Economics Quotes - Page 4

Microeconomists are wrong about specific things and macroeconomists are wrong about things in general!

In my experience, economists rarely believe passionately in, or care passionately for, the free market. They are generally more concerned to reveal the market's imperfections, to further their own professional importance.

Terence Kealey

Theory of public goods. Theory that if I take you euro (as an elected state government) and give fifty cents back... you will be happier and I will be satisfied.

Radovan Kavický

Now, in the modern money economy everything in the nature of a social-economic occurrence consists in human actions and behaviour.

Oskar Morgenstern

...the facts of economic life cannot be comprehensively described in terms of statistics.

Oskar Morgenstern

Our knowledge of dynamic processes is necessarily inferior to our ability to describe stationary conditions.

Oskar Morgenstern

Orthodoxy builds a rococo logical palace on loose empirical sand.

Richard R. Nelson

Too many economists excuse their practical failure by saying "the politicians (or bureaucrats) didn't do exactly what I recommended." Just as medical practitioners must allow for the fact that their patients may not take all the pills they prescribe, or follow all the advice they are given, so economics practitioners need to foresee political and administrative pressures and make their plans robust to changes that politicians, bureaucrats, and lobbyists are likely to impose.

Paul Klemperer

Anything which is physically possible can be made financially possible, if the people of a state desire it.

Robert A. Heinlein

... it will appear that there is no such thing as fixed capital; there is nothing useful that is very old except the precious metals, and all life consists in the conversion of forms. The only capital which is of permanent value is immaterial--the experience of generations and the development of science.

David Ames Wells

He wants to focus on what he calls 'cultural issues.' That makes sense, because when you're going to rob people blind you don't want to have them focus their attention on economic issues.

Noam Chomsky

lthough the basic principles of economics are not very complicated, the very ease with which they can be learned also makes them easy to dismissed as "simplistic" by those who do not want to accept analyses which contradict their cherished beliefs. Evasions of the obvious are often far more complicated than the facts. Nor is it automatically true that complex effects must have complex causes. The ramifications of something very simple can become enormously complex.

Thomas Sowell

Who needs theory when you have so much information? But this is categorically the wrong attitude to take toward forecasting, especially in a field like economics where the data is so noisy.

Nate Silver

Even in recent times, the empirical evidence does not support the claim that trade liberalization or incentive neutrality leads to faster growth. It is true that higher manufacturing growth rates have been typically associated with higher export growth rates (mostly in countries where export and import shares to GDP grew), but there is no statistical relation between either of these growth rates or degree of trade restrictions. Rather, almost all of successful export-oriented growth has come with selective trade and industrialization policies. In this regard, stable exchange rates and national price levels seem to be considerably more important than import policy in producing successful export-oriented growth

Anwar Shaikh

It is an economic fact that predicting the future is most valuable when everybody thinks you are wrong

Derek Thompson

Relative poverty is when you have more taste than money.

Neel Burton

In economics, it is often professionally better to be associated with highly respectable error than uncertainly established truth.

John Kenneth Galbraith

Give me a one-handed Economist. All my economists say 'on hand...', then 'but on the other...

Harry Truman

Fierce, and what capitalists sometimes call 'ruinous' competition tends, therefore, to produce leap-frogging innovations that more often that not lead capitalists to fetishise technological and organisational innovations as the answer to all their prayers

David Harvey

It is natural that the appearance of pollution should have taken by surprise an economic science which has delighted in playing around with all kinds of mechanistic models. Curiously, even after the event economics gives no signs of acknowledging the role of natural resources in the economic process. Economists still do not seem to realize that, since the product of the economic process is waste, waste is an inevitable result of that process and ceteris paribus increases in greater proportion than the intensity of economic activity.

Nicholas Georgescu-Roegen

The theory of Economics must begin with a correct theory of consumption.

William Stanley Jevons

In each case, the relative cost of postponing the purchase for buyer and seller determines the intensity of competition between the [past and future] selves of the seller. If the buyer has a lower cost of postponing the purchase (delay, making do with an interior model) than the seller (inventory, staff salaries) the buyer has the bargaining power.

Rakesh V. Vohra

The reader who thinks that rationality does not require a definition should ponder the following: I'll give you a million dollars to do something irrational.

