Economists From The United States

"I think the government solution to a problem is usually as bad as the problem and very often makes the problem worse."

"They had cliche answers but only to their self-created straw-men. To exaggerate only slightly, they had never talked to anyone who really believed, and had thought deeply about, views drastically different from their own. As a result, when they heard real arguments instead of caricatures, they had no answers, only amazement that such views could be expressed by someone who had the external characteristics of being a member of the intellectual community, and that such views could be defended with apparent cogency. Never have I been more impressed with the advice I once received: "You cannot be sure that you are right unless you understand the arguments against your views better than your opponents do.""

"Inflation is the one form of taxation that can be imposed without legislation."

"The problem in this world is to avoid concentration of power - we must have a dispersion of power."

"So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no they do not."

"There was nothing in these views to repel a student; or to make Keynes attractive. Keynes had nothing to offer those of us who had sat at the feet of Simons, Mints, Knight, and Viner."

"Make politics an avocation, not a vocation."

"Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output. … A steady rate of monetary growth at a moderate level can provide a framework under which a country can have little inflation and much growth. It will not produce perfect stability; it will not produce heaven on earth; but it can make an important contribution to a stable economic society."

"Now, when anybody starts talking about this [an all-volunteer force] he immediately shifts language. My army is 'volunteer,' your army is 'professional,' and the enemy's army is 'mercenary.' All these three words mean exactly the same thing. I am a volunteer professor, I am a mercenary professor, and I am a professional professor. And all you people around here are mercenary professional people. And I trust you realize that. It's always a puzzle to me why people should think that the term 'mercenary' somehow has a negative connotation. I remind you of that wonderful quotation of Adam Smith when he said, 'You do not owe your daily bread to the benevolence of the baker, but to his proper regard for his own interest.' And this is much more broadly based. In fact, I think mercenary motives are among the least unattractive that we have."

"I have no right to coerce someone else, because I cannot be sure that I'm right and he is wrong."

"Over the period covered by these data, a drastic change has occurred in the responsibilities undertaken by the state to provide assistance to the aged, unemployed and otherwise dependent. This change has had divergent results on the particular data under discussion. The availability of assistance from the state would clearly tend to reduce the need for private reserves and so to reduce private saving—it is equivalent, in terms of our hypothesis, to a reduction in the variance of transitory components."

"The construction of hypotheses is a creative act of inspiration, intuition, invention; its essence is the vision of something new in familiar material. The process must be discussed in psychological, not logical, categories; studied in autobiographies and biographies, not treatises on scientific method; and promoted by maxim and example, not syllogism or theorem."

"If we are to use effectively these abstract models and this descriptive material, we must have a comparable exploration of the criteria for determining what abstract model it is best to use for particular kinds of problems, what entities in the abstract model are to be identified with what observable entities, and what features of the problem or of the circumstances have the greatest effect on the accuracy of the predictions yielded by a particular model or theory."

"A largely parallel example involving human behavior has been used elsewhere by Savage and me. Consider the problem of predicting the shots made by an expert billiard player. It seems not at all unreasonable that excellent predictions would be yielded by the hypothesis that the billiard player made his shots as if he knew the complicated mathematical formulas that would give the optimum directions of travel, could estimate accurately by eye the angles, etc., describing the location of the balls, could make lightning calculations from the formulas, and could then make the balls travel in the direction indicated by the formulas. Our confidence in this hypothesis is not based on the belief that billiard players, even expert ones, can or do go through the process described; it derives rather from the belief that, unless in some way or other they were capable of reaching essentially the same result, they would not in fact be expert billiard players. It is only a short step from these examples to the economic hypothesis that under a wide range of circumstances individual firms behave as if they were seeking rationally to maximize their expected returns (generally if misleadingly called "profits") and had full knowledge of the data needed to succeed in this attempt; as if, that is, they knew the relevant cost and demand functions, calculated marginal cost and marginal revenue from all actions open to them, and pushed each line of action to the point at which the relevant marginal cost and marginal revenue were equal. Now, of course, businessmen do not actually and literally solve the system of simultaneous equations in terms of which the mathematical economist finds it convenient to express this hypothesis, any more than leaves or billiard players explicitly go through complicated mathematical calculations or falling bodies decide to create a vacuum. The billiard player, if asked how he decides where to hit the ball, may say that he "just figures it out" but then also rubs a rabbit's foot just to make sure; and the businessman may well say that he prices at average cost, with of course some minor deviations when the market makes it necessary. The one statement is about as helpful as the other, and neither is a relevant test of the associated hypothesis."

"Nazis generally did not have to kill in order to seize the property of Germans other than Jews. This was because, as we have seen, they established socialism by stealth, through price controls, which served to maintain the outward guise and appearance of private ownership. The private owners were thus deprived of their property without knowing it and thus felt no need to defend it by force."

"Like the use of the word 'concupiscence' in an earlier age to describe sexual desire, the use of the word 'pollution' to describe essential aspects of the productive activities of an industrial society represents an attempt to defame an entirely proper human capacity by means of using an evil sounding name for it."

