Economics Quotes

As with our earlier worship of saints and facts, there is something silly about grown men and women striving to reduce their vision of themselves and of civilization to bean counting. The message of the competition/efficiency/marketplace Trinity seems to be that we should drop the idea of ourselves developed over two and a half millennia. We are no longer beings distinguished by our ability to think and to act consciously in order to affect our circumstances. Instead we should passively submit ourselves and our whole civilization -- our public structures, social forms and cultural creativity -- to the abstract forces of unregulated commerce. It may be that most citizens have difficulty with the argument and would prefer to continue working on the idea of dignified human intelligence. If they must drop something, they would probably prefer to drop the economists.

The error in this conclusion may be most simply demonstrated by means of an actual example. Let us select for this purpose the monetary history of Austria, which Laughlin also uses as an illustration. From 1859 onwards the Austrian National Bank was released from the obligation to convert its notes on demand into silver, and nobody could tell when the State paper-money issued in 1866 would be redeemed, or even if it would be redeemed at all. It was not until the later 'nineties that the transition to metallic money was completed by the actual resumption of cash payments on the part of the Austro-Hungarian Bank.

The elimination of profit, whatever methods may be resorted to for its execution, must transform society into a senseless jumble.

Our minds become slaves to those we see as having total power to control us and to cause pain to us. We are quick to give up control of ourselves to those who have the power to rule us as long as they also have the power to feed us. This is the fundamental construct of a feudal society.

Our faith in freedom does not rest on the foreseeable results in particular circumstances but on the belief that it will, on balance, release more forces for the good than for the bad.

... toxic derivatives were underpinned by toxic economics, which, in turn, were no more than motivated delusions in search of theoretical justification; fundamentalist tracts that acknowledged facts only when they could be accommodated to the demands of the lucrative faith. Despite their highly impressive labels and technical appearance, economic models were merely mathematized versions of the touching superstition that markets know best, both at times of tranquility and in periods of tumult.

Taxation is the price we pay for failing to build a civilized society. The higher the tax level, the greater the failure. A centrally planned totalitarian state represents a complete defeat for the civilized world, while a totally voluntary society represents its ultimate success.

There's a way that money is freedom, but it isn't money, it's that money stands for having a choice.

There is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud

The experience of history should lead us to hope and strive to make the world better, not to despair and resign ourselves to fate.

In those meetings, I learned that even economic diagrams needn’t be linear. Ours was a nest of concentric circles, and an enterprise was measured by its value to each circle, from the individual and family to the community and environment. I realized that Rebecca and her colleagues were trying to do nothing less than transform the System of National Accounts, the statistical framework here and in most countries for measuring economic activity. For instance, the value of a tree depends on its estimated value or sale price, but if it is sold and cut down, there is no accounting on the debit side of the ledger for loss of oxygen, seeding of other trees, or value to the community or the environment. This group was inventing a new way of measuring profit and loss. By the end of our days together, I understood economics in a whole new way. A balance sheet really could be about balance.

Rosamond, accustomed from her childhood to an extravagant household, thought that good housekeeping consisted simply in ordering the best of everything––nothing else 'answered;' and Lydgate supposed that 'if things were done at all, they must be done properly'–he did not see how they were to live otherwise. If each head of household expenditure had been mentioned to him beforehand, he would have probably observed that 'it could hardly come to much,' and if any one had suggested a saving on a particular article–for example, the substitution of cheap fish for dear–it would have appeared to him simply a penny-wise, mean notion.

As technology accumulates and people in more parts of the planet become interdependent, the hatred between them tends to decrease, for the simple reason that you can't kill someone and trade with him too.

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.

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.

The first thing a man will do for his ideals is lie.

It is a choice, and therefore within the province of economics.

A guidance counselor who has made a fetish of security, or who has unwittingly surrendered his thinking to economic determinism, may steer a youth away from his dream of becoming a poet, an artist, a musician or any other of thousands of things, because it offers no security, it does not pay well, there are no vacancies, it has no "future".

Recall that the minimum wage was initially conceived as a method to exclude undesirables from the workforce.

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.

Free-market capitalism is a network of free and voluntary exchanges in which producers work, produce, and exchange their products for the products of others through prices voluntarily arrived at.

To cut 1930s jobless, FDR taxed corps and rich. Govt used money to hire many millions. Worked then; would now again. Why no debate on that?

Of valid economics pre-dating the Power Age (steam and electricity), there remains not a vestige. Of valid economics pre-dating the intensive and extensive use of electricity there will soon exist only rags and tatters. We still have to thank Adam Smith for insisting 'Consumption is the sole end and purpose of production;' but the old form of the law of demand and supply is outmoded, since supply has become practically inexhaustible.

Economists are generally negligent of their heroes.

either on a competitive or a cartel basis.

