After all, the American society has been also based on the premise of expanding education very early. That's been [one] of the main sources of success of the Americans. And there is something that the world can learn from it and also be assisted by the United States along with Europe and the rest of the world. I really hope that this is an issue that engages the American public.

When the industrial revolution happened there was the Luddistic movement, and there was a fear that machinery would replace all the labor. Whenever we had a technological revolution we had this fear. So if you look backwards, these fears were not justified, and I think they were driven by our very human inability to visualize what new jobs will be created by this new technology.

It is a popular error that bureaucracy is less flexible than private enterprise. It may be so in detail, but when large scale adaptations have to be made, central control is far more flexible. It may take two months to get an answer to a letter from a government department, but it takes twenty years for an industry under private enterprise to readjust itself to a fall in demand.

Those who had been riding the upward wave decide now is the time to get out. Those who thought the increase would be forever find their illusion destroyed abruptly, and they, also, respond to the newly revealed reality by selling or trying to sell. And thus the rule, supported by the experience of centuries: the speculative episode always ends not with a whimper but with a bang.

I've always been sceptical about the notion that the market is a person you can engage in an argument with, and that that person is an intelligent, rational, well-intentioned person: it is fantasy. We know that ... the market is subject to irrational optimism and pessimism, and is vindictive ... You're dealing with a crazy man ... Having got what he wants he will still kill you.

More frightening to me than any policy or politician is the ease with which the public is played for fools with words. The latest example is the 'Employee Freedom of Choice Act,' a bill that will do away with secret ballot elections among workers voting on whether to be represented by a union. It is an open invitation to intimidation - which is to say, loss of freedom of choice.

When under the pretext of fraternity, the legal code imposes mutual sacrifices on the citizens, human nature is not thereby abrogated. Everyone will then direct his efforts toward contributing little to, and taking much from, the common fund of sacrifices. Now, is it the most unfortunate who gains from this struggle? Certainly not, but rather the most influential and calculating.

It takes time and experience to absorb new technologies, so technologically backward producers need a period of protection from international competition during this period of learning. Such protection is costly, because the country is giving up the chance to import better and cheaper products. However, it is a price that has to be paid if it wants to develop advanced industries.

In U.S. history, war has served as an important diversionary tactic, causing the people at large to shift their attention away from the state's own criminality and toward real or fictitious devils abroad. Wars have therefore proved to be extremely useful in propping up the political class and preserving it from the public resistance and rebellion that might otherwise have arisen.

The gun-control crusade today is like the Prohibition crusade 100 years ago. It is a shared zealotry that binds the self-righteous know-it-alls in a warm fellowship of those who see themselves as fighting on the side of the angels against the forces of evil. It is a lofty role that they are not about to give up for anything so mundane as facts - or even the lives of other people.

Private property in the instruments of production is an institutional device both for dispersing power and for securing effective organization of production. The only simple property system is that of a slave society with a single slave owner - which, significantly, is the limiting case of despotism and of monopoly. Departure from such a system is a fair measure of human progress.

I trace the inequality to a particular set of decisions that we took when we lowered the tax rate from 91% down to very low levels at the top, where we stripped away regulations. So the result of that was not a more dynamic economy, but a more unequal society. We tried the experiment of trickle-down. A third of a century later, we can say fairly definitively that it was a failure.

It is clear that the building of models is not a purely mechanical process but requires skill of a high order - not merely mathematical skill but a sensitivity to the relative importance of different factors and a critical, almost an artistic, faculty in the selection of behaviour equations which are reasonable, tentative hypotheses in explaining the behaviour of actual economies.

Eighty five percent of Americans, year in and year out, say they believe everyone should have universal coverage. The problem is everybody has a different idea of how to make it work. And unfortunately what you have is 85 percent of Americans are reasonably well-insured. And when you start thinking about how you're going to get the remaining 15 percent, everyone gets very nervous.

The point is that families today are spending their money no more foolishly than their parents did. And yet they're five times more likely to go bankrupt, and three times more likely to lose their homes. Families are going broke on the basics - housing, health insurance, and education. These are the kind of bills that you can't just trim around the edges in the event of a downturn.

If you look at the performance of the zero-income-tax-rate states and the highest-income-tax-rate states, I believe a large amount of their difference is due to taxes. Not only is it true of the last decade, but I took these numbers back 50 years. And, there's not one year in the last 50 where the zero-income-tax-rate states have not outperformed the highest-income-tax-rate states.

The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a manner as nearly consistent as possible with full utilization of economic resources and low and stable inflation. In other words, the best way to get out of trouble is not to get into it in the first place.

