of their greater economic strength. This imbalance appeared to be at the root of thedisputes.

Cristopher Priest

The only true and sustainable prosperity is shared prosperity.

Joseph E. Stiglitz

95% of economics is common sense

That's a large part of what economics is - people arbitrarily, or as a matter of taste, assigning numerical values to non-numerical things. And then pretending that they haven't just made the numbers up, which they have. Economics is like astrology in that sense, except that economics serves to justify the current power structure, and so it has a lot of fervent believers among the powerful.

Kim Stanley Robinson

Americans were happy to celebrate their super-rich and, at least sometimes, worry about their poor. But putting those two conversations together and talking about economic inequality was pretty much taboo.

Chrystia Freeland

Society has arisen out of the works of peace; the essence of society is peacemaking. Peace and not war is the father of all things. Only economic action has created the wealth around us; labor, not the profession of arms, brings happiness. Peace builds, war destroys.

Ludwig von Mises

Just when we are in many ways moving to an ever greater validation of the sacredness of the individual person, our capacity to imagine a social fabric that would hold individuals together is vanishing. This is in part because of the fact that our ethical individualism, deriving, as I have argued, from the Protestant religious tradition in America, is linked to an economic individualism that, ironically, knows nothing of the sacredness of the individual. Its only standard is money, and the only thing more sacred than money is more money. What economic individualism destroys and what our kind of religious individualism cannot restore is solidarity, a sense of being members of the same body. In most other North Atlantic societies, including other Protestant societies, a tradition of an established church, however secularized, provides some notion that we are in this thing together, that we need each other, that our precious and unique selves are not going to make it all alone.

Robert N. Bellah

There is no gainsaying the fact that this suggested program will strike most people as impossibly “radical” and “unrealistic”; any suggestion for changing the status quo, no matter how slight, can always be considered by someone as too radical, so that the only thoroughgoing escape from the charge of impracticality is never to advocate any change whatever in existing conditions. But to take this approach is to abandon human reason, and to drift in animal- or plant-like manner with the tide of events.

Murray N. Rothbard

But the economy's out of control. Money just doesn't need human beings anymore. Most of us only get in the way.

How could a large land empire thrive and dominate in the modern world without reliable access to world markets and without much recourse to naval power?Stalin and Hitler had arrived at the same basic answer to this fundamental question. The state must be large in territory and self-sufficient in economics, with a balance between industry and agriculture that supported a hardily conformist and ideologically motivated citizenry capable of fulfilling historical prophecies - either Stalinist internal industrialization or Nazi colonial agrarianism. Both Hitler and Stalin aimed at imperial autarky, within a large land empire well supplies in food, raw materials, and mineral resources. Both understood the flash appeal of modern materials: Stalin had named himself after steel, and Hitler paid special attention to is production. Yet both Stalin and Hitler understood agriculture as a key element in the completion of their revolutions. Both believed that their systems would prove their superiority to decadent capitalism, and guarantee independence from the rest of the world, by the production of food.p. 158

They (economists) must set aside their contempt for other disciplines and their absurd claim to greater scientific legitimacy, despite the fact that they know almost nothing about anything.

What's good about growth? Why is it intrinsically good?

If we try to run the economy for the benefit of a single group or class, we shall injure or destroy all groups, including the members of the very class for whose benefit we have been trying to run it. We must run the economy for everybody

It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.

The world's most primitive people have few possessions, but they are not poor. Poverty is not a certain small amount of goods, nor is it just a relation between means and ends; above all it is a relation between people. Poverty is a social status. As such it is the invention of civilization.

Marshall Sahlins

What, then, should you do? With an excellent hand, you should bet: You lose nothing if your opponent folds, while giving yourself a good chance of winning a big pot if he calls. But with a middling hand, you shouldn't bet: If he has a bad hand, he'll fold, and you'll win the ante, which is what you'd have won anyway by checking; but if he has a good hand, he'll call and win. It's heads he wins, tails you don't. You should check instead, and hope your middling hand wins the ante.What about with a terrible hand? Should you check or bet? The answer is surprising. Checking would be unwise, because the hands will be compared and you will lose. It actually makes more sense to bet with these bad hands, because the only way he might drop out is if you make a bet. Perversely, you are better off betting with awful cards than with mediocre ones, the quintessential (and rational) bluff. There's a second reason for you to bet with terrible cards rather than middling ones: Your opponent will have to call a little more often. Because he knows that your bets are sometimes very weak, he can't afford to fold too easily. That means that when you bet with a good hand, you are more likely to be called, and to win when you are. Because you are bluffing with bad cards, your good hands make more money.

We should not conclude from this that everything depends on waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cannot depend on strict mathematical expectation, since the basis for making such calculations does not exist; and that it is our innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.