Lakshman Krishnamurthi

It rests on the attempt since the 1970s to translate a pathological degeneration of the principle of laissez-faire into economic reality by the systematic retreat of states from any regulation or control of the activities of profit-making enterprise. This attempt to hand over human society to the (allegedly) self-controlling and wealth- or even welfare-maximising market, populated (allegedly) by actors in rational pursuit of their interests, had no precedent in any earlier phase of capitalist development in any developed economy, not even the USA. It was a reductio ad absurdum of what its ideologists read into Adam Smith, as the correspondingly extremist 100% state-planned command economy of the USSR was of what the Bolsheviks read into Marx.

Eric Hobsbawm

A good way to do econometrics is to look for good natural experiments and use statistical methods that can tidy up the confounding factors that Nature has not controlled for us.

Daniel McFadden

We all agree that pessimism is a mark of superior intellect.

John Kenneth Galbraith

Misconceptions of business are almost inevitable in a society where most people have neither studied nor run businesses. In a society where most people are employees and consumers, it is easy to think of businesses as “them” – as impersonal organizations, whose internal operations are largely unknown and whose sums of money may sometimes be so huge as to be unfathomable.

Thomas Sowell

...the centrality of competitiveness as the key to growth is a recurrent EU motif. Two decades of EC directives on increasing competition in every area, from telecommunications to power generation to collateralizing wholesale funding markets for banks, all bear the same ordoliberal imprint. Similarly, the consistent focus on the periphery states’ loss of competitiveness and the need for deep wage and cost reductions therein, while the role of surplus countries in generating the crisis is utterly ignored, speaks to a deeply ordoliberal understanding of economic management. Savers, after all, cannot be sinners. Similarly, the most recent German innovation of a constitutional debt brake (Schuldenbremse) for all EU countries regardless of their business cycles or structural positions, coupled with a new rules-based fiscal treaty as the solution to the crisis, is simply an ever-tighter ordo by another name.If states have broken the rules, the only possible policy is a diet of strict austerity to bring them back into conformity with the rules, plus automatic sanctions for those who cannot stay within the rules. There are no fallacies of composition, only good and bad policies. And since states, from an ordoliberal viewpoint, cannot be relied upon to provide the necessary austerity because they are prone to capture, we must have rules and an independent monetary authority to ensure that states conform to the ordo imperative; hence, the ECB. Then, and only then, will growth return. In the case of Greece and Italy in 2011, if that meant deposing a few democratically elected governments, then so be it.The most remarkable thing about this ordoliberalization of Europe is how it replicates the same error often attributed to the Anglo-American economies: the insistence that all developing states follow their liberal instruction sheets to get rich, the so-called Washington Consensus approach to development that we shall discuss shortly. The basic objection made by late-developing states, such as the countries of East Asia, to the Washington Consensus/Anglo-American idea “liberalize and then growth follows” was twofold. First, this understanding mistakes the outcomes of growth, stable public finances, low inflation, cost competitiveness, and so on, for the causes of growth. Second, the liberal path to growth only makes sense if you are an early developer, since you have no competitors—pace the United Kingdom in the eighteenth century and the United States in the nineteenth century. Yet in the contemporary world, development is almost always state led.

Mark Blyth

it is easier to induce national governments to discriminate against foreign producers than to defend the interests of domestic consumers

George W. Stocking

Save the trees! Return to the gold standard!

Ron Brackin

Inflation consists of subsidizing expenditures that give no returns with money that does not exist.

Jacques Rueff

This resulted in a model of the macroeconomy as consisting of a single consumer, who lives for ever, consuming the output of the economy, which is a single good produced in a single firm, which he owns and in which he is the only employee, which pays him both profits equivalent to the marginal product of capital and a wage equivalent to the marginal product of labor, to which he decides how much labor to supply by solving a utility function that maximizes his utility over an infinite time horizon, which he rationally expects and therefore correctly predicts. The economy would always be in equilibrium except for the impact of unexpected ‘technology shocks’ that change the firm’s productive capabilities (or his consumption preferences) and thus temporarily cause the single capitalist/worker/consumer to alter his working hours. Any reduction in working hours is a voluntary act, so the representative agent is never involuntarily unemployed, he’s just taking more leisure. And there are no banks, no debt, and indeed no money in this model.You think I’m joking? I wish I was.

Steve Keen

My hunch is that as the importance of a decision grows, the tendency to rely on quantitative analyses done by others tends to shrink. When the championship or the future of the company is on the line, managers tend to rely on their gut instincts.

Richard H. Thaler

But this is your home''Not any longer, my poppet. Women make nests but men make bequests and scatter them. Heigh-ho!

