If we are really serious about preventing another crisis like the 2008 meltdown we should simply ban complex financial instruments, unless they can be unambiguously shown to benefit society in the long run. This is what we do all the time with other products-drugs, cars, electrical products and many others.

People always think they're in the middle of a revolution while they tend not to realize the enormity of a change that has happened in the past. The telegraph was a revolution, but who looks at it that way these days? The telegraph sped up the transportation of messages over long distances by a huge factor.

Newton was not the first of the age of reason. He was the last of the magicians, the last of the Babylonians and Sumerians, the last great mind that looked out on the visible and intellectual world with the same eyes as those who began to build our intellectual inheritance rather less than 10,000 years ago.

Corporate social responsibility is measured in terms of businesses improving conditions for their employees, shareholders, communities, and environment. But moral responsibility goes further, reflecting the need for corporations to address fundamental ethical issues such as inclusion, dignity, and equality.

The proper role of government is exactly what John Stuart Mill said in the middle of the 19th century in "On Liberty." The proper role of government is to prevent other people from harming an individual. Government, he said, never has any right to interfere with an individual for that individual's own good.

I was born in Jamaica but was educated by, and now serve, prestigious First World institutions, so I believe that I have a unique, dual perspective. To sidestep any biases I might have, I use the objective lens of the stock market to discover which policies actually delivered prosperity to emerging markets.

People worry that if they buy an annuity and then die before the policy starts to pay off, their heirs will lose out. I tell them, "What you should be more worried about is if you outlive your money, you will have to move in with your kids. Ask your kids which of these outcomes they are more worried about."

In general, presidents and congressmen have very limited power to do good for the economy and awesome power to do bad. The best good thing that politicians can do for the economy is to stop doing bad. In part, this can be achieved through reducing taxes and economic regulation, and staying out of our lives.

I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people save too much during that period? I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning.

Now I can broadcast to an audience of several million people on the 'Today' programme. I can talk about the day's news. But on radio, believe it or not, we have notes and scripts. And while we might ad lib the odd wryly amusing asides, they come at the frequency of a suburban bus. About one every 90 minutes.

If we did not have a patent system, it would be irresponsible, on the basis of our present knowledge of its economic consequences, to recommend instituting one. But since we have had a patent system for a long time, it would be irresponsible, on the basis of our present knowledge, to recommend abolishing it.

I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not really equity. And therefore, it's not clear that anything which improves the equity markets has really much to do with the productivity of the economy as a whole.

Hillary Clinton would raise taxes on so-called rich people, corporations, capital gains, financial transactions, and inheritance. Has there ever been an example where America has taxed its way into prosperity? Never. Trump has an economic-recovery-and-prosperity plan. Clinton has an austerity-recession plan.

Briefly, the State is that organization in society which attempts to maintain a monopoly of the use of force and violence in a given territorial area; in particular, it is the only organization in society that obtains its revenue not by voluntary contribution or payment for services rendered but by coercion.

Instead of a bumbling and inefficient tool of society, the radical [libertarian] sees the State itself, in its very nature, as coercive, exploitative, parasitic, and hence profoundly antisocial. The State is, and always has been, the great single enemy of the human race, its liberty, happiness, and progress.

I believe investors should invest for the long run, so I don't buy and sell. I usually maintain the classic index of global equities, diversified U.S. and global and emerging markets, and when the risk is larger, I diminish the amount in global equities and put more into liquid assets - but very irregularly.

I think the credit default swaps can take the place of the rating agencies who really have missed the ball in this procedure and are quite conflicted by the way the ratings are paid for. So, I would like to see credit default swaps become an evermore important way of understanding credit risk in the economy.

The obsessive focus on a college degree has served neither taxpayers nor students well. Only 35 percent of students starting a four-year degree program will graduate within four years, and less than 60 percent will graduate within six years. Students who haven't graduated within six years probably never will.

Thus, the capital owner is not a parasite or a rentier but a worker - a capital worker. A distinction between labor work and capital work suggests the lines along which we could develop economic institutions capable of dealing with increasingly capital-intensive production, as our present institutions cannot.

Had drugs been decriminalized, crack would never have been invented and there would today be fewer addicts... The ghettos would not be drug-and-crime-infested no-man's lands... Colombia, Bolivia and Peru would not be suffering from narco-terror, and we would not be distorting our foreign policy because of it.

The Great Depression was not a sign of the failure of monetary policy or a result of the failure of the market system as was widely interpreted. It was instead a consequence of a very serious government failure, in particular a failure in the monetary authorities to do what they'd initially been set up to do.

I agree with a lot of the points in Taleb's book, but I don't agree with many of his conclusions. It seems to me that he rightly points out that risk managers miss a lot of the risks, but the conclusion is that he draws, is that we should abandon risk management, whereas my conclusion is we should improve it.

You know, some of the portfolios we might consider buying are portfolios which would do especially well if we have an economy-wide, or I mean, a global climate change that impacts us very negatively there are some companies that will do well, and so it might make sense to hold some of those in your portfolio.

When a health policy analyst went to heaven, he asked God the same question: 'Will America ever have a single-payer system?' And God said, 'Absolutely. Just not in my lifetime.' I'm afraid that little story is true. Americans just are not prepared to let government be responsible for all of their health care.

Profit is vital to human well-being. Profit is the payment to entrepreneurs just as wages are payments to labor, interest to capital and rent to land. In order to earn profits in free markets, entrepreneurs must identify and satisfy human wants and do so in a way that economizes on society's scarce resources.

The higher education has always appealed to the South Asian social leaders across all the countries in South Asia. But primary education has been neglected. The oddity, by the way, is if you look at the contrast in India, there are some areas like Kerala where there's a long history of educational development.