"Whoever claims that economic competition represents "survival of the fittest" in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics."

"The truth is that economic competition is the very opposite of competition in the animal kingdom. It is not a competition in the grabbing off of scarce nature-given supplies, as it is in the animal kingdom. Rather, it is a competition in the positive creation of new and additional wealth."

"The slaves of socialism are slaves, but they are no one's property and therefore no one's loss."

"Under communism (socialism), there is no incentive to supply people with anything they need or want, including safety."

"The identification of Nazi Germany as a socialist state was one of the many great contributions of Ludwig von Mises."

"When one remembers that the word "Nazi" was an abbreviation for "der Nationalsozialistische Deutsche Arbeiters Partei" — in English translation: the National Socialist German Workers' Party — Mises's identification might not appear all that noteworthy. For what should one expect the economic system of a country ruled by a party with "socialist" in its name to be but socialism?"

"Private ownership of the means of production existed in name only under the Nazis and that the actual substance of ownership of the means of production resided in the German government. For it was the German government and not the nominal private owners that exercised all of the substantive powers of ownership: it, not the nominal private owners, decided what was to be produced, in what quantity, by what methods, and to whom it was to be distributed, as well as what prices would be charged and what wages would be paid, and what dividends or other income the nominal private owners would be permitted to receive."

"If the individual [in Nazi Germany] is a means to the ends of the State, so too, of course, is his property. Just as he is owned by the State, his property is also owned by the State."

"What specifically established de facto socialism in Nazi Germany was the introduction of price and wage controls in 1936."

"The combination of price controls with this further set of controls constitutes the de facto socialization of the economic system. For it means that the government then exercises all of the substantive powers of ownership."

"The requirements of enforcing a system of price and wage controls shed major light on the totalitarian nature of socialism — most obviously, of course, on that of the German or Nazi variant of socialism, but also on that of Soviet-style socialism as well."

"The enforcement of price controls requires a government similar to that of Hitler's Germany or Stalin's Russia, in which practically anyone might turn out to be a police spy and in which a secret police exists and has the power to arrest and imprison people."

"In any type of socialist state, Nazi or Communist, the government's economic plan is part of the supreme law of the land."

"Roy Cohn and Joe McCarthy will be redeemed when the people have taken back their government from the criminal alliance of Communists, Socialists, New Dealers and the Eisenhower-Dewey Republicans."

"The green movement, in other words, is the red movement stripped of the veneer of reason and science and bent on the destruction of reason and science rather than take the trouble to learn what reason and science actually are. The green movement is the red movement no longer in its boisterous, arrogant youth, but in its demented old age."

"the Progressive Party, with its extravagant claims, has, therefore, imposed on itself the considerable burden of proof. The only party within recent memory which made equally strident claims of fellowship were the Communists, who failed to survive this test; and the only politician of similar claims was, of course, Wallace's erstwhile master, Roosevelt, who did not after all, now that the magic of his voice is gone, succeed in raising the darker brother to the status of a citizen. This is the ancestry of the Wallace party, and it does not work wholly in its favor. It operates to give pause to even the most desperate and the most gullible."

"My first introduction to economics came by way of Professor B.H. Hibbard. I remember being asked in 1910, at the close of my college course, who had influenced me most, and I said Professor Hibbard. Later, of course, we came to disagree violently about the McNary-Haugen Bill and some other things; but I still think that Professor Hibbard is a very good teacher."

"If we define an American fascist as one who in case of conflict puts money and power ahead of human beings, then there are undoubtedly several million fascists in the United States. There are probably several hundred thousand if we narrow the definition to include only those who in their search for money and power are ruthless and deceitful. Most American fascists are enthusiastically supporting the war effort."

"The dangerous American fascist is the man who wants to do in the United States in an American way what Hitler did in Germany in a Prussian way. The American fascist would prefer not to use violence. His method is to poison the channels of public information. With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public into giving the fascist and his group more money or more power."

"They claim to be super-patriots, but they would destroy every liberty guaranteed by the Constitution. They demand free enterprise, but are the spokesmen for monopoly and vested interest. Their final objective toward which all their deceit is directed is to capture political power so that, using the power of the state and the power of the market simultaneously, they may keep the common man in eternal subjection."

"If we define an American fascist as one who in case of conflict puts money and power ahead of human beings, then there are undoubtedly several million fascists in the United States. There are probably several hundred thousand if we narrow the definition to include only those who in their search for money and power are ruthless and deceitful. ... They are patriotic in time of war because it is to their interest to be so, but in time of peace they follow power and the dollar wherever they may lead."

"The nature of the American consensus was redefined from the 1940s, with important political, social and intellectual effects. Left-wing ideas were castigated as was cultural relativism. Instead, there was pressure for support of a conservative view of American culture. The failed attempt by Henry Wallace, a New Dealer who had been Vice-President in 1941–5, to challenge Truman by running for President in 1948 as a candidate of the new Progressive Party, reflected not only the divisive impact of taking a relatively pro-Soviet foreign policy line, but also the popular preference of, and for, Truman. He had dismissed Wallace as Secretary of Commerce in 1946 for opposing American foreign policy as overly anti-Soviet."

