Economists From England

"We must give the system sufficient factors of stability to enable it to work; but we must not assume that these forces are so powerful as to prevent the system from being liable to fluctuations. There must be a tendency to rigidity of certain prices, particularly wage-rates; but there must also be a tendency to rigidity of certain price-expectations as well, in order to provide an explanation for the rigidity of these prices... Indeed we should do better to assume a good deal of variation in different people’s elasticities of expectations... Of course the way in which a population is divided with respect to this sort of sensitivity will vary very much in different circumstances... We have to be prepared to deal with a range of possible cases, varying from that of a settled community, which has been accustomed to steady conditions in the past (and which, for that reason, is not easily disturbed in the present), to that of a community which has been exposed to violent disturbances of prices (and which may have to be regarded, in consequence, as being economically neurotic."

"Anyway, I enrolled in Economics and one of the things I read was a brand new book, Hick's Value and Capital. You know, after reading though the mish-mash like Marshall and things like that, suddenly there was this clear, well-organized view, you knew exactly what was happening. Just the sort of thing to appeal to me. There was a whole, messy, confused literature on capital theory; all those great debates between Knight and von Hayek and all that. And now here was just the idea of dated commodities and suddenly scales fell from your eyes. A simple idea like dated commodities made whole issues transparent. But as I read Hicks, I could see there were things left out. I turned to this again when I returned from the War, which was really pretty much of a hiatus in any work I was doing - I was gone and very busy for about three and a half years. I had done all my examinations before I had left. So now it was just a question of my thesis. I decided to take Value and Capital and redo it properly. I could see all kinds of specific points that were of concern. I wanted to combine it with Samuelson's stability theory, which he had developed in the meanwhile, the papers on dynamic stability in '41 and '42. Maybe I would add some stochastic elements to the story because as a student of probability and statistics theory I could see noise in the system. Well, it was a lifetime of work, really; it was a very unrealistic thesis."

"There is much of economic theory which is pursued for no better reason than its intellectual attraction; it is a good game. We have no reason to be ashamed of that, since the same would hold for many branches of pure mathematics."

"The purpose of income calculations in practical affairs is to give people an indication of the amount which they can consume without impoverishing themselves. Following out this idea, it would seem that we ought to define a man's income as the maximum value which he can consume during a week, and still expect to be as well off at the end of the week as he was at the beginning."

"Meat is a wasteful use of water and creates a lot of greenhouse gases. It puts enormous pressure on the world’s resources. A vegetarian diet is better. … I think it’s important that people think about what they are doing and that includes what they are eating."

"If we do not cut emissions, we face even more devastating consequences, as unchecked they could raise global average temperature to 4C or more above pre-industrial levels by the end of the century. The shift to such a world could cause mass migrations of hundreds of millions of people away from the worst-affected areas. That would lead to conflict and war, not peace and prosperity. … We also underestimated the potential importance of strong feedbacks, such as the thawing of the permafrost to release methane, a powerful greenhouse gas, as well as tipping points beyond which some changes in the climate may become effectively irreversible."

"We should remember that the last time global temperature was 5C different from today, the Earth was gripped by an ice age. So the risks are immense and can only be sensibly managed by reducing greenhouse gas emissions, which will require a new low-carbon industrial revolution."

"I regard Mr. Hawtrey as my grandparent and Mr. Robertson as my parent in the paths of errancy, and I have been greatly influenced by them."

"Looking back the great American ‘stabilisation’ [and boom] of 1922-1929 was really a vast attempt to destabilise the value of money in terms of human effort by means of a colossal programme of investment [driven by too easy credit]... which succeeded for a surprisingly long period, but which no human ingenuity could have managed to direct indefinitely on sound and balanced lines. [and therefore it ended dramatically in the huge 1929 stock market crash followed by the Great Depression.]"

"The value of a yellow metal, originally chosen as money because it tickled the fancy of savages, is clearly a chancy and irrelevant thing on which to base the value of our money and the stability of our industrial system.""

"Islands of conscious power in this ocean of unconscious co-operation like lumps of butter coagulating in a pail of buttermilk."

"Professor Sir Dennis Robertson and Keynes were closely associated in the development of their ideas in monetary economics during the 1920s. Robertson had published his textbook Money in 1922 which went through a number of editions."

"Life-saving information tends to come in local dialects."

"Coexistence is not toleration; it is resonance; it is the nature of the human ecology."

"A culture is like the upright strands that you begin with in basket-making, round which you wind the texture of the basket itself: no sticks, no basket; no culture, no community. It is the grammar, the story, humour and good faith that identifies a community and gives it existence. It is both the parent and child of social capital. And the social capital of a community is its social life – the links of cooperation and friendship between its members. It is the common culture and ceremony, the good faith and reciprocal obligations the civility and citizenship, the play, humour and conversation which make a living community, the cooperation that builds its institutions. It is the social ecosystem in which a culture lives."

