Jews From The United States

"I think the acceptance of "mathematical expectation of utility" or its "arithmetic mean" was an unthinking carryover from the mathematical theory of the law of large numbers as applied to asymptotic processes."

"Figure 12-6 pulls together in a simplified way the main elements of income determination. Without saving and investment, there would be a circular flow of income between business and the public: above, business pays out wages, interest, rents, and profits to the public in return for the services of labor and property; and below, the public pays consumption dollars to business in return for goods and services. Realistically, we must recognize that the public will wish to save some of its income, as shown at the spigot Z. Hence, businesses cannot expect their consumption sales to be as large as the total of wages, interest, rents, and profits."

"In the preface to the reissue of Risk, Uncertainty and Profit, Frank Knight makes the penetrating observation that under the conditions envisaged above the velocity of circulation would become infinite and so would the price level. This is perhaps an over-dramatic way of saying that nobody would hold money, and it would become a free good to go into the category of shell and other things which once served as money. We should expect too that it would not only pass out of circulation, but it would cease to be used as a conventional numeraire in terms of which prices are expressed. Interest bearing money would emerge. Of course, the above does not happen in real life, precisely because uncertainty, contingency needs, non-synchronization of revenues and outlay, transaction frictions, etc., etc., all are with us. But the abstract special case analyzed above should warn us against the facile assumption that the average levels of the structure of interest rates are determined solely or primarily by these differential factors. At times they are primary, and at other times, such as the twenties in this country, they may not be. As a generalization I should hazard the hypothesis that they are likely to be of great importance in an economy in which there is a “quasi-zero" rate of interest. I think by this hypothesis one can explain many of the anomalies of the United States money market in the thirties."

"The general method involved may be very simply stated. In cases where the equilibrium values of our variables can be regarded as the solutions of an extremum (maximum or minimum) problem, it is often possible regardless of the number of variables involved to determine unambiguously the qualitative behavior of our solution values in respect to changes of parameters."

"The existence of analogies between central features of various theories implies the existence of a general theory which underlies the particular theories and unifies them with respect to those central features. This fundamental principle of generalization by abstraction was enunicated by the eminent American mathematician E. H. Moore more than thirty years ago. It is the purpose of the pages that follow to work out its implication for theoretical and applied economics."

"I was lucky to enter economics in 1932. Analytical economics was poised for its take-off. I faced a lovely vacuum that young economists today can hardly imagine. So much remained to be done. Everything was still in an imperfect state. It was like fishing in a virgin lake: a whopper at every cast, but so many lovely new specimens that the palate never cloyed."

"Just as Hegel is said to have understood his philosophy for the first time when he read its French translation, Vilfredo Pareto could have learned what it was he meant exactly to say when he read Bergson's 1938 classic."

"Science is not art. Yet, despite the lack of complete identity between art and science, there is much in common among different creative processes."

"Herein lies the secret of the General Theory. It is a badly written book, poorly organized; any layman who, beguiled by the author's previous reputation, bought the book was cheated of his five shillings. It is not well suited for classroom use. It is arrogant, bad-tempered, polemical, and not overly generous in its acknowledgments. It abounds in mares' nests or confusions. In it the Keynesian system stands out indistinctly, as if the author were hardly aware of its existence or cognizant of its properties; and certainly he is at his worst when expounding its relations to its predecessors. Flashes of insight and intuition intersperse tedious algebra. An awkward definition suddenly gives way to an unforgettable cadenza. When finally mastered, its analysis is found to be obvious and at the same time new. In short, it is a work of genius."

"The General Theory caught most economists under the age of 35 with the unexpected virulence of a disease first attacking and decimating an isolated tribe of south sea islanders. Economists beyond 50 turned out to be quite immune to the ailment. With time, most economists in between began to run the fever, often without knowing or admitting their condition."

"I was guilty of judging capitalism by its operations and socialism by its hopes and aspirations; capitalism by its works and socialism by its literature."

"As Adolf Berle, a fellow cold warrior, once remarked, 'Being vindicated by history is cold comfort.' For one thing, the political scars of those with whom one has polemicized seem more long-lasting and painful than their memories of the political issues that gave rise to them. And yet indifference to the political life of one's times I deem a flagrant expression of moral irresponsibility. Those who profess such indifference owe the intellectual and cultural freedoms in which they luxuriate to the commitment and sacrifices of others."

