Economists From The United States

"Excessive acreages of unused buildings, commercial and residential were created. The need for such construction, given the space demands of modern business bureaucracy, was believed to be without limit. In later consequence, the solvency of numerous banks, including that of some of the nation's largest and most prestigious institutions, was either fatally impaired or placed in doubt. The lending of both those that failed or were endangered and others was subject, by fear and example to curtailment. The construction industry was severely constrained and its workers left unemployed. A general recession ensued. Any early warning as to what was happening would have been exceptionally ill received, seen as yet another invasion of the benign rule of laissez faire and a specific interference with the market. However in keeping with the exceptions to this rule, there would be eventual salvation in a government bailout of the banks. Insurance of bank deposits — a far from slight contribution to contentment — was permissible, as well as assurance that were a bank large enough, it would not be allowed to fail. A preventive role by government was not allowed; eventual government rescue was highly acceptable."

"Both we and the Soviets face the common threat of nuclear destruction and there is no likelihood that either capitalism or communism will survive a nuclear war."

"The huge capacity to purchase submission that goes with any large sum of money, well, this we have. This is a power of which we should all be aware."

"Get the process of negotiation away from the small specialized group that some people have called the "nuclear theologians," who in effect said this is a complicated issue of seeing how little we can give away, how much we can extract from the other side; it's highly specialized. Only a few people can understand the nature of these weapons, the delivery systems, the targeting, the nature of the MIRV and the CRUISE, on down, and the MX. This kept the whole discussion to a very limited group of people who, in a way, had assumed responsibility for saying whether we should live or die."

"A nuclear war does not defend a country and it does not defend a system. I've put it the same way many times; not even the most accomplished ideologue will be able to tell the difference between the ashes of capitalism and the ashes of communism."

"All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership."

"When people put their ballots in the boxes, they are, by that act, inoculated against the feeling that the government is not theirs. They then accept, in some measure, that its errors are their errors, its aberrations their aberrations, that any revolt will be against them. It's a remarkably shrewd and rather conservative arrangement when one thinks of it."

"But there is merit even in the mentally retarded legislator. He asks the questions that everyone is afraid to ask for fear of seeming simple."

"Man, at least when educated, is a pessimist. He believes it safer not to reflect on his achievements; Jove is known to strike such people down."

"The Metropolis should have been aborted long before it becameNew York, London or Tokyo."

"The privileged have regularly invited their own destruction with their greed."

"The myth that holds that the great corporation is the puppet of the market, the powerless servant of the consumer, is, in fact one of the devices by which its power is perpetuated."

"He enlarged perceptibly the scope for debate, liberalized appreciably the intellectual and cultural life of the country and proclaimed the obvious truth that, after an atomic exchange, little would distinguish the Communist ashes from the capitalist ashes."

"Few can believe that suffering, especially by others, is in vain. Anything that is disagreeable must surely have beneficial economic effects."

"Who is king in the world of the blind when there isn't even a one eyed man?"

"Money is a singular thing. It ranks with love as man's greatest source of joy. And with death as his greatest source of anxiety. Over all history it has oppressed nearly all people in one of two ways: either it has been abundant and very unreliable, or reliable and very scarce."

"If inheritance qualifies one for office, intelligence cannot be a requirement."

"It was in World War I that the age-old certainties were lost. Until then aristocrats and capitalists felt secure in their position, and even socialists felt certain in their faith. It was never to be so again. The Age of Uncertainty began."

"Conscience is better served by a myth."

"All successful revolutions are the kicking in of a rotten door. The violence of revolutions is the violence of men who charge into a vacuum."

"I've long believed alas, that in highly organized industrial societies, capitalist or socialist, the stronger tendency is to converge — that if steel or automobiles are wanted and must be made on a large scale, the process will stamp its imprint on the society, whether that me be Magnitogorsk or Gary, Indiana."

"The man who is admired for the ingenuity of his larceny is almost always rediscovering some earlier form of fraud. The basic forms are all known, have all been practiced. The manners of capitalism improve. The morals may not."

"The masters thought they were loved until one day one of their favorites farted loudly while serving dinner and the next day was gone. The very first manifestation of the classless society is the disappearance of the servant class."

"American university presidents are a nervous breed; I have never thought well of them as a class."

"Of all classes the rich are the most noticed and the least studied."

"Economics is not an exact science."

"Because of his compassion Owen was always in trouble with his partners. They would have much preferred a tough, down-to-earth manager who would get a days work out of the little bastards."

"Economists are generally negligent of their heroes."

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason. But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right. The sensitivity of the poor to injustice is a trivial thing compared with that of the rich."

"It's a rule worth having in mind. Income almost always flows along the same axis as power but in the opposite direction."

"Ideas may be superior to vested interest. They are also very often the children of vested interest."

