Quotes about economy

The overall system of a sizeable community struggling to survive in a crowded world may be either socialism or privatism. Either system may work, more or less. But, except in non-critical areas of distribution, commonism cannot possibly work for very long.

"The environment has to be balanced against the economy." This quote portrays environmental concerns as a luxury, views measures to solve environmental problems as incurring a net cost, and considers leaving environmental problems unsolved to be a money-saving device. This one-liner puts the truth exactly backwards. Environmental messes cost us huge sums of money both in the short run and in the long run; cleaning up or preventing those messes saves us huge sums in the long run, and often in the short run as well. In caring for the health of our surroundings, just as of our bodies, it is cheaper and preferable to avoid getting sick than to try to cure illnesses after they have developed.

Earth had always operated on a continuous-growth model that requires a poverty class. Sustainable models require productive work by all members and are quite different.

The more a religion is aware of its opposition in principle to economic rationalization as such, the more apt are the religion’s virtuosi to reject the world, especially its economic activities.

It is above all the impersonal and economically rationalized (but for this very reason ethically irrational) character of purely commercial relationships that evokes the suspicion, never clearly expressed but all the more strongly felt, of ethical religions. For every purely personal relationship of man to man, of whatever sort and even including complete enslavement, may be subjected to ethical requirements and ethically regulated. This is true because the structures of these relationships depend upon the individual wills of the participants, leaving room in such relations for manifestations of the virtue of charity. But this is not the situation in the realm of economically rationalised relationships, where personal control is exercised in inverse ratio to the degree of rational differentiation of the economic structure.

A society can neither advance nor improve without excess of disposable income. This excess can only be amassed through the productions of goods and services necessary or attractive to the mass. A financial system which allows this leads to inequality; one that does not leads to mass starvation. Page 10.

A major clash between economics and ecology derives from the fact that nature is cyclical, whereas our industrial systems are linear. Our businesses take resources, transform them into products plus waste, and sell the products to consumers, who discard more waste...

Economics emphasizes competition, expansion, and domination; ecology emphasizes cooperation, conservation, and partnership.

At the core of the failure of the socialist experiment is not just the lack of property rights. Equally important were the problems arising from lack of incentives and competition, not only in the sphere of economics but also in politics. Even more important perhaps were problems of information. Hayek was right, of course, in emphasizing that the information problems facing a central planner were overwhelming. I am not sure that Hayek fully appreciated the range of information problems. If they were limited to the kinds of information problems that are at the center of the Arrow-Debreu model consumers conveying their preferences to firms, and scarcity values being communicated both to firms and consumers then market socialism would have worked. Lange would have been correct that by using prices, the socialist economy could "solve" the information problem just as well as the market could. But problems of information are broader.

The standard neoclassical model the formal articulation of Adam Smith's invisible hand, the contention that market economies will ensure economic efficiency provides little guidance for the choice of economic systems, since once information imperfections (and the fact that markets are incomplete) are brought into the analysis, as surely they must be, there is no presumption that markets are efficient.

Government's role should be only to keep the playing field level, and to work hand in hand with business on issues such as employment. But beyond this, to as great an extent as possible, it should get the hell out of the way.

An area in which more rather than less government involvement is needed, in my judgment, is the rooting out of fraud. It is the bane of any market system.