Joan Aiken

they'll reregulate within ten years. There'll be a string of crashes, and they'll do it. the free marketeers will scream, but the fact is, free markets don't provide safety. Only regulation does that. You want safe food, you better have inspectors. You want safe water, you better have an EPA. You want a safe stock market, you better have an SEC. And you want safe airlines, you better regulate them too. Believe me, they will.

Michael Crichton

OURSOCIETY ISCONTROLLED BY LAWYERSAND FINANCIERS"PROBLEMMAKERS WE NEED TO EVOMETO A SOCIETY LEAD BYCREATORS, ENGINEERS, SCIENTISTS PROBLEMSOLVERS. SURELY WE WILLHAVE MORE INGENUITYCOOPERATION ANDPEACE

Miguel Reynolds Brandao

Because we bump into reinforcing loops so often, it is handy to know this shortcut: The time it takes for an exponentially growing stock to double in size, the “doubling time,” equals approximately 70 divided by the growth rate (expressed as a percentage).Example: If you put $100 in the bank at 7% interest per year, you will double your money in 10 years (70 ÷ 7 = 10). If you get only 5% interest, your money will take 14 years to double.

Donella H. Meadows

Preindustrial living standards are predictable based on knowledge of disease and environment. Differences in social energy across societies were muted by the Malthusian constraints. They had minimal impacts on living conditions. Since the Industrial Revolution, however, we have entered a strange new world in which economic theory is of little use in understanding differences in income across societies, or the future income in any specific society. Wealth and poverty are a matter of differences in local social interactions that are magnified, not dampened, by the economic system, to produce feast or famine.

Gregory Clark

*THE COMMONS, which are creative - so unleash their potential*The commons are shareable resources of society or nature that people choose to use and govern through self-organising, instead of relying on the state or market for doing so. Think of how a village community might manage its only freshwater well and its nearby forest, or how Internet users worldwide collaboratively curate Wikipedia. Natural commons have traditionally emerged in communities seeking to steward Earth's 'common pool' resources, such as grazing land, fisheries, watersheds and forests. Cultural commons serve to keep alive a community's language, heritage and rituals, myths and music, traditional knowledge and practice. And the fast-growing digital commons are stewarded collaboratively online, co-creating open-source software, social networks, information and knowledge. ...In the 1970s, the little-known political scientist Elinor Ostrom started seeking out real-life examples of natural commons to find out what made them work - and she went on to win a Nobel-Memorial prize for what she discovered. Rather than being left 'open access', those successful commons were governed by clearly defined communities with collectively agreed rules and punitive sanctions for those who broke them...she realised, the commons can turn out to be a triumph, outperforming both state and market in sustainably stewarding and equitably harvesting Earth's resources... The triumph of the commons is certainly evident in the digital commons, which are fast turning into one of the most dynamic areas of the global economy.(p.82-3)

Kate Raworth

Broadly speaking, there are only two ways human beings can make an income: ...by contributing to society or they can extract an income from society

Martin Adams

Due to its inherently limited supply for each location, land obtains its value from the natural, social, and cultural wealth that exists in its surrounding environment.

Martin Adams

Democracy, we now know, is more than periodic elections in some countries, such elections have been used to legitimize essentially authoritarian regimes and deprive large parts of the citizenry of basic rights.

Joseph E. Stiglitz

Suppose someone were to describe a small country that provided free education through university for all of its citizens, transportation for schoolchildren, and free health care - including heart surgery - for all. You might suspect that a country is either phenomenally rich or on the fast track to fiscal crisis.

Joseph E. Stiglitz

An expert whose argument reeks of restraint or nuance often doesn't get much attention.

Steven D. Levitt

That’s because they don’t know,’ said Tyburn. ‘It’s like economics. Everybody’s got a theory, and some people make it their religion.

Ben Aaronovitch

To sell something familiar, make it surprising. To sell something surprising, make it familiar.

Derek Thompson

More than any other colonial founder, Oglethorpe made himself one of the people, promoting collective effort.

Nancy Isenberg

There lies another power in man. That power is Moral: Its name is CHOICE! Within this one word, Choice, lies the story of man’s world. It stands for the secret poise within him. It reveals as a flashlight all his imagings, his phantasies, his willful thoughts, his deeds, from the greatest to the least, even in this gliding hour we call today. This one word, Choice, stands for the sole and single power; it is the name of the mystery that lies behind the veil of all human appearances. A word that dissolves the enigma of men’s deeds. A word, a light that not only illuminates all his obvious works, all the inner springs and motives of his civilizations, but a light whose rays reach within the sanctuary of the secret thought of each and all, thus revealing the man of the past and the man of today, starkly in personal status as a social factor of beneficence or wore. Need we know man’s thoughts? View his works, his deeds; they tell his choice.