When I look at the many energy-using sectors - such as businesses, households, electricity generators, the transportation sector - I see that the business sector is the one which uses the energy efficiency potential the highest, because they know that using energy more efficiently will also reduce their costs.

Firms don't just try to pay as little as possible to get the needed bodies on board; when there is unemployment, they ask themselves how wage cuts would affect the behavior of the employees. Would they quit or feel dissatisfied and work less hard on the firm's behalf if they feel that wage policies are unfair?

I've long believed alas, that in highly organized industrial societies, capitalist or socialist, the stronger tendency is to converge - that if steel or automobiles are wanted and must be made on a large scale, the process will stamp its imprint on the society, whether that me be Magnitogorsk or Gary, Indiana.

The years of the Great Depression were a superb time for economists because people not knowing what could be done or what should be done would always assume that maybe an economist had the answer. If you were just a lawyer in Washington, you were nobody. But if you were an economist, you might have the answer.

All of the youth ferment on campuses is a very good thing. Lots of people are being permanently transformed and will do good thing throughout their lives. However, young people must be careful not to be coopted, even by labor unions and the like. They must keep their eye on a radical transformation of society.

. . I think the Adam Smith role was played in this cycle i.e. the late twentieth century collapse of socialism in which the idea of free-markets succeeded first, and then special events catalyzed a complete change of socio-political policy in countries around the world by Friedrich Hayek's The Road to Serfdom.

The very essence of political philosophy is the carving out of an ethical system - strictly, a subset of ethics dealing with political ethics. Ethics is the one rational discipline that demands the establishment of a rational set of value judgments; political ethics is that subset applying to matters of State.

Keynesian modelling relies on marginal propensity to consume and marginal propensity to invest. The idea that if we give more money to the poor, they have a propensity to consume that's much higher than the wealthy, though I wish they would talk to my wife about that; she seems to have a propensity to consume.

Mea culpa, mea culpa. MIT and Wharton and University of Chicago created the financial engineering instruments, which, like Samson and Delilah, blinded every CEO. They didn't realize the kind of leverage they were doing and they didn't understand when they were really creating a real profit or a fictitious one.

American feminists have generally stressed the ways in which men and women should be equal and have therefore tried to put aside differences.... Social feminists [in Europe]believe that men and society at large should provide systematic support to women in recognition of their dual role as mothers and workers.

The reason so many people misunderstand so many issues is not that these issues are so complex, but that people do not want a factual or analytical explanation that leaves them emotionally unsatisfied. They want villains to hate and heroes to cheer - and they don't want explanations that do not give them that.

Not only is patriotism disdained, the very basis for pride in one's country and culture is systematically undermined in our educational institutions at all levels. The achievements of western civilization are buried in histories that portray every human sin found here as if they were peculiarities of the west.

More than half of all people filing income tax forms use someone else to prepare the forms for them. Then they have to sign under penalty of perjury that these forms are correct. But if they were competent to determine that, why would they have to pay someone else to do their taxes for them in the first place?

Apart from the seemingly magical Internet, life in broad material terms isn't so different from what it was in 1953... The wonders portrayed in 'The Jetsons,' the space-age television cartoon from the 1960s, have not come to pass... Life is better and we have more stuff, but the pace of change has slowed down.

I think higher ed in the U.S. is fairly healthy, and by global standards it dominates, and it makes people more productive. But a lot of our K-12 is a disaster. And the single most important reform would just be to fire the worst ten or 15 percent of teachers in the lot, and we would have massive improvements.

If the government is vulnerable to public opinion, then famines are a dreadfully bad thing to have. You can’t win many elections after a famine, and you don’t like being criticized by newspapers, opposition parties in parliament, and so on. Democracy gives the government an immediate political incentive to act.

As I write in the book, I do not regret either of my votes for President [Barack] Obama, nor my support of him when he ran for the Senate before that. I get excited as I ever did when I see that black man on Air Force One. But I won't settle for symbolism, and our President's record should be open for analysis.

All workers, whether they are employed in the private or public sector, should avoid living 'paycheck to paycheck.' Studies show that every household wastes 10% or more of its salary or income on unnecessary expenditures or by not taking the time to shop for better prices. It's all a matter of proper budgeting.

Throughout history governments have been chronically short of revenue. The reason should be clear: unlike you and me, governments do not produce useful goods and services that they can sell on the market; governments, rather than producing and selling services, live parasitically off the market and off society.

I do not go so far as the extreme male 'sexists' who contend that women should confine themselves to the home and children and that any search for alternative careers is unnatural. On the other hand, I do not see much more support for the opposite contention that domestic-type women are violating their natures.

How is it that, in the face of overwhelming scientific evidence, there are still some who would deny the dangers of climate change? Not surprisingly, the loudest voices are not scientific, and it is remarkable how many economists, lawyers, journalists and politicians set themselves up as experts on the science.

The Transatlantic and Transpacific Trade and Investment Partnerships have nothing to do with free trade. 'Free trade' is used as a disguise to hide the power these agreements give to corporations to use lawsuits to overturn sovereign laws of nations that regulate pollution, food safety, GMOs, and minimum wages.

Those who wrote the Constitution clearly understood that power is dangerous and needs to be limited by being separated - separated not only into the three branches of the national government but also separated as between the whole national government, on the one hand, and the states and the people on the other.

If you and your skills are a complement to the computer, your wage and labor market prospects are likely to be cheery. If your skills do not complement the computer, you may want to address that mismatch. Ever more people are starting to fall on one side of the divide or the other. That's why 'average is over.'

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