Quotes by Economists - Page 23

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.

The appeal to the intellectually insecure is also more important than it might seem. Because economics touches so much of life, everyone wants to have an opinion. Yet the kind of economics covered in the textbooks is a technical subject that many people find hard to follow. How reassuring, then, to be told that it is all irrelevant -- that all you really need to know are a few simple ideas! Quite a few supply-siders have created for themselves a wonderful alternative intellectual history in which John Maynard Keynes was a fraud, Paul Samuelson and even Milton Friedman are fools, and the true line of deep economic thought runs from Adam Smith through obscure turn-of-the-century Austrians straight to them.

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.

Capitalism: Teach a man to fish, but the fish he catches aren't his. They belong to the person paying him to fish, and if he's lucky, he might get paid enough to buy a few fish for himself.

Characteristics of System 1: • generates impressions, feelings, and inclinations; when endorsed by System 2 these become beliefs, attitudes, and intentions • operates automatically and quickly, with little or no effort, and no sense of voluntary control • can be programmed by System 2 to mobilize attention when a particular pattern is detected (search) • executes skilled responses and generates skilled intuitions, after adequate training • creates a coherent pattern of activated ideas in associative memory • links a sense of cognitive ease to illusions of truth, pleasant feelings, and reduced vigilance • distinguishes the surprising from the normal • infers and invents causes and intentions • neglects ambiguity and suppresses doubt • is biased to believe and confirm • exaggerates emotional consistency (halo effect) • focuses on existing evidence and ignores absent evidence (WYSIATI)• generates a limited set of basic assessments • represents sets by norms and prototypes, does not integrate• matches intensities across scales (e.g., size to loudness) • computes more than intended (mental shotgun) • sometimes substitutes an easier question for a difficult one (heuristics) • is more sensitive to changes than to states (prospect theory)* • overweights low probabilities* • shows diminishing sensitivity to quantity (psychophysics)* • responds more strongly to losses than to gains (loss aversion)* • frames decision problems narrowly, in isolation from one another*

It also appears to me that when prejudices persist obstinately, it is the fault of nobody so much as of those who make a point of proclaiming them insuperable, as an excuse to themselves for never joining in an attempt to remove them. Any prejudice whatever will be insurmountable if those who do not share it themselves truckle to it, and flatter it, and accept it as a law of nature.

What ranks above all else for economic and political reconstruction is a radical change of ideologies. Economic prosperity is not so much a material problem; it is, first of all, an intellectual, spiritual, and moral problem.

Changes are products of intensive efforts.

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.

Some places will, however, be left behind. Not every city will succeed, because not every city has been adept at adapting to the age of information, in which ideas are the ultimate creator of wealth.

All told, over the period 1932-1980, nearly half a century, the top federal income tax rate in the United States averaged 81 percent.

Poverty is less a matter of income than of prospects. While the incomes of the poor have steadily risen through Great Society largesse their prospects have plummeted as families have broken into dependent fragments.

In embracing change entrepreneurs ensure social and economic stability.

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?

The Christian right, which trumpets the theme of family values, damns contemporary culture for undermining older traditions. Yet many individuals from this camp are not concerned first and foremost about family values per se. Family is a codeword for constraint; families and family values place constraints on individuals more effectively than any other institution, including government. The Christian right seeks a society in which all are constrained; they reject big government for failing at constraint, and for undermining those institutions, like the family, that have a chance at succeeding.

When, thirty-five years ago, I tried to give a summary of the ideas and principles of that social philosophy that was once known under the name of liberalism, I did not indulge in the vain hope that my account would prevent the impending catastrophes to which the policies adopted by the European nations were manifestly leading. All I wanted to achieve was to offer to the small minority of thoughtful people an opportunity to learn something about the aims of classical liberalism and its achievements and thus to pave the way for a resurrection of the spirit of freedom after the coming debacle.

Not content with the liberal creed of equality of rights, of equality before the law, the socialist State would trample on such equality on behalf of the monstrous and impossible goal of equality or uniformity of results--or rather, would erect a new privileged elite, a new class, in the name of bringing about such an impossible equality. Socialism was a confused and hybrid movement because it tried to achieve the lbieral goals of freedom, peace and industrial harmony and growth--goals which can only be achieved through liberty and the seperation of government from virtuallty--by imposting the old conservative means of statism, collectivism, and hierarchical privilege.

The conspicuously wealthy turn up urging the character-building value of privation for the poor.

What is a price? It is a proposed point of agreement between a buyer and seller. The proposal is the key. It is not a marching order. Past prices represent deals done in history. Current prices represent possible deals in the future. Prices embed vast information about perceived realities: resource availability, consumer demand, cultural biases and habits, speculations about the future. The price is also an amazing tool. It provides an objective basis for accounting and the assessment of profit and loss. Without prices, real prices rooted in real market experience, we’d been lost.