"Although Bertrand Russell suffered unpopularity in some quarters for his role as a political dissenter, he enjoyed that role immensely. There was more than a touch of exhibitionism in the riskless sit-downs of his last years when he made well-publicized gestures to 'Ban the Bomb' that were as futile as they were ill-advised. I once wondered aloud to him whether his temperamental bias toward nonconformity and dissent was an expression not so much of intellectual courage as of the aristocrat's disdain of the commoner and his desire to épater le bourgeois. He replied with disarming frankness: 'Hook, I think you have something there...'"

"Herbert Marcuse made a lengthy, impassioned response. What good was the Voting Rights Act accomplishing, he said, since the blacks were pursuing the tawdry values as their white fellow citizens? They were accepting the same capitalist values and aping the life-restricting respectability of the middle class. At a prolonged pause in his reply, just as he was getting his second wind, I rose and asked him a simple question: 'Which do you prefer, a situation in which the blacks had no freedom to vote or one in which they had the freedom to vote but chose wrongly?' Marcuse's response surprised the audience--and subsequently perhaps Marcuse himself: 'Since I have gone so far out on a limb, I may as well go all the way. I would prefer that they did not have the freedom to vote if they are going to make the wrong use of their freedom.' For this and other reasons, I suspect, Marcuse never became the darling of the black American students."

"It is better to be a live jackal than a dead lion--for jackals, not men. Men who have the moral courage to fight intelligently for freedom have the best prospects of avoiding the fate of both live jackals and dead lions. Survival is not the be-all and end-all of a life worthy of man. Sometimes the worst we can know about a man is that he has survived. Those who say life is worth living at any price have already written for themselves an epitaph of infamy, for there is no cause and no person they will not betray to stay alive. Man's vocation should be the use of the arts of intelligence in behalf of human freedom."

"I turned to Brecht and asked him why, if he felt the way he did about Jerome and the other American Communists, he kept on collaborating with them, particularly in view of their apparent approval or indifference to what was happening in the Soviet Union.[...] Brecht shrugged his shoulders and kept on making invidious remarks about the American Communist Party and asserted that only the Soviet Union and its Communist Party mattered. [...] But I argued...it was the Kremlin and above all Stalin himself who were responsible for the arrest and imprisonment of the opposition and their dependents. It was at this point that he said in words I have never forgotten, 'As for them, the more innocent they are, the more they deserve to be shot.' I was so taken aback that I thought I had misheard him. 'What are you saying?' I asked. He calmly repeated himself, 'The more innocent they are, the more they deserve to be shot.' [...] I was stunned by his words. 'Why? Why?' I exclaimed. All he did was smile at me in a nervous sort of way. I waited, but he said nothing after I repeated my question. I got up, went into the next room, and fetched his hat and coat. When I returned, he was still sitting in his chair, holding a drink in his hand. When he saw me with his hat and coat, he looked surprised. He put his glass down, rose, and with a sickly smile took his hat and coat and left. Neither of us said a word. I never saw him again."

"The grim consequences of … Hanoi's victory are now incontestable. The record of the last decade has brought a realization to some, who had been of the same view as Chomsky, of what they helped to bring into being in Vietnam. Protests have been organized against the continued existence of concentration and re-education camps, and the systematic barbarities practiced against dissenters. But Chomsky is still unrepentant. He has refused to join any protest, on the ground that it would serve the interests of the United States. In short, he has followed the double standard to the last, for he never hesitated to utter the most extravagant criticism of the United States on the ground that it would serve the interests of the Soviet Union."

"The United States was taxed with following a policy whose logic was "genocide" for helping South Vietnam deal with "a peasant-based insurrection led by Communists" while the genuinely genocidal practices of North Vietnam in liquidating whole categories of the population were not mentioned. On his visit to Hanoi, Chomsky publicly held North Vietnam up to the world as a model of social justice and freedom. Whenever Chomsky and those who repeated some of his absurd views were challenged, they often cited as their authority someone else who had uttered similar absurdities, as if this vindicated the point they were making."

"Although there was much to criticize in American domestic and foreign policy, what struck me was the one-sidedness, unfairness, and systematic use of the double standard in the attacks against the United States and South Vietnam. … He called upon the United States "to denazify itself," but not North Vietnam or China. What practices in the United States, compared to the barbarous practices of Cuba or of China or of North Vietnam, warrant such a characterization? In those countries how long would one survive who whispered the kind of criticisms Chomsky was perfectly free to broadcast in the United States and be rewarded for it?"

