Quotes of All Topics . Occasions . Authors
Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people should be concerned with in their investment decisions and not with whether they can pick stocks, pick winners and losers among the various managers delivering basically the same product.
...the statement, "The purpose of the law is to cause justice to reign," is not a rigorously accurate statement. It ought to be stated that the purpose of the law is to prevent injustice from reigning. In fact, it is injustice, instead of justice, that has an existence of its own. Justice is achieved only when injustice is absent.
Freedoms and apprenticeships are likewise expedients of police,not of that wholesome branch of police, whose object is the maintenance of the public and private security, and which is neither costly nor vexatious; but of that sort of police which bad governments employ to preserve or extend their personal authority at any expense.
In the United States all business not transacted over the telephone is accomplished in conjunction with alcohol or food, often under conditions of advanced intoxication. This is a fact of the utmost importance for the visitor of limited funds... for it means that the most expensive restaurants are, with rare exceptions, the worst.
We measure poverty by what I believe is a very, very crude concept. We actually measure poverty by trying to get some kind of an estimate of the minimum expenditures on food that are required to maintain health, multiplying that number by three, and saying that's the level of poverty. And it's a very crude, inaccurate arrangement.
The rich believe that they're different and that it is their right to pay a much lower tax rate. The response that you see from people on Wall Street, their dismissal and their almost contempt for the concerns about their culpability in the financial crisis, about the income inequality, shows that they are completely out of touch.
The trouble with much of the advice business is getting today about the need to be more vigorously creative is, essentially, that its advocates have generally failed to distinguish between the relatively easy process of being creative in the abstract and the infinitely more difficult process of being innovationist in the concrete.
No individual and no generation has had enough personal experience to ignore the vast experience of the human race that is called history. Yet most of our schools and colleges today pay little attention to history. And many of our current policies repeat mistakes that were made, time and again, in the past with disastrous results.
The supermarket chain Whole Foods has quite a radical employee empowerment program, where employees get to decide whether another employee can work in their team or not. If they think this person's a slacker, doesn't have good ideas, they can vote and say, no, we don't want this person to be working with us on the vegetable aisle.
Even though some down payments are borrowed, it would take a large, and historically most unusual, fall in home prices to wipe out a significant part of home equity. Many of those who purchased their residence more than a year ago have equity buffers in their homes adequate to withstand any price decline other than a very deep one.
The chief point we must remember is that the great and rapid advance of the physical sciences took place in fields where it proved that explanation and prediction could be based on laws which accounted for the observed phenomena as functions of comparatively few variables - either particular facts or relative frequencies of events.
It is almost as hard to define mathematics as it is to define economics, and one is tempted to fall back on the famous old definition attributed to Jacob Viner, "Economics is what economists do," and say that mathematics is what mathematicians do. A large part of mathematics deals with the formal relations of quantities or numbers.
What's the difference? How can people be so inconsistent? Why is it that free immigration was a good thing before 1914 and free immigration is a bad thing today? Well, there is a sense in which that answer is right. There's a sense in which free immigration, in the same sense as we had it before 1914 is not possible today. Why not?
Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-co-ordinator, who directs production.
Often, economists spend their energies squabbling with one another, but arguably the more important contrast is between our broadly liberal economic worldview and the various alternatives - common around the globe - that postulate natural hierarchies of religion, ethnicity, caste and gender, often enforced by law and strict custom.
We will not make inroads into the gun-violence problem until we acknowledge the underlying causes of youth behavior today, compared to yesterday. ... we must come to the realization that laws and regulations alone cannot produce a civilized society. It's morality that is society's first line of defense against uncivilized behavior.
A carbon tax by itself would make driving more expensive, that's very true. But in exchange for that, there are going to be more jobs, more output, more employment, and more products available. So really, as long as you're going to collect the revenues you're going to collect, you're going to have to trade off one tax for the other.
LABOUR, like all other things which are purchased and sold, and which may be increased or diminished in quantity, has its natural and its market price. The natural price of labour is that price which is necessary to enable the labourers, on with another, to subsist and to perpetuate their race, without either increase or diminution.
Economics works great for planning your life when you don't have a work passion, since we tend to assume that your job delivers only money and you trade off job hours with leisure hours. If you think your job will just be a job, pick one that pays well per hour and leaves you some time off, even if the activity of the job is boring.
The whole system is under tremendous strain. Although the increasing pace of change is essential for developing new solutions, it is also pushing society to its limits. In global structures, it all comes to a head in the form of sudden crises. This leads to tipping point situations in which the seemingly impossible becomes possible.
To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection -- a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end.
This relationship is the foundation for the argument, made by some trade unionists and labour advocates, that high wages can actually be "good for business". The precedent set by Henry Ford in 1914, who offered workers $5.00 per day (a very high wage at the time) so they could afford to buy the same cars they made, is often invoked.
It is much more accurate to identify the factors of production as know-how (that is genetic information structure), energy, and materials, for, as we have seen, all processes of production involve the direction of energy by some know-how structure toward the selection, transportation, and transformation of materials into the product
Europe has grown to 27 member states, encompassing an amazing diversity and richness. Some argue this is part of the problem: Europe is simply too big and culturally disparate to be managed properly. But look to India for an example of how social unity can be forged within a culturally, linguistically, and ethnically complex nation.
Americans think their danger is terrorists. They don't understand the terrorists cannot take away habeas corpus, the Bill of Rights, the Constitution.... The terrorists are not anything like the threat we face from our own government in the name of fighting terrorism.... The American constitutional system is near to being overthrown
The assumption that spending more of the taxpayer's money will make things better has survived all kinds of evidence that it has made things worse. The black family- which survived slavery, discrimination, poverty, wars and depressions- began to come apart as the federal government moved in with its well-financed programs to “help.”