The real accomplishment of modern science and technology consists in taking ordinary men, informing them narrowly and deeply and then, through appropriate organization, arranging to have their knowledge combined with that of other specialized but equally ordinary men. This dispenses with the need for genius. The resulting performance, though less inspiring, is far more predictable.

All of the progress that the US has made over the last couple of centuries has come from unemployment. It has come from figuring out how to produce more goods with fewer workers, thereby releasing labor to be more productive in other areas. It has never come about through permanent unemployment, but temporary unemployment, in the process of shifting people from one area to another.

Growth is the mantra of our society because the economy can't remain healthy without growth.Impregnable monopolies aside (and these are few), profits are both the hallmark of capitalism and its Achilles heel, for no business can permanently maintain its prices much above its costs. There is only one way in which profits can be perpetuated; a business-or an entire economy-must grow.

People who believe in 'universal health care' show remarkably little interest - usually none - in finding out what that phrase turns out to mean in practice, in those countries where it already exists, such as Britain, Sweden or Canada. For one thing, 'universal health care' in these countries means months of waiting for surgery that Americans get in a matter of weeks or even days.

Men follow their sentiments and their self-interest, but it pleases them to imagine that they follow reason. And so they look for, and always find, some theory which, a posteriori, makes their actions appear to be logical. If that theory could be demolished scientifically, the only result would be that another theory would be substituted for the first one, and for the same purpose.

It were good to know how much hay an acre of every sort will bear; how many cattle the same weight of each sort of hay will feed and fatten; what quantity of grain and other commodities the same acre will bear in one, three or seven years; unto what use each soil is proper; all which particulars I call intrinsic value, for there is also another value merely accidental or extrinsic.

If, for example, each of us had the same share of capital in the national total capital, then if the share of capital goes up it's not a problem, because you get as much as I do. The problem is that capital in capitalist countries is very heavily concentrated, especially financial capital. So then if the share of income from that source goes up, that actually exacerbates inequality.

The free market exists to promote prosperity and human life, and that is what it has accomplished, splendidly, with breathtaking brilliance. In the industrialized world, the average person today enjoys a standard of living superior to that of kings and emperors of the past. The whole world's population is capable of enjoying the same marvelous results, if it adopts economic freedom.

Racial problems can't be easily reconciled with a pat account about racism and discrimination that lets us sort of relax into saying when we finally get this right, when we get rid of racism, when we reach the post-racial society, everything is going to be okay. Well, no, because along the way here, as we've not yet been in this racial nirvana, facts on the ground have been created.

You will find that hardly a soul who will say that it was a bad thing. Almost everybody will say it was a good thing. 'But what about today? Do you think we should have free immigration?' 'Oh, no,' they'll say, 'We couldn't possibly have free immigration today. Why, that would flood us with immigrants from India, and God knows where. We'd be driven down to a bare subsistence level.'

You know that Republicans will yell about the evils of partisanship whenever anyone tries to make a connection between the rhetoric of Beck, Limbaugh, etc. and the violence I fear we’re going to see in the months and years ahead. But violent acts are what happen when you create a climate of hate. And it’s long past time for the GOP’s leaders to take a stand against the hate-mongers.

Well, you can do whatever you want, but just don’t call it inequality. Put the word poverty there. Because we have many rich people on our board, and when they see the word poverty that makes them feel good, because [it means] they’re really nice people who care about the poor. When they see the word inequality it makes them upset, because [it means] you want to take money from them.

If nonsatiety were the natural state of human nature then aggressive want-stimulating advertising would not be necessary, nor would the barrage of novelty aimed at promoting dissatisfaction with last year's model. The system attempts to remake people to fit its own presuppositions. If people's wants are not naturally insatiable we must make them so, in order to keep the system going.

In general, the nightmare quality of Marx's thought gives it, in this bedevilled age, an air of greater reality than the gentle complacency of the orthodox academics. Yet he, at the same time, is more encouraging than they, for he releases hope as well as terror from Pandora's box, while they preach only the gloomy doctrine that all is for the best in the best of all possible worlds.

As the work progresses the careful reader will insert mental interrogation points here and there. He will find that his interest increases as the interrogation points become more frequent, and that it culminates where they are changed to marks of positive dissent. I venture to record the opinion that the value of the work reaches a maximum in a passage that is demonstrably incorrect.

There's no question that in my lifetime, the contrast between what I called private affluence and public squalor has become very much greater. What do we worry about? We worry about our schools. We worry about our public recreational facilities. We worry about our law enforcement and our public housing. All of the things that bear upon our standard of living are in the public sector.

