Stanford University Faculty

"Our understanding of how markets and businesses operate was passed down to us more than a century ago by a handful of European economists — Alfred Marshall in England and a few of his contemporaries on the continent. It is an understanding based squarely upon the assumption of diminishing returns: products or companies that get ahead in a market eventually run into limitations, so that a predictable equilibrium of prices and market shares is reached. The theory was roughly valid for the bulk-processing, smokestack economy of Marshall’s day. And it still thrives in today’s economics textbooks. But steadily and continuously in this century, Western economies have undergone a transformation from bulk - material manufacturing to design and use of technology — from processing of resources to processing of information, from application of raw energy to application of ideas. As this shift has occurred, the underlying mechanisms that determine economic behavior have shifted from ones of diminishing to ones of increasing returns."

"Right after we published our first findings, we started getting letters from all over the country saying, "You know, all you guys have done is rediscover Austrian economics"… I admit I wasn't familiar with Hayek and von Mises at the time. But now that I've read them, I can see that this is essentially true."

"Psychoanalysis is unlikely to be repealed; people are not going to go back to reading novels in order to understand themselves and their lives."

"It becomes clear that the Asch, Milgram and Zimbardo experiments replicated, in a compressed time, the dynamics of authority and groupthink that play a critical role in our socialization. Asch showed that once the standard is set, people will adopt it and go along with it, even if it is illogical. When the stakes are raised, as they were in Milgram's work, people may struggle with unethical commands, but the majority still obey. And when authorities set parameters but leave the decision-making to the rest of us, we still have a tendency to impose strict control on those we consider deviant. All of these findings affirm the power of culture, socialization, and our widespread fear that we will be judged and punished. Since human beings have a desperate need for safety, approval, and belonging (which yields access to group resources), the worst kind of punishment is ostracism. This shunning may be subtle or extreme."

"It is not just rank-and-file psychologists who are protesting. Former APA president Philip Zimbardo is an international expert on interrogation and torture, and the author of The Lucifer Effect: Understanding How Good People Turn Evil. We asked for his response to the oft-repeated argument that psychologists can protect prisoners from abuse. "I think that's a lie," he told us. "Nobody is paying psychologists to go to the prison to make life easier for the prisoners. Psychologists in operation in Guantánamo Bay, in Abu Ghraib, in Afghanistan have almost no power to make any meaningful change. They are hired guns. You do what the boss wants, or you don't get back. So to say that psychologists are needed to maintain the dignity of prisoners, their health and so forth-that has no basis in reality.""

"You can create in the prisoners feelings of boredom, a sense of fear to some degree, you can create a notion of arbitrariness that their life is totally controlled by us, by the system, you, me, and they'll have no privacy... We're going to take away their individuality in various ways. In general what all this leads to is a sense of powerlessness. That is, in this situation we'll have all the power and they'll have none."

"The “Lucifer Effect” describes the point in time when an ordinary, normal person first crosses the boundary between good and evil to engage in an evil action. It represents a transformation of human character that is significant in its consequences. Such transformations are more likely to occur in novel settings, in “total situations,” where social situational forces are sufficiently powerful to overwhelm, or set aside temporally, personal attributes of morality, compassion, or sense of justice and fair play."

"The idea of the banality of heroism debunks the myth of the “heroic elect,” a myth that reinforces two basic human tendencies. The first is to ascribe very rare personal characteristics to people who do something special — to see them as superhuman, practically beyond comparison to the rest of us. The second is the trap of inaction — sometimes known as the "bystander effect." Research has shown that the bystander effect is often motivated by diffusion of responsibility, when different people witnessing an emergency all assume someone else will help. Like the “good guards,” we fall into the trap of inaction when we assume it’s someone else’s responsibility to act the hero."

"I summarize more than 30 years of research on factors that can create a "perfect storm" which leads good people to engage in evil actions. This transformation of human character is what I call the "Lucifer Effect," named after God's favorite angel, Lucifer, who fell from grace and ultimately became Satan. Rather than providing a religious analysis, however, I offer a psychological account of how ordinary people sometimes turn evil and commit unspeakable acts."

"Whether we consider Nazi Germany or Abu Ghraib prison, there were many people who observed what was happening and said nothing. At Abu Ghraib, one photo shows two soldiers smiling before a pyramid of naked prisoners while a dozen other soldiers stand around watching passively. If you observe such abuses and don’t say, “This is wrong! Stop it!” you give tacit approval to continue. You are part of the silent majority that makes evil deeds more acceptable."

"The principal impact of foreign enterprise on the development of the underdeveloped countries lies in hardening and strengthening the sway of merchant capitalism, in slowing down and indeed preventing its transformation into industrial capitalism."

"To contribute to the emergence of a society in which development will supplant stagnation, in which growth will take the place of decay, and in which culture will put an end to barbarism is the noblest, and, indeed, the only true function of intellectual endeavor."

