Best 930 quotes in «economics quotes» category

The cry for an equality of wages rests, therefore, upon a mistake is an inane wish never to be fulfilled. It is an offspring of that false and superficial radicalism that accepts premises and tries to evade conclusions. Upon the basis of the wages system the value of labouring power is settled like that of every other commodity; and as different kinds of labouring power have different values, or require different quantities of labour for their production, they must fetch different prices in the labour market. To clamour for equal or even equitable retribution on the basis of the wages system is the same as to clamour for freedom on the basis of the slavery system. What you think just or equitable is out of the question. The question is: What is necessary and unavoidable with a given system of production? After what has been said, it will be seen that the value of labouring power is determined by the value of the necessaries required to produce, develop, maintain, and perpetuate the labouring power.

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. To the naive mind that can conceive of order only as the product of deliberate arrangement, it may seem absurd that in complex conditions order, and adaptation to the unknown, can be achieved more effectively by decentralizing decisions and that a division of authority will actually extend the possibility of overall order. Yet that decentralization actually leads to more information being taken into account.

The decline of geography in academia is easy to understand: we live in an age of ever-increasing specialization, and geography is a generalist's discipline. Imagine the poor geographer trying to explain to someone at a campus cocktail party (or even to an unsympathetic adminitrator) exactly what it is he or she studies. "Geography is Greek for 'writing about the earth.' We study the Earth." "Right, like geologists." "Well, yes, but we're interested in the whole world, not just the rocky bits. Geographers also study oceans, lakes, the water cycle..." "So, it's like oceanography or hydrology." "And the atmosphere." "Meteorology, climatology..." "It's broader than just physical geography. We're also interested in how humans relate to their planet." "How is that different from ecology or environmental science?" "Well, it encompasses them. Aspects of them. But we also study the social and economic and cultural and geopolitical sides of--" "Sociology, economics, cultural studies, poli sci." "Some geographers specialize in different world regions." "Ah, right, we have Asian and African and Latin American studies programs here. But I didn't know they were part of the geography department." "They're not." (Long pause.) "So, uh, what is it that do study then?

The demoralization that the debase­ment of the currency left in its wake played a major role in bring­ing Adolf Hitler into power in 1933.

The disdain of profit is due to ignorance, and to an attitude that we may if we wish admire in the ascetic who has chosen to be content with a small share of the riches of this world, but which, when actualised in the form of restrictions on profits of others, is selfish to the extent that it imposes asceticism, and indeed deprivations of all sorts, on others.

The dream of a planned, fair, moral, ethical, cash-free society remains strong, particularly among socialists and liberals. It clearly represents a fundamental human instinct. But feudalism just did not work very well, if only because powerful people will not always obey moral imperatives.

The economist may attempt to ignore psychology, but it is sheer impossibility for him to ignore human nature … If the economist borrows his conception of man from the psychologist his constructive work may have some chance of remaining purely economic in character. But if he does not, he will not thereby avoid psychology. Rather, he will force himself to make his own, and it will be bad psychology.

The employment equation used to be built on a foundation of two-way loyalty. The world has changed. Today, successful employment relationships can only be sustained on a foundation of two-way honesty

The emotional pattern seems to be something like, “[Karl] Polanyi, a person of the left like me, says many true things, beautifully. Therefore his tales about what happened in economic history must be true.” Marx before him got similar treatment. Lately the more eloquent of the environmentalists, such as Wendell Berry, get it too. People want to believe that beauty is truth. A supporting emotional frame on the left arises from the very idea of historical progress: “We must be able to do so much better than this wretched capitalism.” It is not true, but it motivates.

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

The essential difference between rich societies and poor societies does not stem from any greater effort the former devote to work, nor even from any greater technological knowledge the former hold. Instead it arises mainly from the fact that rich nations possess a more extensive network of capital goods wisely invested from an entrepreneurial standpoint. These goods consists of machines, tools, computers, buildings, semi-manufactured goods, software, etc., and they exist due to prior savings of the nation's citizens. In other words, comparatively rich societies possess more wealth because they have more time accumulated in the form of capital goods, which places them closer in time to the achievement of much more valuable goals.