"Few things in life can be so appalling as the difference between a dry antiseptic statement of a principle by a well spoken man in a quiet office, and what happens to people when that principle is put into practice."

"Nothing is more portable than rich people and their money"

"Those who yearn for the end of capitalism should pray for government by men who believe that all positive action is inimical to what they call thoughtfully the fundamental principles of free enterprise."

"With the American failure came world failure."

"In dealing with Mr. Nixon, it is not easy to be unfair. He invites and justifies all available criticism."

"Foresight is an imperfect thing — all prevision in economics is imperfect."

"What was needed was a policy that increased the supply of money available for use and then ensured its use. Then the state of trade would have to improve."

"Economic life, as always, is a matrix in which result becomes cause and cause becomes result."

"There was something superficial in attributing anything so awful as the Great Depression to anything so insubstantial as speculation in common stocks."

"If all else fails immortality can always be assured by adequate error."

"In the fifteen years following the First World War, and especially in the immediate aftermath, the industrial nations exploited this new freedom in remarkably diverse fashion. The French followed the line of least resistance with, on the whole, the best results. The British followed the line of greatest wounds. The Germans so handled matters, or so yielded to circumstances, as to produce the greatest inflation of modern times. The United States, by a combination of mismanagement and non-management, produced the greatest depression. In all the long history of money, the decade of the 1920s—extended by a few years to the consequences—is perhaps the most instructive."

"The foresight of financial experts was, as so often, a poor guide to the future."

"No feature of American—to some extent of Anglo-Saxon—politics is so certain as the tendency of politicians to become first the captives, then the agents, of their opposition. ...In the 1960s, liberal Democrats... urged peace and international amity but continued the Cold War and plunged the country into Vietnam. ...partly because they feared being called appeasers and crypto-Communists by the right. Richard Nixon, having impeccable credentials as a Cold Warrior, moved towards peace or accommodation with Moscow and Peking and withdrew... from Vietnam. Thus on foreign policy he outflanked his liberal opposition. When Professor Milton Friedman proposed a guaranteed income for the poor, it was considered (quite correctly) an act of creative imagination. When a Republican administration proposed it to Congress, it was a mark of conservative statemanship. When George McGovern, running for President, advanced a close variant... it was condemned by conservatives as the dream of a fiscal maniac. As known and stalwart defenders of the dollar, the Republicans were able, in the early 1970s, to devalue it... twice. For anyone suspected of a more flexible attitude towards the integrity of the dollar, such action would have been exceedingly perilous."

"Power is as power does."

"During the last century and until 1907, the United States had panics, and that, unabashedly, is what they were called. But, by 1907, the language was becoming, like so much else, the servant of economic interest. To minimize the shock to confidence, businessmen and bankers had started to explain that any current economic setback was not really a panic, only a crisis. They were undeterred by the use of this term in a much more ominous context—that of the ultimate capitalist crisis—by Marx. By the 1920's, however, the word crisis had also acquired the fearsome connotation of the event it described. Accordingly, men offered reassurance by explaining that it was not a crisis, only a depression. A very soft word. Then the Great Depression associated the most frightful of economic misfortunes with that term, and economic semanticists now explained that no depression was in prospect, at most only a recession. In the 1950s, when there was a modest setback, economists and public officials were united in denying that it was a recession—only a sidewise movement or a rolling readjustment. Mr. Herbert Stein, the amiable man whose difficult honor it was to serve as the economic voice of Richard Nixon, would have referred to the as a growth correction."

"Seaboard Air Line, which was thought by numerous innocents to provide a foothold in aviation, was another favorite, although, in fact, it was a railroad."

"Truth has anciently been called the first casualty of war. Money may, in fact, have priority."

"In numerous years following the war the Federal government ran a heavy surplus. It could not pay off it's debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."

"[W]ith sound-money and gold-standard morality transcendent, Jackson's destruction of the Bank was all but universally regarded as a villainous action. ...In more recent times, as the conventional wisdom of bankers has come... modestly into question and a heightened democratic ethos has ascribed both perception and virtue to the common man, Jackson's action has been viewed with contrasting warmth. He was... speaking for the small, energetic and aspiring folks of the new states, the new farms and the frontier. He was, in an important respect, their accidental ally. He opposed the bank as a monopoly—a monster which, as Biddle held, had power to rival that of the state. ...[I]t was also the power of his political enemies. But he favored hard money—he was for currency consisting of gold and silver and for eschewing all paper as the instrument of the devil. In getting rid of the bank, he got... the softest [money] of all—an explosion of new banks, and avalanche of bank notes. But this, and the loans so allowed, were what his constituents most wanted. Had Andrew Jackson succeeded in establishing... hard money... his name would have been reviled by the... small, energetic and aspiring folk of the frontier. Historians, in pondering whether Jackson was right or wrong on financial matters, must allow... a third possibility... that he was confused."