"Reliance on the market economy has led to the asset of a common culture falling into neglect; sometimes we pick through the ruins like tourists marvelling at a lost settlement and guessing at what was once there. It would be helpful—though late in the day—to stop dismantling what remains of a culture in today’s political economy, and to start to re-grow cultural and artistic links as an essential basis for cohesion in a future which, from where we sit, will be barely recognisable."

"Wisdom is intelligence drenched in culture."

"Crime is valuable feedback about what childhood in a society means, about its education, economics and culture—about whether this is a society that works or not."

"Without a sense of history, our expectations are the product of how we live now."

"As people surrender the power to build the institutions they want, which would enable lives that make sense to them, the system as a whole sacrifices the intelligence it needs: it loses its minds."

"Holism [is] the art — in contrast with reductionism — of seeing a complex system as a whole. Holism knows the limits to its understanding; it acknowledges that the system has its wildness, its privacy, its own reasons, its defences against invasive explanation ... It does not pretend to understand the whole school just on the evidence of dissecting the geography teacher."

"While democracy has advanced, the part we ordinary citizens have played in the making and sustaining of the places and communities we live in has diminished. Never has so much been decided for so many by so few."

"At present, culture is decorative rather than structural; although it may lift the spirits ... The Lean Economy, in contrast, will depend for its existence on a deep foundation in culture. It is possible to live without it, but only for a time, like holding your breath under water."

"There are two morals to the story. The first is: avoid giving false alarms. The second is: in the end, the wolf came, so do not be misled by previous false alarms into thinking that the latest alarm is false, too. Of these two morals, the second one is more significant. Believing false alarms wastes time, but can lead to some helpful advice for apprentice shepherds; disbelieving all alarms can lead to a local lad being eaten, for starters."

"It's not necessarily against a system that it collapses, because most systems do collapse in the end. That’s a part of the wheel of life - systems do collapse. So I’m to some extent slightly inclined to forgive capitalism for being about to collapse. I mean there are lots of fine things, lots of love affairs and the like which have come to a sticky end. On the other hand, it is quite an accusation - quite hard for it to live down - that it's going to destroy the entire planet with it."

"Localisation stands, at best, at the limits of practical possibility, but it has the decisive argument in its favour that there will be no alternative."

"Forward movement is not helpful if what is needed is a change of direction."

"Large-scale problems do not require large-scale solutions; they require small-scale solutions within a large-scale framework."

"'The harder I work, the luckier I get'. It was Thomas Jefferson who started the stream of variations on that theme. He should have added, 'The harder I work on one thing, the unluckier I get on all the other commitments I haven’t had time for'."

"If an argument is a good one, dissonant deeds do nothing to contradict it. In fact, the hypocrite may have something to be said for him; it would be worrying if his ideals were not better than the way he lives."

"At present, we have a policy-response shaped by sophisticated climate science, brilliant technology and pop behaviourism, based on simple assumptions about carrot-and-stick incentives."

"The difficult task will not be to move away from our market-based civil society: that will fall away so fast that we will find it hard to believe it was ever there. The task, on the contrary, is to recognise that the seeds of a community ethic—and, indeed, of benevolence—still exist. It is to join up the remnants of local culture that survive, and give it the chance to get its confidence back. We now need to move from a precious interest in culture as entertainment, often passive and solitary, to culture in its original, earthy senses of the story and celebration, the guardianship and dance that tell you where you are, and who is there with you..."

"Every civilisation has had its irrational but reassuring myth. Previous civilisations have used their culture to sing about it and tell stories about it. Ours has used its mathematics to prove it."

"The study of economic lift-off is well developed; touch-down has not been considered. There is an asymmetry here which would invite comment if applied to aviation."

"The reduction of a society and culture to dependence on mathematical abstraction has infantilised a grown-up civilisation and is well on the way to destroying it. Civilisations self-destruct anyway, but it is reasonable to ask whether they have done so before with such enthusiasm, in obedience to such an acutely absurd superstition, while claiming with such insistence that they were beyond being seduced by the irrational promises of religion."

"The only problem with capitalism is that it destroys the planet, and that it’s based on growth. I mean apart from those two little details it’s got a lot to be said in its favour."

"Do nothing that matters without consulting a conversation."

"The claim that industrial agriculture is the only way of feeding a large population is about as scientific as a belief in Creationism - and far more damaging."

"Unfortunately, the critics of economics have had a tendency to discuss the whole structure as a tissue of misconceptions. It is a critique that fails. The strength of economics is its considerable, if far from complete, understanding of the flows and comparative advantages that underlie trade, jobs, capital and incomes, and the logic of optimising behaviour, all backed by glittering accomplishment in mathematics. That makes it a powerful analytical instrument, so that just a few misconceptions – such as a failure to understand the informal economy or resource depletion – have leverage: like a baby monkey at the controls of a Ferrari, they can turn it into an instrument with extraordinarily destructive potential. If it were a tissue of errors, it would not be dangerous: it is its 90 percent brilliance which makes it so."