The essential quality of a market system, contrary to popular thinking, is not that it promotes greed; but rather, that it renders greed harmless.

The essential of the guild-idea is that [of] men pursuing the same form of activity, but only in cooperation limited to the end of preserving the economic freedom-that is the property and livelihood-of each member of the guild.

the euro, it seems, is stuck in a political no man's land – trapped between two opposing world views. And the battleground is not economics, but ethics.

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

The fact that the United States has political, economic, and legal structures that do indeed create incentives to control hazards (in the workplace) is one the reasons the corporations have moved to Latin America and Asia.

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.

The first enslaving illusion is the idea that people are born to be consumers and that they can attain any of their goals by purchasing goods and services....What people do or make but will not or cannot put up for sale is as immeasurable and as invaluable for the economy as the oxygen they breathe.

The first people to get the new money are the counterfeiters, which they use to buy various goods and services. The second receivers of the new money are the retailers who sell those goods to the counterfeiters. And on and on the new money ripples out through the system, going from one pocket or till to another. As it does so, there is an immediate redistribution effect. For first the counterfeiters, then the retailers, etc. have new money and monetary income they use to bid up goods and services, increasing their demand and raising the prices of the goods that they purchase. But as prices of goods begin to rise in response to the higher quantity of money, those who haven't yet received the new money find the prices of the goods they buy have gone up, while their own selling prices or incomes have not risen. In short, the early receivers of the new money in this market chain of events gain at the expense of those who receive the money toward the end of the chain, and still worse losers are the people (e.g., those on fixed incomes such as annuities, interest, or pensions) who never receive the new money at all.

The focus on the market has made most economists neglect vast areas of our economic life, with significant negative consequences for our well-being. The neglect of production at the expense of exchange has made policy-makers in some countries overly complacent about the decline of their manufacturing industries. The view of individuals as consumers, rather than producers, has led to the neglect of issues such as the quality of work (e.g., how interesting it is, how safe it is, how stressful it is and even how oppressive it is) and work-life balance. The disregard of these aspects of economic life partly explains why most people in the rich countries don’t feel more fulfilled despite consuming the greatest ever quantities of material goods and services. The economy is much bigger than the market. We will not be able to build a good economy — or a good society — unless we look at the vast expanse beyond the market.

The future belongs to the socialism which is democratic, to the democracy which is socialist.

The great hatred of capitalism in the hearts of the oppressed, ancient and modern, I think, stems not merely from the ensuing vast inequality in wealth, and the often unfair and arbitrary nature of who profits and who suffers, but from the silent acknowledgement that under a free market economy the many victims of the greed of the few are still better off than those under the utopian socialism of the well-intended. It is a hard thing for the poor to acknowledge benefits from their rich moral inferiors who never so intended it. (p.272)

The illegal and immoral economic sanctions against #Iran, #Syria & #Venezuela by the #US and all it's western / other lackeys, to subjugate those countries to fall in line with the "American Oligarchal Will" (otherwise known as US foreign policy) amounts to "Economic Terrorism.

The individualism of current economic theory is manifest in the purely self-interested behavior it generally assumes. It has no real place for fairness, malevolence, and benevolence, nor for the preservation of human life or any other moral concern.

The ideal-worker standard and norm of work devotion push mothers to the margins of economic life. And a society that marginalizes its mothers impoverishes its children. That is why the paradigmatic poor family in the United States is a single mother and her child.

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.