"In fact, all the additional knowledge gained by an irrationally constituted society may but enlarge and enhance the powers of death and destruction."

"As Hegel well knew, the ascent of reason has never followed a straight line."

"It is in underdeveloped world that he central, overriding fact of our epoch becomes manifest to the naked eye: the capitalist system, once a mighty engine of economic development, has turned into a no less formidable hurdle to human advancement."

"The present Indian government, however, is neither able or willing to accept the challenge and to provide the leadership in breaking the resistance of urban and rural interests."

"For it is no railways, roads, and power stations that give rise to industrial capitalism: it is the emergence of industrial capitalism that leads to the building of railways, to the construction of roads, and to the establishment of power stations."

"Whatever market for manufactured goods emerged in colonial and dependent countries did not become the "eternal market" of these countries. Thrown wide open by colonization and by unequal treaties, it became an appendage of the "internal market" of Western capitalism."

"They lived in abysmal misery, yet they had no prospect of a better tomorrow. They existed under capitalism, yet there was no accumulation of capital."

"That the means of imperialist policy overshadow almost entirely its original ends has tremendous implications."

"In a capitalist country foreign trade, like any other trade, is carried on by individual firms, and individual firms cannot be guided in their activities by "global"considerations, by concern with the impact of their operations on the economy as a whole."

"Indeed, the "whole bourgeoisie" on whose behalf the government was acting as its "committee" was a composite of a vast multitude of businessmen appearing as a conglomeration of many different and divergent groups and interests."

"It has been estimated that even in the absence of net investment, the mere substitution of modern machinery for worn-out equipment in the United States would cause an annual productivity increase of approximately 1.5 percent."

"many seemingly independent businessmen or craftsman are more or less well paid retainers of larger corporations, such as the cobbler, operating a United States shoe machine or an automobile dealer holding a license of the General Motors Corporation."

"Schumpter's daring and dashing entrepreneur is now a legendary figure from the distant past - if not from the mythology of capitalism - or is to be found only in the demimonde of business, founding new ice cream parlors or "deep freeze subscription clubs"."

"Indeed, I find it illuminating to consider to what extent our "classical conditions" for economic growth are satisfied in the current, monopolistic phase of capitalism."

"By elevating the dictum of the market to the role of the sole criterion of rationality and efficiency, economics denies even all "respectability" to the distinction between essential and non-essential consumption, between productive and unproductive labor, between actual and potential surplus."

"If society has a technical need, that helps science forward more than ten universities."

"Much if not all we know about the complex mechanism responsible for the development (and stagnation) of productive forces, and for the rise and decay of social organizations, is the result of the analytical work undertaken by Marx and by those whom he inspired."

"But when reason and the study of history began revealing the irrationality, the limitations, and the merely transitory nature of the capitalist order, bourgeois ideology as a whole and with it bourgeois economics began abandoning both reason and history."

"One would think that the record of already existing regulatory agencies is sufficiently eloquent in showing that it is Big Business that does the regulating rather than vice versa."

"The process of writing is a process of learning; and much has become clearer to me in the attempt to transform my original rough notes into what I hope is an intelligible presentation."

"The desire to tell the truth is only one condition for being an intellectual. The other is courage, readiness to carry on rational inquiry to wherever it may lead … to withstand … comfortable and lucrative conformity."

"But just like voices, thoughts are underpinned by physical stuff. We know this because alterations to the brain change the kinds of thoughts we can think. In a state of deep sleep, there are no thoughts. When the brain transitions into dream sleep, there are unbidden, bizarre thoughts. During the day we enjoy our normal, well-accepted thoughts, which people enthusiastically modulate by spiking the chemical cocktails of the brain with alcohol, narcotics, cigarettes, coffee, or physical exercise. The state of the physical material determines the state of the thoughts. And the physical material is absolutely necessary for normal thinking to tick along. If you were to injure your pinkie in an accident you’d be distressed, but your conscious experience would be no different. By contrast, if you were to damage an equivalently sized piece of brain tissue, this might change your capacity to understand music, name animals, see colors, judge risk, make decisions, read signals from your body, or understand the concept of a mirror—thereby unmasking the strange, veiled workings of the machinery beneath. Our hopes, dreams, aspirations, fears, comic instincts, great ideas, fetishes, senses of humor, and desires all emerge from this strange organ—and when the brain changes, so do we. So although it’s easy to intuit that thoughts don’t have a physical basis, that they are something like feathers on the wind, they in fact depend directly on the integrity of the enigmatic, three-pound mission control center."

"It turns out your conscious mind — the part you think of as you — is really the smallest part of what’s happening in your brain, and usually the last one in line to find out any information."