"To silence criticism is to silence freedom."

"Anti-Semitism was rife in almost all varieties of socialism."

"During this period I attended two sessions of the Michigan summer school at which Schwinger (1948) and Feynman (1949) described their respective reformulations of QED. Schwinger’s was deeper and more complete while Feynman’s was easier to use but at that time incomplete. One may give a feeling for the impact of Schwinger by quoting Dyson who wrote home that ”in a few months we shall have forgotten what pre-Schwinger physics was like.” Bethe at that time described this period as the most exciting in physics since the great days of 1925-30 when quantum mechanics was being discovered."

"For two years in the late 1950s I was a postdoc at Harvard. Julian Schwinger was the leading light in theoretical physics at the time. We, the postdocs and junior faculty, audited whatever course he happened to be teaching. The material was always original. The lectures were on Wednesdays, and afterward the small group of us would have lunch with Schwinger at Chez Dreyfus in Cambridge. We would be joined by another small group from MIT that included Vikki Weisskopf. If Schwinger had any new ideas, he would try them out on Weisskopf. As it happened on this occasion, he had developed a “theory of everything.” Some of this theory survives in the work of other people. In 1962, he published a paper on “Gauge invariance and mass.”9 … In it he raised the question of whether one could have a massive vector meson in a theory that had an underlying gauge invariance. This possibility … inspired P. W. Anderson to use these ideas in condensed matter physics.10... 9 J. Schwinger, “Gauge invariance and mass,” Phys. Rev. 125, 397–398 1962 . 10 P. W. Anderson, “Plasmons, gauge invariance and mass,” Phys. Rev. 130, 439–442 1963."

"Is the purpose of theoretical physics to be no more than a cataloging of all the things that can happen when particles interact with each other and separate? Or is it to be an understanding at a deeper level in which there are things that are not directly observable (as the underlying quantized fields are) but in terms of which we shall have a more fundamental understanding?"

"Perhaps the most important contribution to science that the Royal Society has made in its three centuries of existence is its early role in publishing Newton's masterful account of his discoveries: Mathematical Principles of Natural Philosophy—the Principia."

"If my history lesson has done nothing else, it should have reminded you that, during any given period in the evolving history of physics, the prevailing, main line, climate of opinion was likely as not to be wrong, as seen in the light of later developments. And yet, in those earlier times, with relatively few individuals involved, change did occur, but slowly... What is fundamentally different in the present day situation in high energy physics is that large numbers of workers are involved, with corresponding pressures to conformity and resistance to any deflection in direction of the main stream, and that the time scale of one scientific generation is much too long for the rapid pace of experimental discovery. I also have a secret fear that new generations may not necessarily have the opportunity to become familiar with dissident ideas."

"Time appears in quantum mechanics as a continuous parameter which represents an abstraction of the dynamical role of the measurement apparatus. The requirement of invites the extension of this abstraction to include space and time coordinates. The implication that space-time localized measurements are a useful, if practically unrealizable idealization may be incorrect, but it is a grave error dismiss the concept on the basis of a priori notions of measurability."

"Many principles of economics were hidden in obscure verbiage of previous generations; he reformulated and extended them with crystal clarity in the language of mathematics."

"He was influential. He influenced students through his textbook, and he influenced the entire economics profession through his dissertation, published as "Foundations of Economic Analysis." Readers of this blog will tend to disapprove of his influence, in that it promoted Keynes and the use of mathematical modeling. Perhaps Milton Friedman was more influential on policy. But Samuelson was more influential on the internal dynamics of the economics profession. On that score, I would say that he was without peer in this century. […] Compared with later generations of economists, he was more nuanced in his thinking and not as capable a mathematician."

"John Maynard Keynes may have had more influence on policy makers, Milton Friedman on citizens, Kenneth Arrow on economic theory, but Samuelson had more influence on the way economics is done today, and the purposes to which it is put, than any other economist of the twentieth century."

"A few years ago, I had the good fortune of running across a first edition of Paul's textbook (not the recent reprint of the original text, but an actual 1948 edition). It was a real find. I bought the volume in an online auction for, if my recollection is correct, $35. Talk about consumer surplus! I would have gladly paid many times that. At the next Boston Fed meeting, I took the book along to get Paul to sign it. Below is the book's title page, along with Paul's gracious inscription."