Their conversation ceased abruptly with the entry of an oddly-shaped man whose body resembled a certain vegetable. He was a thickset fellow with calloused and jaundiced skin and a patch of brown hair, a frizzy upheaval. We will call him Bell Pepper. Bell Pepper sidled up beside The Drippy Man and looked at the grilled cheese in his hand. The Drippy Man, a bit uncomfortable at the heaviness of the gaze, politely apologized and asked Bell Pepper if he would like one. “Why is one of your legs fatter than the other?” asked Bell Pepper. The Drippy Man realized Bell Pepper was not looking at his sandwich but towards the inconsistency of his leg sizes. “You always get your kicks pointing out defects?” retorted The Drippy Man. “Just curious. Never seen anything like it before.” “I was raised not to feel shame and hide my legs in baggy pants.” “So you flaunt your deformity by wearing short shorts?” “Like you flaunt your pockmarks by not wearing a mask?” Bell Pepper backed away, kicking wide the screen door, making an exit to a porch over hanging a dune of sand that curved into a jagged upward jab of rock. “He is quite sensitive,” commented The Dry Advisor. “Who is he?” “A fellow who once manipulated the money in your wallet but now curses the fellow who does.

The issue of false consciousness is a genuinely difficult problem that has no definite solution. We should not approve of an unequal and brutal society because surveys show that people are happy. But who has the right to tell those oppressed women or starving landless peasants that they shouldn’t be happy, if they think they are? Does anyone have the right to make those people feel miserable by telling them the ‘truth’? There are no easy answers to these questions, but they definitely tell us that we cannot rely on ‘subjective’ happiness surveys to decide how well people are doing.

The individualist insists that drastic depressions are the result of credit inflation; (not excessive savings, as the Keynesians would have it) which at all times in history has been caused by direct government action or by government influence. As for aggravated unemployment, the individualist insists that it is exclusively the result of government intervention through inflation, wage rigidities, burdensome taxes, and restrictions on trade and production such as price controls and tariffs. The inflation that comes inevitably with government pump-priming soon catches up with the laborer, wipes away any real increase in his wages, discourages private investment, and sets off a new deflationary spiral which can in turn only be counteracted by more coercive and paternalistic government policies. And so it is that the "long run" is very soon a-coming, and the harmful effects of government intervention are far more durable than those that are sustained by encouraging the unhampered free market to work out its own destiny.

The law of supply and demand affects money just as it affects pencils and everything else. If there is very little money the money is very valuable and it will buy a great deal. But if there is a lot of money it is not so valuable and it will buy very little .

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

The liberal story cherishes human liberty as its number one value. It argues that all authority ultimately stems from the free will of individual humans, as it is expressed in their feelings, desires and choices. In politics, liberalism believes that the voter knows best. It therefore upholds democratic elections. In economics, liberalism maintains that the customer is always right. It therefore hails free-market principles. In personal matters, liberalism encourages people to listen to themselves, be true to themselves, and follow their hearts – as long as they do not infringe on the liberties of others. This personal freedom is enshrined in human rights.

The lesson I have to teach is this: Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society's legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow. Have faith that free men and women will respond to the Invisible Hand. This faith will be confirmed. I, Pencil, seemingly simple though I am, offer the miracle of my creation as testimony that this is a practical faith, as practical as the sun, the rain, a cedar tree, the good earth.

The majority is almost certainly wrong. If you can, try contributing to the global market, not the local one. If you face excessive regulation or over-taxation, move to another country.

The moral necessity of attaining the ultimate end circumscribes human action in the domestic, the political, the economic and the purely religious spheres. More exactly, we might say that such a conception transforms all activity into a moral activity, and every act into a religious act. And thus man's ultimate end whether he prays, works, studies, does business, eats, or amuses himself, is always God, and that every means that leads him to study, work, do business, eat and so forth, must at the same time be such as to lead him towards his attainment of the Beatific Vision.

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.

The most important question in twenty-first-century economics may well be what to do with all the superfluous people. What will conscious humans do, once we have highly intelligent non-conscious algorithms that can do almost everything better? Throughout history the job market was divided into three main sectors: agriculture, industry and services. Until about 1800, the vast majority of people worked in agriculture, and only a small minority worked in industry and services. During the Industrial Revolution people in developed countries left the fields and herds. Most began working in industry, but growing numbers also took up jobs in the services sector. In recent decades developed countries underwent another revolution, as industrial jobs vanished, whereas the services sector expanded. In 2010 only 2 per cent of Americans worked in agriculture, 20 per cent worked in industry, 78 per cent worked as teachers, doctors, webpage designers and so forth. When mindless algorithms are able to teach, diagnose and design better than humans, what will we do?