John Maynard Keynes

One of the most damaging myths of our time is that poor countries live in poverty because of a conspiracy of the rich countries, who arrange things so as to keep them underdeveloped, in order to exploit them.

Mario Vargas Llosa

The worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to insure that as few people as possible escape the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited for volume of trading to return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next 24 months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.

John Kenneth Galbraith

There is an old saying, or should be, that it is a wise economist who recognizes the scope of his own generalizations.

John Kenneth Galbraith

It's not that gays and diversity equal high technology. But if your culture is not such that it can accept difference, and uniqueness and oddity and eccentricity, you will not get high tech industry.

Richard Florida

We want people to represent us in politics—and in love and economics too. When people represent us fully, they are ourselves and are not ourselves. When an object is simultaneously the same as and different from the person concerned with it—or considering it—aesthetics is there.

Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.

John Maynard Keynes

Knowledge is the best economy we can have.

Greejesh Prakash

Imagine the big rating agencies as three competitive saloons standing side by side, with each free to set its own drinking age. Before long, nine-year-olds would be downing bourbon

Roger Lowenstein

There are three laws that govern our universe - laws of physics, laws of nature, and spiritual laws. Like the laws of physics and nature, spiritual laws are just as precise as any mathematics equation.

And yet all the gold is in England, it is dug up from Portuguese and Spanish mines, but it flows by some occult power of attraction to the Tower of London.” “Flows,” Caroline repeated. “Flows, like a current.” Sophie nodded. “And the English have grown so used to this that they use ‘currency’ as a synonym for money, as if no distinction need be observed between them.

Neal Stephenson

How does a poor country defeat rich ones?” “Indeed, the answer is not by acquiring wealth in the sense that France has it.” “Meaning vineyards, farms, peasants, cows?” “But rather to play a sort of trick and redefine wealth to mean something novel.” “Currency!” “Indeed.

Neal Stephenson

And more than the quality of its institutions, what distinguishes a developed country from a developing one is the degree of consensus in its politics, and thus its ability to take actions to secure a better future despite short-term pain.

Raghuram G. Rajan

The advertising industry's prime task is to ensure that uninformed consumers make irrational choices, thus undermining market theories that are based on just the opposite.

Much of what is euphemistically known as the middle class, merely because it dresses up to go to work, is now reduced to proletarian conditions of existence. Many white-collar jobs require no more skill and pay even less than blue-collar jobs, conferring little status or security.

Christopher Lasch

Bad economics teaches that computers can design markets. Good economics teaches that markets can design computers.

Jakub Bożydar Wiśniewski

The young are right if they have little confidence in the ideas which rule most of their elders. But they are mistaken or misled when they believe that these are still the liberal ideas of the nineteenth century, which, in fact, the younger generation hardly knows. We have little right to feel in this respect superior to our grandfathers; and we should never forget that it is we, the twentieth century, and not they, who have made a mess of things. If in the first attempt to create a world of free men we have failed, we must try again. The guiding principle that a policy of freedom for the individual is the only truly progressive policy remains as true today as it was in the nineteenth century.

Friedrich A. Hayek

Armed with the new right to sell their products back to host societies, they can bleed both producing and buying populations at the same time. That is why under new international "free trade" agreements private corporations and businesses have increasingly demanded that governments deregulate and lower taxes so that they are not obliged to pay the cost of sustaining the life of host-societies or their environments.

The main cause of the ineffectiveness of British propaganda is that those directing it seem to have lost their own belief in the peculiar values of English civilization or to be completely ignorant of the main points on which it differs from that of other people. The Left intelligentsia indeed, have so long worshiped foreign gods that they seem to have become almost incapable of seeing any good in the characteristic English institutions and traditions. That the moral values on which most of them pride themselves are largely the product of the institutions they are out to destroy, these socialists cannot, of course, admit.

Friedrich A. Hayek

Rivera’s admiration for Stalin was equaled only by his admiration for Henry Ford. By the 1920s and ‘30s, nearly every industrial country in Europe and Latin America, as well as the Soviet Union, had adopted Ford’s engineering and manufacturing methods: his highly efficient assembly line to increase production and reduce the cost of automobiles, so that the working class could at least afford to own a car; his total control over all the manufacturing and production processes by concentrating them all in one place, from the gathering of raw materials to orchestrating the final assembly; and his integration, training, and absolute control of the workforce. Kahn, the architect of Ford’s factories, subsequently constructed hundreds of factories on the model of the Rouge complex in Dearborn, Michigan, which was the epicenter of Ford’s industrial acumen as well as a world-wide symbol of future technology. Such achievements led Rivera to regard Detroit’s industry as the means of transforming the proletariat to take the reins of economic production.

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