"Perhaps nothing illustrates better the diabolical character of the Stalinist regime than the 140-mile Belomor Canal, built at Stalin's instigation to link the Baltic Sea and the White Sea. Between September 1931 and August 1933, somewhere between 128,000 and 180,000 prisoners - most of them from Solovetsky, with Frenkel directing their efforts - hacked out a waterway, equipped only with the most primitive pick-axes, wheelbarrows and hatchets. So harsh were the conditions and so inadequate the tools that tens of thousands of them died in the process. This was hardly unforeseeable; for six months of the year the ground was frozen solid, while in many places the prisoners had to cut through solid granite. And, as so often, the net result was next to worthless economically: far too narrow and shallow to be navigable by substantial vessels. Yet when Shaw's fellow Fabians Sidney and Beatrice Webb were given a tour of the finished canal they were oblivious to all this. As they put it in their book Soviet Communism: A New Civilization? (1935), it was 'pleasant to think that the warmest appreciation was officially expressed of the success of the OGPU, not merely in performing a great engineering feat, but in achieving a triumph in human regeneration'."

"The constituency parties were frequently little unrepresentative groups of nonentities dominated by fanatics and cranks, and extremists, and that if the block vote of the Trade Unions were eliminated it would be impracticable to continue to vest the control of policy in Labour Party Conferences."

"The Webbs explicitly rejected the 'naive belief that. . . Soviet] penal settlements are now maintained and continuously supplied with thousands of deported manual workers and technicians, deliberately for the purpose of making, out of this forced labour, a net pecuniary profit to add to the State revenue.' Such notions were simply 'incredible' to 'anyone acquainted with the economic results of the chain-gang, or of prison labour, in any country in the world'. Slavery always has its apologists, but seldom are they so ingenuous. The thirty-six Soviet writers who, under Gorky's direction, produced the hyperbolic book The Belomor-Baltic Canal Named for Stalin at least had the excuse that the alternative to lying might be dying. The Webbs wrote their rubbish in the safety of Bloomsbury."

"Just as every human being has an ancestry, unknown to him though it may be; so every idea, every incident, every movement has in the past its own long chain of causes, without which it could not have been. Formerly we were glad to let the dead bury their dead: nowadays we turn lovingly to the records, whether of persons or things; and we busy ourselves willingly among origins, even without conscious utilitarian end. We are no longer proud of having ancestors, since every one has them; but we are more than ever interested in our ancestors, now that we find in them the fragments which compose our very selves."

"It need hardly be said that the social philosophy of the time did not remain unaffected by the political evolution and the industrial development. Slowly sinking into men's minds all this while was the conception of a new social nexus, and a new end of social life. It was discovered (or rediscovered) that a society is something more than an aggregate of so many individual units—that it possesses existence distinguishable from those of any of its components. A perfect city became recognized as something more than any number of good citizens—something to be tried by other tests, and weighed in other balances than the individual man. The community must necessarily aim, consciously or not, at its continuance as a community: its life transcends that of any of its members; and the interests of the individual unit must often clash with those of the whole."

"The capitalist is very fond of declaring that labour is a commodity, and the wage contract a bargain of purchase and sale like any other. But he instinctively expects his wage-earners to render him, not only obedience, but also personal deference. If the wage contract is a bargain of purchase and sale like any other, why is the workman expected to toff his hat to his employer, and to say ‘sir’ to him without reciprocity?"

"Chance and change are busy ever; Man decays, and ages move; But His mercy waneth never; God is wisdom, God is love."

"There are many pharisees in literature as well as in religion, wrapped up in the garments of self-idolatry, and making their very deficiencies the ground of their highest complacency. There are many blind wanderers through unbounded fields of instruction, who can discover nothing but nakedness—nothing but barrenness around them. Fertility itself offers no attractions to them—how much less can they understand the power of that benign principle which makes the waters gush forth, fresh, pure, and sparkling, from the very rocks of the desert."

"In the cross of Christ I glory, Towering o'er the wrecks of time; All the light of sacred story Gathers round its head sublime."

"When you introduce markets in food, then you introduce two very simple rules. The first rule is this: if you have money you can get the food from wherever around the world. The other rule markets impose is this: if you do not have money, you will starve. This is an important point … The reason why people starve is because of poverty … not because of a shortage of food … but because the only way to access the food is through the market."

"We are all familiar with the idea: Give a man a fish and you'll feed him for a day, but teach a man to fish and you'll feed him for a lifetime. That sounds reasonable enough. … But think of the model that rests on. It constructs people in developing countries that sort of people sitting by the rivers and eating fish and then they look at the river and said: "- So what's that? - It looks like a fish. - Well, how do we get it out? - Well I have no idea, we would have to wait for white man to come and tell us." It's important to remember that actually there are systems of governance that already exist. There are models of development that already exist in developing countries that actually are much more sustainable than the model of free markets that we have been trying to export."