The obvious cure for the tragic shortcomings of human intuition in a high-tech world is education. And this offers priorities for educational policy: to provide students with the cognitive tools that are most important for grasping the modern world and that are most unlike the cognitive tools they are born with. The perilous fallacies we have seen in this chapter, for example, would give high priority to economics, evolutionary biology, and probability and statistics in any high school or college curriculum. Unfortunately, most curricula have barely changed since medieval times, and are barely changeable because no one wants to be the philistine who seems to be saying that it is unimportant to learn a foreign language, or English literature, or trigonometry, or the classics. But no matter how valuable a subject may be, there are only twenty-four hours in a day, and a decision to teach one subject is also a decision not to teach another one. The question is not whether trigonometry is important, but whether it is more important than statistics; not whether an educated person should know the classics, but whether it is more important for an educated person to know the classics than to know elementary economics. In a world whose complexities are constantly challenging our intuitions, these trade-offs cannot responsibly be avoided.

The most intensely value-laden artifacts of human creativity - works of art - are now the purist examples of that old capitalist alchemy: turning human value into exchange value. At a certain point, and that point has been passed, the art market will only be a mathematical exchange. Art is worth money, but what’s money worth? Money is the ultimate numbers game. What the furor over the art market brings tantalizingly close to the surface is the fact that it is not just the value of art that is dependant on a shared fantasy, it is also money itself. Warhol is not the name of an artist, it is the name of a currency. “Warhol” is a big number because its denomination (soup cans, Brillo box simulacrums, etc.) is presumed to be stable and growing. But it can inflate or deflate like any stock or bond or national currency. Jeff Koons is also a currency but less stable. The only thing that really changes hands are the numbers that are for some reason associated with these opaque talismans called “artworks.” The billionaire buyers of these works have been reduced to South sea natives who insist on the magical properties of certain queer objects - a cornhusk doll with pearls for eyes and a colourful ribbon about its head - but are unable to say why they are so important or why their world would collapse without them. Investors in the art market need to fear bot only the economic boogies of bubbles and ponzi schemes but also that dreaded moment when they look at one another in panic and say, “What were we thinking? What is this stuff? What could have possessed us to say that a glass balloon dog is worth thens of millions? Sell! Sell!

Then the shit hit the fan.

the ones who are running the world economy have protected themselves very strongly from market discipline. the neo-liberal system is an attack, in my view, both on the market, and on democracy.

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 old rule of forecasting was to make as many forecasts as possible and publicise the ones you got right. The new rule is to forecast so far in the future, no one will know you got it wrong.

The opportunity cost of an unlived dream is not only that dream, but also the dreams the dream was meant to inspire.

The only true and sustainable prosperity is shared prosperity.

The poor stay poor here because they do not save enough.

Theoretically it is, indeed, asserted that the relation between employer and employee is based upon a contract for the accomplishment of a definite purpose. The purpose in this case is social production. But a contract has meaning only when both parties participate equally in the purpose. In reality, however, the worker has today no voice in determining production, for this is given over completely to the employer. The consequence is that the worker is debased by doing a thousand things which constantly serve only to injure the whole community for the advantage of the employer.

The poor man is called a socialist if he believes that the wealth of the rich should be divided among the poor, but the rich man is called a financier if he devises a plan by which the pittance of the poor can be converted to his use.

The problem was how to keep the wheels of industry turning without increasing the real wealth of the world. Goods must be produced, but they must not be distributed.

The problems on campus life today are not about free speech. They are about how the students have absolutely nothing to do with their lives but sit and listen to lectures, find the best parties to attend, and otherwise discover first-world problems to stew about and protest. That's the root of the problem. This is not a commercial environment where people are incentivized to find value in each other. Campuses have become completely artificial 4-year holding tanks for infantilized kids with zero experience in actual life in which people find ways to get along. These students are not serving each other in a market exchange, and very few have worked at day in their lives, so their default is to find some offense and protest. It's all they've been taught to do and all they know how to do. Idle hands and parents' money = trouble.