Congress shall make no law abridging the freedom of production and trade...

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

By buying the power of the workman, the capitalist has, therefore, acquired the right to use of make that labouring power during the whole day or week.

Risk is one of the qualities of any good decision. This is so because, decision itself is a risk. Therefore, making a decision literally means, taking a risk... In tracing the histories of successful men and women, the first thing to notice in their lives is risk.

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.

Economic history shows us a continual increase in the demand for money. The characteristic feature of the development of the demand for money is its intensification; the growth of division of labour and consequently of exchange transactions, which have constantly become more and more indirect and dependent on the use of money, have helped to bring this about, as well as the increase of population and prosperity.

Property monopolized or in the possession of a few is a curse to mankind.

There are sufficient resources in the world for the needs of everybody, but not enough for the greed of even a significant minority.

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.

It appears - because it has been the case for twenty years - that every problem is solvable...that no matter how badly the world economy slumps there is a pain-free way out of it. Once the realization dawns that there is not, and that the pain will be severe, the question is posed that has not really been posed for twenty years: who should feel it?

Under certain conditions, index numbers may do very useful service as an aid to investigation into the history and statistics of prices; for the extension of the theory of the nature and value of money they are unfortunately not very important.

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.

The genuine object of debate raised by the [2008 financial] crisis ought to be how to overcome the short-termism to which we have been led by a consumerism intrinsically destructive of all genuine investment in the future, a short-termism which has systematically, and not accidentally, been translated into decomposition of investment into speculation.

Man is smart - If money would have grown on trees, we would have used green leaves as money.

The man who is admired for the ingenuity of his larceny is almost always rediscovering some earlier form of fraud. The basic forms are all known, have all been practiced. The manners of capitalism improve. The morals may not.

The principle that the end justifies the means is in individualist ethics regarded as the denial of all morals. In collectivist ethics it becomes necessarily the supreme rule.

The ideas of economists and political philosophers, both when they are right and when they are wrong are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist.

In the social production of their existence, men inevitably enter into definite relations, which are independent of their will, namely relations of production appropriate to a given stage in the development of their material forces of production. The totality of these relations of production constitutes the economic structure of society, the real foundation, on which arises a legal and political superstructure and to which correspond definite forms of social consciousness. The mode of production of material life conditions the general process of social, political and intellectual life. It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness. At a certain stage of development, the material productive forces of society come into conflict with the existing relations of production or – this merely expresses the same thing in legal terms – with the property relations within the framework of which they have operated hitherto. From forms of development of the productive forces these relations turn into their fetters. Then begins an era of social revolution. The changes in the economic foundation lead sooner or later to the transformation of the whole immense superstructure.

Government succeeds by failing.

Anyone who says that economic security is a human right, has been to much babied. While he babbles, other men are risking and losing their lives to protect him. They are fighting the sea, fighting the land, fighting disease and insects and weather and space and time, for him, while he chatters that all men have a right to security and that some pagan god—Society, The State, The Government, The Commune—must give it to them. Let the fighting men stop fighting this inhuman earth for one hour, and he will learn how much security there is.

We could manage to survive without money changers and stockbrokers. We should find it harder to do without miners, steel workers and those who cultivate the land

Economics has made good on its promise to deliver prosperity and democratic freedom to much of the world, but in doing away with the age-old problems of humanity, it has opened up a crisis of an entirely new variety.

That policy which aims at raising the objective exchange-value of money is called, after the most important means at its disposal, restrictionism or deflationism. This nomenclature does not really embrace all the policies that aim at an increase in the value of money. The aim of restrictionism may also be attained by not increasing the quantity of money when the demand for it increases, or by not increasing it enough. This method has quite often been adopted as a way of increasing the value of money in face of the problems of a depreciated credit-money standard.

I was quite depressed two weeks ago when I spent an afternoon at Brentano's Bookshop in New York and was looking at the kind of books most people read. Once you see that you lose all hope.

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.

An environment of infinite economic expansion is unsustainable in a world of finite resources.

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.

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

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.

The problem with capitalism is that "we have a global theology without morality, without a Bible." And that's dangerous, he warns - "we're not going to be able to exist in a global context if we are the bastards of our business.

It is because every individual knows little and, in particular, because we rarely know which of us knows best best that we trust the independent and competitive efforts of many to induce the emergence of what we shall want when we see it.

Economics is extremely useful as a form of employment for economists.

Our attitude to these criticisms must be determined by our whole moral and emotional reaction to the future of international relations and the Peace of the World.

Freuchen tells how one day, after coming home hungry from an unsuccessful walrus-hunting expedition, he found one of the successful hunters dropping off several hundred pounds of meat. He thanked him profusely. The man objected indign

Government should never be able to do anything you can't do. If you can't steal from your neighbor, you can't send the government to steal for you.