"American fascism will not be really dangerous until there is a purposeful coalition among the cartelists, the deliberate poisoners of public information... Fascism is a worldwide disease... greatest threat to the United States will come after the war... within the United States itself."

"With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public."

"What all this reminds us is that in order to defeat an enemy they routinely denounced as barbaric the Western powers had made common cause with an ally that was morally little better - but ultimately more effective at waging total war. 'The choice before human beings,' George Orwell observed in 1941, 'is not . . . between good and evil but between two evils. You can let the Nazis rule the world: that is evil; or you can overthrow them by war, which is also evil . . . Whichever you choose, you will not come out with clean hands.' Orwell's Animal Farm is nowadays revered as a critique of the Russian Revolution's descent into Stalinism; people forget that it was written during the Second World War and turned down by no fewer than four publishers (including T. S. Eliot, on behalf of Faber & Faber) for its anti-Soviet sentiments. Nothing better symbolized the blind eye that the Western powers now turned to Stalin's crimes than the American Vice-President Henry Wallace's visit to the Kolyma Gulag in May 1944. 'No other two countries are more alike than the Soviet Union and the United States,' he told his hosts. 'The vast expanses of your country, her virgin forests, wide rivers and large lakes, all kinds of climate - from tropical to polar - her inexhaustible wealth, [all] remind me of my homeland . . . Both the Russians and the Americans, in their different ways, are groping for a way of life that will enable the common man everywhere in the world to get the most good out of modern technology. There is nothing irreconcilable in our aims and purposes.' All were now totalitarians; in the words of Norman Mailer's general in The Naked and the Dead."

"Like everyone else I was misled by the size and the enthusiasm of the crowds that Wallace was attracting across the country. In Los Angeles ten thousand Chicanos came to hear Wallace speak in Lincoln Park under the banner of "Amigos de Wallace," and twenty-five hundred blacks came to hear him speak in Watts. We filled Gilmore Stadium, with its 32,000 seats, on three occasions. Charlie Chaplin endorsed him; Katharine Hepburn spoke at the first of those Gilmore Stadium meetings and made a very powerful speech supporting Wallace and attacking red-baiting. The Students for Wallace movement was very strong at UCLA, and we recruited many young people into the Party as a result. In Berkeley, Wallace was banned from speaking on campus but managed to attract eight thousand students to hear him speak from a sidewalk adjoining the campus. In the California primaries in June, about a half million people cast ballots for candidates who had filed or cross-filed as Progressives, one fifth of the total primary vote. It was a very energizing campaign, and no one in the Party thought that Wallace could possibly end up with less than five million votes nationwide."

"In 1948 the two-party duopoly smeared and suppressed the pro-labor efforts by the Progressive Party and its presidential candidate, former Vice President (under Franklin Delano Roosevelt) Henry Wallace. This was followed by more onerous restrictions on state ballot access and exclusions of third parties, enacted by both the Republicans and Democrats, that further stunted competitive choices of candidates and agendas."

"Instead, the main challenge to Truman’s decision to confront the Soviet Union came from the Left. And it was not much of a challenge. Roosevelt’s former secretary of agriculture, Henry Wallace—a Democratic Party grandee who regarded himself as a leader of the Left—decided to form a separate party for the presidential elections in 1948. “The bigger the peace vote in 1948,” Wallace said in declaring his candidacy, “the more definitely the world will know that the United States is not behind the bipartisan reactionary war policy which is dividing the world into two armed camps and making inevitable the day when American soldiers will be lying in their Arctic suits in the Russian snow.” Even though it was supported by some Democrats who felt that Truman was moving away from the legacies of the New Deal by breaking the wartime alliance with the USSR, Wallace’s campaign was undermined by his own haplessness as a candidate and the rather shrill US Communist Party support for his cause. To everyone’s surprise, Truman narrowly won the election against the Republican Thomas Dewey. Wallace’s Progressives scored 2.5 percent of the vote, less than Strom Thurmond’s Southern segregationists ticket."

"The American fascist would prefer not to use violence. His method is to poison the channels of public information.."

"This, by the way, is the welfare state in action: Its a whole bunch of special interest groups screwing consumers and taxpayers, and making them think they're really benefiting."

"Behind the honeyed but patently absurd pleas for equality is a ruthless drive for placing themselves (the elites) at the top of a new hierarchy of power."

"Money is different from all other commodities: other things being equal, more shoes, or more discoveries of oil or copper benefit society, since they help alleviate natural scarcity. But once a commodity is established as a money on the market, no more money at all is needed. Since the only use of money is for exchange and reckoning, more dollars or pounds or marks in circulation cannot confer a social benefit: they will simply dilute the exchange value of every existing dollar or pound or mark. So it is a great boon that gold or silver are scarce and are costly to increase in supply. But if government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this 'inflation' of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy."

"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance."

"Rights may be universal, but their enforcement must be local."