"One recent history of economic thought (Jürg Niehans’s A History of Economic Theory) devotes twenty-four pages to Samuelson’s ideas. Adam Smith only gets thirteen. Samuelson’s work on stock markets and the random walk takes up less than two of those twenty-four pages. He was “the last generalist in economics,” as he liked to say, and for him financial market studies were just a side project that he at times seemed deeply ambivalent about. His intervention was, however, crucial to the triumph of the random walk. Here was one of the most important economists of all time, and he didn’t think the relationship between coin flips and the stock market was a dinner-speech triviality."

"There have been hedgehogs; there have been foxes; and then there was Paul Samuelson. (...) I’m referring, of course, to Isaiah Berlin’s famous distinction among thinkers – foxes who know many things, and hedgehogs who know one big thing. What distinguished Paul Samuelson as an economic thinker, making him like nobody else, past or present, was the fact that he knew – and taught us – many big things. No economist has ever had so many seminal ideas."

"Samuelson is an artist; he brought undergraduates pretty well up to the level of the state of knowledge in the profession."

"In contrast to the natural sciences, where Isaac Newton and Albert Einstein made their major contributions, most economics masterpieces were written when the authors were middle aged. Adam Smith, Karl Marx, John Maynard Keynes, and Milton Friedman come to mind. However, Paul started much earlier, in his 20s; and, even now, his new articles influence the fields of economics and finance."

"In the world of music, it is a rarity to find a person who is both a gifted composer and a top conductor. So it is in economics as well. Paul is that rarity. When Paul is writing, the sun is always out. His writing—ever eloquent, ever stirring—is done with the kind of verve that one seldom finds today."

"[Paul] mentioned that he had heard about a piece I had written on Irving Fisher. I have no idea how he heard about it, but I offered to send him a copy and within a few days I got back a letter. [Paul] read the paper and wanted to set down his own interpretation, but then he closes the letter with a remarkable line that I treasure: ‘Do disregard my heresies and follow your own star.’"

"New York City is a living organism; It evolves, it devolves, it fluctuates as a living organism. So my relationship with New York City is as vitriolic as the relationship with myself and with any other human being which means that it changes every millisecond, that it's in constant fluctuation."

"On State Street, that great street, I just want to say They do things they don't do on Broadway They have the time, the time of their life I saw a man, he danced with his wife In Chicago, Chicago my home town."

"Peg o' my heart I'll love you don't let us part. I love you I always knew it would be you Since I heard your lilting laughter It's your Irish heart I'm after Peg o' my heart."

"Amado mio When we're together I'm in a dream world Of sweet delight."

"You always break the kindest heart With a hasty word you can't recall, So if I broke your heart last night It's because I love you most of all."

"That's the story that went around, But here's the real low-down: Put the blame on Mame, boys, Put the blame on Mame."

"Young Ones. Darling we're the Young Ones. Young Ones shouldn't be afraid To live, love, there's a song to be sung, Cause we may not Be the Young Ones very long."

"I want some red roses for a blue lady. Mister Florist, take my order please. We had a silly quarrel the other day; I hope these pretty flowers chase her blues away."

"I hope you can feel the omniscience of this moment, as we have been blocking this traffic as far as you can see on the left. Sense the grandeur of your power as we disrupt one life after another."

"The Fulton Fish Market will be more of an odor than a landmark at this time of day, but it really swings out at four o'clock in the morning - another Timothy 'Speed' Levitch recommendation if you can't sleep and you like fish."

"If architecture is the history of all phallic emotion, the Empire State Building is utter catharsis, and we are sitting in its silhouette."

"The men who build and design this park are transcendentalists. To them, Central Park is a place to become one with nature, to focus on trees, to scintillate with grass, to stare into one anothers' eyes. No sweating allowed in the original Central Park, no perspiration of any kind. Anyone you see congregating for the baseball game on the left, bicycling, rollerblading, jogging, they are not historically accurate. Anyone you see lounging in the sun, having a picnic, or kissing; They are historically accurate."

"I think of every double-decker loop as another loop towards my death. And that is why I've always thought of the double-decker loop as - each loop as a continuous and individualized search for perfection."