"It is problematic to imagine yourself in the shoes of a criminal and conclude, “Well, I wouldn’t have done that”—because if you weren’t exposed to in utero cocaine, lead poisoning, or physical abuse, and he was, then you don’t fit in his shoes. Even if you would like to imagine what it’s like to be him, you won’t be very good at it."

"Our ignorance of the cosmos is too vast to commit to atheism, and yet we know too much to commit to a particular religion. A third position, agnosticism, is often an uninteresting stance in which a person simply questions whether his traditional religious story (say, a man with a beard on a cloud) is true or not true. But with Possibilianism I’m hoping to define a new position — one that emphasizes the exploration of new, unconsidered possibilities. Possibilianism is comfortable holding multiple ideas in mind; it is not interested in committing to any particular story."

"Many great civilisations have fallen, leaving nothing but cracked ruins and scattered genetics. Usually this results from: natural disasters, resource depletion, economic meltdown, disease, poor information flow and corruption. But we’re luckier than our predecessors because we command a technology that no one else possessed: a rapid communication network that finds its highest expression in the internet. I propose that there are six ways in which the net has vastly reduced the threat of societal collapse."

"Instead of reality being passively recorded by the brain, it is actively constructed by it."

"The brain is a complex system, but that doesn’t mean it’s incomprehensible. Our neural circuits were carved by natural selection to solve problems that our ancestors faced during our species’ evolutionary history. Your brain has been molded by evolutionary pressures just as your spleen and eyes have been. And so has your consciousness. Consciousness developed because it was advantageous, but advantageous only in limited amounts."

"Censorship of ideas was a familiar spectre in the last century, with state-approved news outlets ruling the press, airwaves and copying machines in the USSR, Romania, Cuba, China, Iraq and elsewhere. In many cases, such as Lysenko’s agricultural despotism in the USSR, it directly contributed to the collapse of the nation. Historically, a more successful strategy has been to confront free speech with free speech — and the internet allows this in a natural way. It democratises the flow of information by offering access to the newspapers of the world, the photographers of every nation, the bloggers of every political stripe. Some posts are full of doctoring and dishonesty whereas others strive for independence and impartiality — but all are available to us to sift through. Given the attempts by some governments to build firewalls, it’s clear that this benefit of the net requires constant vigilance."

"It is common talk that every individual is entitled to economic security. The only animals and birds I know that have economic security are those that have been domesticated--and the economic security they have is controlled by the barbed-wire fence, the butcher's knife and the desire of others. They are milked, skinned, egged or eaten up by their protectors."

"If you know a better place to live right now than this country, get a ticket and try to get there."

"We must get rid of the silly, sloppy idea that all people are equal in capacity."

"The world is full of intelligent, well-meaning people who, for one reason or another, did not attend university but are nonetheless well-read and educated. Out there on the prairie lost opportunities of youth were the rule rather than the exception, and I slowly became disabused of the myth of the Bright Young Thing and have not believed in it since."

"Oklahoma is laid back and rather beautiful, with rolling brown hills not unlike the ones in California. The Pershing missiles, on the other hand, were not beautiful. They were horrible weapons of war — solid-fuel rockets five feet in diameter at the base, long as a moving van, and capable of throwing a tactical nuclear warhead 500 miles. They were launched from trucks and required a team of 10 men to service and fire. The most interesting thing I learned during this time was how small a nuclear warhead was. The nose cone of a Pershing is only about 18 inches in diameter at the base. I had not been interested at all in nuclear weaponry as a student, and so I had never thought through carefully about their "efficiency". It is sobering thought that these missiles were actually deployed in continental Europe in those days and that on at least one occasion, namely the 1973 Arab-Israel war, there was an alert serious enough to leave the commanding officers trembling."

"I realized that nature is filled with a limitless number of wonderful things which have causes and reasons like anything else but nonetheless cannot be forseen but must be discovered, for their subtlety and complexity transcends the present state of science. The questions worth asking, in other words, come not from other people but from nature, and are for the most part delicate things easily drowned out by the noise of everyday life."

"Real understanding of a thing comes from taking it apart oneself, not reading about it in a book or hearing about it in a classroom. To this day I always insist on working out a problem from the beginning without reading up on it first, a habit that sometimes gets me into trouble but just as often helps me see things my predecessors have missed."

"The reason we believe in relativity today is not because we had a great transition in our beliefs about what should be so. We believe in relativity because we have no choice. It's true — measured to be true."

"I like to talk about renormalization as an epistemological barrier. … Nature has been kind, and nature has been unkind. … for what it's worth, I don't tell people what kind of research to do. I have been wrong many, many times in anticipating what will happen. … I’ve learned the hard way that the art of good physics is to ask a question that’s just barely beyond where the technology can go, and then you place your bets. And if you’re right you win the bet, and if you’re wrong you lose."