Finance ministers and central bank governors have the seats at the table, not labor unions or labor ministers. Finance ministers and central bank governors are linked to financial communities in their countries, so they push policies that reflect the viewpoints and interests of the financial community and barely hear the voices of those who are the first victims of dictated policies.

If capitalism worked as the socialists think an economic system ought to work, and provided a constant equality of living conditions for all, regardless of whether a man was able or not, resourceful or not, diligent or not, thrifty or not, if capitalism put no premiums on resourcefulness and effort and not penalty on idleness or vice, it would produce only an equality of destitution.

Neither your life nor my life, nor the future of this country, will be affected in the slightest by whether Linda Tripp is naughty or nice. But if any president is able to commit crimes with impunity by using the vast powers and perquisites of his office to cover up, then we will have a danger of corruption and abuse of power that can only grow with the passing years and generations.

Socialism, like the ancient ideas from which it springs, confuses the distinction between government and society. As a result of this, every time we object to a thing being done by government, the socialists conclude that we object to its being done at all . . . . It is as if the socialists were to accuse us of not wanting persons to eat because we do not want the state to raise grain

With joint-stock corporations, investors can place bets on the success of many different companies, without having to play a central management role in any one of them. This allows investors to diversify their financial holdings. It also allows them to capture profits on their investments, without having to get involved in the dirty, troublesome business of actually running a company.

There has been plenty to criticize about President Obama’s handling of the economy. Yet the overriding story of the past few years is not Mr. Obama’s mistakes but the scorched-earth opposition of Republicans, who have done everything they can to get in his way - and who now, having blocked the president’s policies, hope to win the White House by claiming that his policies have failed.

Capitalism is based on self-interest and self-esteem; it holds integrity and trustworthiness as cardinal virtues and makes them pay off in the marketplace, thus demanding that men survive by means of virtue, not vices. It is this superlatively moral system that the welfare statists propose to improve upon by means of preventative law, snooping bureaucrats, and the chronic goad of fear.

Opportunity could be defined in so many ways. There's one way of defining it, equality of opportunity, which is in fact the equality of capability, but the libertarians got there first and they have - like the Americans getting onto the moon, naming every crater after something like an astronaut - they have got there and named "opportunity" in a way that we cannot get ownership of now.

When I was giving a lecture in India, the capabilities that I have to be concerned with there, namely the ability of people to go to a school, to be literate, to be able to have a basic health care everywhere, to be able to seek some kind of medical response to one's ailment; these become central issues in the Indian context which they're not in the UK, because you're well beyond that.

Unlike national markets, which tend to be supported by domestic regulatory and political institutions, global markets are only 'weakly embedded'. There is no global lender of last resort, no global safety net, and of course, no global democracy. In other words, global markets suffer from weak governance, and are therefore prone to instability, inefficiency, and weak popular legitimacy.

... both individuals and companies are using the Netherlands as a haven for productive activity. ... This is good news for all taxpayers. The rich directly benefit, since greedy politicians are unable to seize as much of their money. And the rest of us benefit, since this puts downward pressure on tax rates as governments try to keep the geese that lay the golden eggs from flying away.

The country that's been most successful at that is Norway. The more typical countries are those in the Middle East where a small group seizes those resources, uses it to buy arms to make sure that they can oppress the remainder, and you get these great inequalities. So Canada is among the better performing of the natural resource economies, but it's still not up to the best performing.

Why have we had such a decline in moral climate? I submit to you that a major factor has been a change in the philosophy which has been dominant, a change from belief in individual responsibility to belief in social responsibility. If you adopt the view that a man is not responsible for his own behavior, that somehow society is responsible, why should he seek to make his behavior good?

One of the problems with trying to help underdogs, especially with government programs, is that they and everyone else start to think of them as underdogs, focusing on their problems rather than their opportunities. Thinking of themselves as underdogs can also dissipate their energies in resentments of others, rather than spending that energy making the most of their own possibilities.

Milton Friedman had the grace and good sense to recognize that he wanted to talk to the general public. He wasn't going to just lecture to the people who happened to appear in his classroom in Chicago or on some lecture circuit. He went out to talk to the general public, believing that you had to convince a democratic nation to change its ways, and he succeeded to a considerable extent.

You compare the nation to a parched piece of land and the tax to a life-giving rain. So be it. But you should also ask yourself where this rain comes from, and whether it is not precisely the tax that draws the moisture from the soil and dries it up. You should also ask yourself further whether the soil receives more of this precious water from the rain than it loses by the evaporation?

A small group is powerful in matters relating to a particular industry, because then it is normally the only organized force, but it is less formidable when questions which divide the entire nation are involved, for then it must take on organized labor and other large organized groups. The business community in the aggregate is for this reason not uniquely effective as a pressure group.

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