The media are desperately afraid of being accused of bias. And that's partly because there's a whole machine out there, an organized attempt to accuse them of bias whenever they say anything that the Right doesn't like. So rather than really try to report things objectively, they settle for being even-handed, which is not the same thing. One of my lines in a column—in which a number of people thought I was insulting them personally—was that if Bush said the Earth was flat, the mainstream media would have stories with the headline: 'Shape of Earth—Views Differ.' Then they'd quote some Democrats saying that it was round.

It is therefore scientifically correct to say that 'natural selection has been proved to be an agent of evolutionary change' - we can, in fact, prove it by doing. But it is totally illegitimate to claim that the discovery of this mechanism - natural selection - proves that the cause of evolution 'was automatic with no room for divine guidance or design'.

Advertising - A judicious mixture of flattery and threats.

I am in the unthinkable situation that people cannot bear to contemplate.

No paint or dye can give so splendid a colour as gilding. The merit of their beauty is greatly enhanced by their scarcity. With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eye is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves.Book I, Chapter 11 - Rent of Land, part II

Systemic processes tend to reward people for making decisions that turn out to be right—creating great resentment among the anointed, who feel themselves entitled to rewards for being articulate, politically active, and morally fervent.

There are two parts to the problem of measuring the objective exchange-value of money. First we have to obtain numerical demonstration of the fact of variations in the objective exchange-value of money; then the question must be decided whether it is possible to make a quantitative examination of the causes of particular price movements, with special reference to the question whether it would be possible to produce.So far as the first-named problem is concerned, it is self-evident that its solution must assume the existence of a good, or complex of goods, of unchanging objective exchange-value. The fact that such goods are inconceivable needs no further elucidation.If the one is proved to be soluble, then so also is the other; and proof of the insolubility of the one is also proof of the insolubility of the other.

The classics are only primitive literature. They belong to the same class as primitive machinery and primitive music and primitive medicine.

Men never cling to their dreams with such tenacity as at the moment when they are losing faith in them and know it but do not dare yet to confess it to themselves.

Food is a product of supply and demand, so try to figure out where the supplies are fresh, the suppliers are creative, and the demanders are informed.

In the market economy the consumers are supreme. Consumers determine, by theirbuying or abstention from buying, what should be produced, by whom and how, ofwhat quality and in what quantity. The entrepreneurs, capitalists, and landowners whofail to satisfy in the best possible and cheapest way the most urgent of the not yetsatisfied wishes of the consumers are forced to go out of business and forfeit theirpreferred position. In business offices and in laboratories the keenest minds are busyfructifying the most complex achievements of scientific research for the production ofever better implements and gadgets for people who have no inkling of the scientifictheories that make the fabrication of such things possible. The bigger an enterprise is,the more it is forced to adjust its production activities to the changing whims andfancies of the masses, its masters. The fundamental principle of capitalism is massproduction to supply the masses. It is the patronage of the masses that makesenterprises grow into bigness. The common man is supreme in the market economy.He is the customer “who is always right.

Cultures that do not wish to exist cannot be dissuaded from destroying themselves.

Since no individual acting separately can lawfully use force to destroy the rights of others, does it not logically follow that the same principle also applies to the common force that is nothing more than the organized combination of the individual forces?

The bourgeois sees in his wife a mere instrument of production.

The energy and daring is to resist the noes, until the final yes has been achieved.

Are people innately altruistic?" is the wrong kind of question to ask. People are people, and they respond to incentives. They can nearly always be manipulated--for good or ill--if only you find the right levers.

A mere enumeration of government activity is evidence -- often the sole evidence offered -- of "inadequate" nongovernment institutions, whose "inability" to cope with problems "obviously" required state intervention. Government is depicted as acting not in response to its own political incentives and constraints but because it is compelled to do so by concern for the public interest: it "cannot keep its hands off" when so "much is at stake," when emergency "compels" it to supersede other decision making processes. Such a tableau simple ignores the possibility that there are political incentives for the production and distribution of "emergencies" to justify expansions of power as well as to use episodic emergencies as a reason for creating enduring government institutions.

It takes no more research than a trip to almost any public library or college to show the incredibly lopsided coverage of slavery in the United States or in the Western Hemisphere, as compared to the meager writings on even larger number of Africans enslaved in the Islamic countries of the Middle East and North Africa, not to mention the vast numbers of Europeans also enslaved in centuries past in the Islamic world and within Europe itself. At least a million Europeans were enslaved by North African pirates alone from 1500 to 1800, and some Europeans slaves were still being sold on the auction blocks in the Egypt, years after the Emancipation Proclamation freed blacks in the United States.

Overborrowing or overlending? Lenders encourage indebtedness because it is profitable. Developing country governments are sometimes even pressured to overborrow ... Even without corruption, it is easy to be influenced by Western businessmen and financiers ... Countries that aren't sure that borrowing is worth the rist are told how important it is to establis a credit rating: borrow even if you really don't need the money.