Louis Sullivan

They did not understand that by liberalizing imports, the government was also promoting exports.

Jeffrey D. Sachs

world is not a zero-sum struggle in which one country's gain is another's loss.

Jeffrey D. Sachs

sweatshops are the first rung on the ladder out of extreme poverty

Jeffrey D. Sachs

Knowing that an economy is in decline is not enough. We must know why the economy is failing to achieve economic growth if we are to take steps to establish or reestablish it.

Jeffrey D. Sachs

But things have been so admirably arranged by the Divine inventor of social order that in this, as in everything else, political economy and morality, far from clashing, agree; and the wisdom of Aristus is not only more dignified, but still more profitable, than the folly of Mondor. And when I say profitable, I do not mean only profitable to Aristus, or even to society in general, but more profitable to the workmen themselves—to the trade of the time.

Frédéric Bastiat

It is an economic fact that predicting the future is most valuable when everybody things you are wrong.

Derek Thompson

While there are certainly informational spillovers as ideas move from person to person, it is hard to see why in most instances they are not priced. Although it is possible to imagine examples such as the wheelbarrow where an idea cannot be used without revealing the secret, relatively few ideas are of this type. For copyrightable creations such as books, music, plays, movies and art, unpriced spillovers obviously play little role. A book, a CD or a work of art must be purchased before it can be used, and the creator is free to make use of his creation in the privacy of his home without revealing the secret to the public at large. Similarly with movies or plays. In all cases, the creation must effectively be purchased before the “secret” is revealed.

Michele Boldrin

History, practical experience, common sense and economic theory all agree: economic competition is probably one of the greatest ideas humans ever came up with. When people compete to achieve the same goal, great things seem to happen that otherwise would not. Things get done faster, cheaper, and better; new methods for lifting a weight or quenching a thirst are invented; the average guy ends up with more of the stuff he likes at a lower price than before. That is why, in the end, socialism collapsed like a rotten wall: it did not allow its people to compete and, as a result, it not only made their economic life miserable, but strangled their hearts and souls.

Michele Boldrin

Then the shit hit the fan.

John Kenneth Galbraith

In a basic agricultural society, it's easy enough to swap five chickens for a new dress or to pay a schoolteacher with a goat and three sacks of rice. Barter works less well in a more advanced economy. The logistical challenges of using chickens to buy books on Amazon.com would be formidable.

Charles Wheelan

The ceremonial differentiation of the dietary is best seen in the use of intoxicating beverages and narcotics. If these articles of consumption are costly, they are felt to be noble and honorific. Therefore the base classes, primarily the women, practice an enforced continence with respect to these stimulants, except in countries where they are obtainable at a very low cost. From archaic times down through all the length of the patriarchal regime it has been the office of the women to prepare and administer these luxuries, and it has been the perquisite of the men of gentle birth and breeding to consume them. Drunkenness and the other pathological consequences of the free use of stimulants therefore tend in their turn to become honorific, as being a mark, at the second remove, of the superior status of those who are able to afford the indulgence. Infirmities induced by over-indulgence are among some peoples freely recognised as manly attributes. It has even happened that the name for certain diseased conditions of the body arising from such an origin has passed into everyday speech as a synonym for "noble" or "gentle". It is only at a relatively early stage of culture that the symptoms of expensive vice are conventionally accepted as marks of a superior status, and so tend to become virtues and command the deference of the community; but the reputability that attaches to certain expensive vices long retains so much of its force as to appreciably lesson the disapprobation visited upon the men of the wealthy or noble class for any excessive indulgence. The same invidious distinction adds force to the current disapproval of any indulgence of this kind on the part of women, minors, and inferiors. This invidious traditional distinction has not lost its force even among the more advanced peoples of today. Where the example set by the leisure class retains its imperative force in the regulation of the conventionalities, it is observable that the women still in great measure practise the same traditional continence with regard to stimulants.

Thorstein Veblen

We got rich by violating one of the central tenets of economics: thou shall not sell off your capital and call it income. And yet over the past 40 years we have clear-cut the forests, fished rivers and oceans to the brink of extinction and siphoned oil from the earth as if it possessed an infinite supply. We've sold off our planet's natural capital and called it income. And now the earth, like the economy, is stripped.

Kalle Lasn

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Economics Quotes - Page 4

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