We have stood up and said continuing growth in the Western world is unjust, inappropriate and potentially destabilising. Having said that, we understand why governments do it, so there is an onus on us to show there are other stories and to identify the institutional innovations you might need in order to arrive at this other place.
Time is running out fast. I think we have maybe a few months -- it could be weeks, it could be days -- before there is a material risk of a fundamentally unnecessary default by a country like Spain or Italy which would be a financial catastrophe dragging the European banking system and North America with it. So they have to act now.
America has the highest standard of living of any major country in the entire world. To maintain and enhance that standard of living, America should continue to embrace those qualities which have made America great: openness and dynamism. Openness to new technologies, new ideas and new people is America's greatest source of strength.
If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these organizers are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?
You have kids growing up in some of the worst circumstances financially, living in some of the worst ghettos, and they succeed. They succeed because an adult figure, typically a mother, maybe a grandmother, nourishes the kid, supports the kid, protects the kid, encourages the kid to succeed. It's as if the environment never happened.
The love of God again makes us free, for it draws us to set a low value on those things wherein we are subject to others - our wealth, our position, our reputation, and our life - and to set a high value on those things which no man can take from us - our integrity, our righteousness, our love for all men, and our communion with God.
[The notion of equilibrium] is a notion which can be employed usefully in varying degrees of looseness. It is an absolutely indispensable part of the toolbag of the economist and one which he can often contribute usefully to other sciences which are occasionally apt to get lost in the trackless exfoliations of purely dynamic systems.
Many and subtle are the ideological weapons that the State has wielded through the centuries. Once excellent weapon has been tradition. The longer that the rule of a State has been able to preserve itself, the more powerful this weapon; for then, the X Dynasty or the Y State has the seeming weight of centuries of tradition behind it.
I believe, unlike people that are totally free-market, laissez-faire fundamentalists, that there is an important role that the government can play - one, in providing public goods, whether it's education, health care, or other things, and two, supervising countercyclical policy - stimulus, whether it's monetary, fiscal, or otherwise.
God wants us to show compassion and understanding toward the unemployed or the poor not because they are poor, but because poor people, with help from those who are already successful, can become rich. And when the poor become rich, all will benefit, because in our modern economy new unemployment is the first sign of economic growth.
What was the good of industrial development, what was the good of all the technological innovations, toil, and population movements if, after half a century of industrial growth, the condition of the masses was still just as miserable as before, and all lawmakers could do was prohibit factory labor by children under the age of eight?
If one sentence were to sum up the mechanism driving the Great Stagnation, it is this: Recent and current innovation is more geared to private goods than to public goods. That simple observation ties together the three major macroeconomic events of our time: growing income inequality, stagnant median income, and the financial crisis.
What we're talking about is the price of goods, all goods, in terms of money. That has nothing to do with unemployment, except for the fact that you get fewer goods. And when you have more money and fewer goods, the amount of dollars per good goes up. It goes up because there are fewer goods and it goes up because there is more money.
The state tends to expand in proportion to its means of existence and to live beyond its means, and these are, in the last analysis, nothing but the substance of the people. Woe to the people that cannot limit the sphere of action of the state! Freedom, private enterprise, wealth, happiness, independence, personal dignity, all vanish.
Characteristically, however, the overthrow of the dictator simply means that there will be another dictator. ... the policies they follow will probably not be radically different. If we look around the world, we quickly realize that these policies will not be radically different from those that would be followed by a democracy either.
Economics should be defined in terms of what it is about. It should be about how people produce things, how people exchange them, how people earn income, how they pay taxes, how the government provides infrastructure with tax revenue, and how it conducts monetary policy. The subject has to be defined in terms of the object of inquiry.
It's actually a tribute to the quality of economics teaching that they have persuaded so many generations of students to believe in so much that seems so counter to what the world is like. Many of the things that I'm going to describe make so much more common sense than these notions that seem counter to what one's eyes see every day.
I think one of the things we learned from the physicists and also the theoretical biologists is the idea that when you're dealing with very complex systems you're going to get a large variety of behavior which can be interpreted as hill climbing, but hill climbing with a lot of modifications, hill climbing with big jumps occasionally.
The organizer who creates roles, who creates the holes that will force the pegs to their shape, is a prime creator of personality itself. When we ask of a man, "What is he?" the answer is usually given in terms of his major role, job, or position in society; he is the place that he fills, a painter, a priest, a politician, a criminal.
When George W. Bush tried to roll back taxpayer exposure to a housing crash via Fannie and Freddie, guess what two senators joined a filibuster of the Bush initiative? Yep... those saviors of the working class, Barack Obama and Hillary Clinton. They went to bat for the housing industry and voted to allow taxpayer exposure to escalate.
People who intend only to seek their own benefit are “led by an invisible hand to serve a public interest which was no part of” their intention. I say that there is a reverse invisible hand: People who intend to serve only the public interest are led by an invisible hand to serve private interests which was no part of their intention.
Obama is very much an establishment sort of guy. The whole image of him as a transcendent figure was based on style rather than substance. If you actually looked at what he said, not how he said it, he said very establishment things. He's a moderate, cautious, ameliorative guy. He tends to gravitate toward Beltway conventional wisdom.
Our ideal society finds it essential to put a rent on land as a way of maximizing the total consumption available to the society. ...Pure land rent is in the nature of a 'surplus' which can be taxed heavily without distorting production incentives or efficiency. A land value tax can be called 'the useful tax on measured land surplus'.
The charge is often made against the intelligentsia and other members of the anointed that their theories and the policies based on them lack common sense. But the very commonness of common sense makes it unlikely to have any appeal to the anointed. How can they be wiser and nobler than everyone else while agreeing with everyone else?