There are two and only two ways that any economy can be organized. One is by freedom and voluntary choice—the way of the market. The other is by force and dictation—the way of the State.

Times of stress and difficulty are seasons of opportunity when the seeds of progress are sown.

Equality may be a fiction but nonetheless one must accept it as a governing principle.

The war has ended with every one owing every one else immense sums of money. Germany owes a large sum to the Allies, the Allies owe a large sum to Great Britain, and Great Britain owes a large sum to the United States. The holders of war loan in every country are owed a large sum by the States, and the States in its turn is owed a large sum by these and other taxpayers. The whole position is in the highest degree artificial, misleading, and vexatious. We shall never be able to move again, unless we can free our limbs from these paper shackles.

The aim was to regulate the value of money by increasing or diminishing the quantity of it. The effects of these measures appeared to provide an inductive proof of the correctness of this superficial version of the Quantity Theory, and incidentally concealed the weaknesses of its logic.

History shows that where ethics and economics come in conflict, victory is always with economics. Vested interests have never been known to have willingly divested themselves unless there was sufficient force to compel them.

The forgotten man. He is the clean quiet virtuous domestic citizen who pays his debts and his taxes and is never heard of outside his little circle. ... He works he votes generally he prays but his chief business in life is to pay.

ethanol may actually make some kinds of air pollution worse. It evaporates faster than pure gasoline, contributing to ozone problems in hot temperatures. A 2006 study published in the Proceedings of the National Academy of Sciences concluded that ethanol does reduce greenhouse gas emissions by 12 percent relative to gasoline, but it calculated that devoting the entire U.S. corn crop to make ethanol would replace only a small fraction of American gasoline consumption. Corn farming also contributes to environmental degradation due to runoff from fertilizer and pesticides.But to dwell on the science is to miss the point. As the New York Times noted in the throes of the 2000 presidential race, ―Regardless of whether ethanol is a great fuel for cars, it certainly works wonders in Iowa campaigns. The ethanol tax subsidy increases the demand for corn, which puts money in farmers‘ pockets. Just before the Iowa caucuses, corn farmer Marvin Flier told the Times, ―Sometimes I think [the candidates] just come out and pander to us, he said. Then he added, ―Of course, that may not be the worst thing. The National Corn Growers Association figures that the ethanol program increases the demand for corn, which adds 30 cents to the price of every bushel sold.Bill Bradley opposed the ethanol subsidy during his three terms as a senator from New Jersey (not a big corn-growing state). Indeed, some of his most important accomplishments as a senator involved purging the tax code of subsidies and loopholes that collectively do more harm than good. But when Bill Bradley arrived in Iowa as a Democratic presidential candidate back in 1992, he ―spoke to some farmers‖ and suddenly found it in his heart to support tax breaks for ethanol. In short, he realized that ethanol is crucial to Iowa voters, and Iowa is crucial to the presidential race.

I’d volunteer to go to prison, as long as there are books. Because with books I am free.

Ignorance never yet helped anybody.

If the objective exchange-value of money must always be linked with a pre-existing market exchange-ratio between money and other economic goods (since otherwise individuals would not be in a position to estimate the value of the money), it follows that an object cannot be used as money unless, at the moment when its use as money begins, it already possesses an objective exchange-value based on some other use.

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.

There is danger in reckless change but greater danger in blind conservatism.

A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.

The businessman is only tolerable so long as his gains can be held to bear some relation to what, roughly and in some sense, his activities have contributed to society.

The Hindus criticise the Mahomedans for having spread their religion by the use of the sword. They also ridicule Christianity on the score of the Inquisition. But really speaking, who is better and more worthy of our respect—the Mahomedans and Christians who attempted to thrust down the throats of unwilling persons what they regarded as necessary for their salvation, or the Hindu who would not spread the light, who would endeavour to keep others in darkness, who would not consent to share his intellectual and social inheritance with those who are ready and willing to make it a part of their own make-up? I have no hesitation in saying that if the Mahomedan has been cruel, the Hindu has been mean; and meanness is worse than cruelty.

People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.

When people get used to preferential treatment, equal treatment seems like discrimination.

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.

If the possessor of a units of money receives h additional units, then it is not at all true to say that he will value the total stock a + h exactly as highly as he had previously valued the stock a alone. Because he now has disposal over a larger stock, he will now value each unit less than he did before; but how much less will depend upon a whole series of individual circumstances, upon subjective valuations that will be different for each individual.

Justice has always evoked ideas of equality, of proportion of compensation. Equity signifies equality. Rules and regulations, right and righteousness are concerned with equality in value.If all men are equal, then all men are of the same essence, and the common essence entitles them of the same fundamental rights and equal liberty... In short justice is another name of liberty, equality and fraternity.

War has been the necessary and inevitable consequence of the establishment of a monopoly on security.