Economists From The United States

"Despite a flattering supposition to the contrary, people come readily to terms with power. There is little reason to think that the power of the great bankers, while they were assumed to have it, was much resented. But as the ghosts of numerous tyrants, from Julius Caesar to Benito Mussolini will testify, people are very hard on those who, having had power, lose it or are destroyed. Then anger at past arrogance is joined with contempt for the present weakness. The victim or his corpse is made to suffer all available indignities."

"The market had reasserted itself as an impersonal force beyond the power of any person to control, and, while this is the way markets are supposed to be, it was horrible."

"Our political life favors the extremes of speech; the man who is gifted in the arts of abuse is bound to be a notable, if not always a great figure."

"To the man who held stock on margin, disaster had only one face and that was falling prices. But now prices were to be allowed to fall. The speculator's only comfort, henceforth, was that his ruin would be accomplished in an orderly and becoming manner."

"The Coolidge Bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable."

"No one knew, but it cannot be stressed too frequently, that for effective incantation knowledge is neither necessary nor assumed."

"Of all the mysteries of the stock exchange there is none so impenetrable as why there should be a buyer for everyone who seeks to sell."

"In these matters, as often in our culture, it is far, far better to be wrong in a respectable way than to be right for the wrong reasons."

"However, it is safe to say that at the peak in 1929 the number of active speculators was less — and probably was much less — than a million."

"The values of a society totally preoccupied with making money are not altogether reassuring."

"It was not hard to persuade people that the market was sound; as always in such times they asked only that the disturbing voices of doubt be muted and that there be tolerably frequent expressions of confidence."

"To a few alarmed observers it seemed as though Wall Street were by way of devouring all the money of the entire world. However, in accordance with the cultural practice, as the summer passed, the sound and responsible spokesmen decried not the increase in brokers' loans, but those who insisted on attaching significance to this trend."

"In 1929 the discovery of the wonders of the geometric series struck Wall Street with a force comparable to the invention of the wheel."

"Of all the weapons in the Federal Reserve arsenal, words were the most unpredictable in their consequences."

"This view that the action of the Federal Reserve authorities in 1927 was responsible for the speculation and collapse which followed has never been seriously shaken. There are reasons why it is attractive. It is simple, and it exonerates both the American people and the economic system from substantial blame... Yet the explanation obviously assumes that people will always speculate if only they can get the money to finance it. Nothing could be farther from the case. There were times before and there has been long periods since when credit was plentiful and cheap—far cheaper than in 1927-29—and when speculation was negligible. Nor was speculation out of control after 1927, except that it was beyond the reach of men who did not want in the least to control it. The explanation is a tribute only to a recurrent preference, in economic matters, for formidable nonsense."

"In the autumn of 1929 the mightiest of Americans were, for a brief time, revealed as human beings."

"No one was responsible for the great Wall Street crash. No one engineered the speculation that preceded it. Both were the product of free choice and decision of hundreds of thousands of individuals."

"SOME YEARS, like some poets,and politicians and some lovely women, are singled out for fame far beyond the common lot, and 1929 was clearly such a year."

"I never enjoyed writing a book more; indeed, it is the only one I remember in no sense as a labor but as a joy."

"Writing is a long and lonesome business; back of the problems in thought and composition hover always the awful questions: Is this the page that shows the empty shell? Is it here and now that they find me out?"

"The drive toward complex technical achievement offers a clue to why the US is good at space gadgetry and bad at slum problems."

"The modern conservative is, in fact, not especially modern. He is engaged, on the contrary, in one of man's oldest, best financed, most applauded and, on the whole, least successful exercises in moral philosophy. That is the search for a truly superior moral justification for selfishness."

"Hitler also anticipated modern economic policy . . . by recognizing that a rapid approach to full employment was only possible if it was combined with wage and price controls. That a nation oppressed by economic fear would respond to Hitler as Americans did to F.D.R. is not surprising."

"Let's begin with capitalism, a word that has gone largely out of fashion. The approved reference now is to the market system. This shift minimizes — indeed, deletes — the role of wealth in the economic and social system. And it sheds the adverse connotation going back to Marx. Instead of the owners of capital or their attendants in control, we have the admirably impersonal role of market forces. It would be hard to think of a change in terminology more in the interest of those to whom money accords power. They have now a functional anonymity."

"When you see reference to a new paradigm you should always, under all circumstances, take cover. Because ever since the great tulipmania in 1637, speculation has always been covered by a new paradigm. There was never a paradigm so new and so wonderful as the one that covered John Law and the South Sea Bubble — until the day of disaster."

"Modesty is a vastly overrated virtue."

"It is my guiding confession that I believe the greatest error in economics is in seeing the economy as a stable, immutable structure."

"We now in the United States have more security guards for the rich than we have police services for the poor districts. If you're looking for personal security, far better to move to the suburbs than to pay taxes in New York."

"The contented and economically comfortable have a very discriminating view of government. Nobody is ever indignant about bailing out failed banks and failed savings and loans associations... But when taxes must be paid for the lower middle class and poor, the government assumes an aspect of wickedness."

"There's a certain part of the contented majority who love anybody who is worth a billion dollars."

"People who are in a fortunate position always attribute virtue to what makes them so happy."

"The great dialectic in our time is not, as anciently and by some still supposed, between capital and labor; it is between economic enterprise and the state."

"We can safely abandon the doctrine of the eighties, namely that the rich were not working because they had too little money, the poor because they had much."

"One must always have in mind one simple fact — there is no literate population in the world that is poor, and there is no illiterate population that is anything but poor."

"In the first place I identify this ["the equilibrium of poverty"] with primitive agriculture, and two factors have been at work there. One is, of course, population growth. If you were a poor farmer in India, Pakistan, or in much of Africa, you would want as many sons as possible as your social security. They would keep you out of the hot sun and give you some form of subsistence in your old age. So, you have pressure for population growth that is, itself, the result of the extreme economic insecurity. This is something which hasn't been sufficiently emphasized."

"There is something wonderful in seeing a wrong-headed majority assailed by truth."

"In all life one should comfort the afflicted, but verily, also, one should afflict the comfortable, and especially when they are comfortably, contentedly, even happily wrong."

"In any great organization it is far, far safer to be wrong with the majority than to be right alone."

"We need to recognise that the entire information sector—from music to newspapers to telecoms to internet to semiconductors and anything in-between—has become subject to a gigantic market failure in slow motion. A market failure exists when market prices cannot reach a self-sustaining equilibrium. The market failure of the entire information sector is one of the fundamental trends of our time, with far-reaching long-term effects, and it is happening right in front of our eyes."

"It will fluctuate."

"Anyone taken as an individual is tolerably sensible—as a member of a crowd, he at once becomes a blockhead."

"Behind the black portent of the new atomic age lies a hope which, seized upon with faith, can work out salvation … Let us not deceive ourselves: we must elect world peace or world destruction."

"If all you have is a hammer, everything looks like a nail."

"In the Baruch proposal our government suggested the creation of the International Authority by the United Nations to which would be given a complete monopoly of all atomic installations, materials and stockpiles. This authority should be given power of inspection and power to call for the punishment of violators."

"A speculator is a man who observes the future, and acts before it occurs."

"I'm not smart. I try to observe. Millions saw the apple fall but Newton was the one who asked why."

"A political leader must keep looking over his shoulder all the time to see if the boys are still there. If they aren’t still there, he’s no longer a political leader."

"Vote for the man who promises least; he'll be the least disappointing."

"Peace is never long preserved by weight of metal or by an armament race. Peace can be made tranquil and secure only by understanding and agreement fortified by sanctions. We must embrace international cooperation or international disintegration. Science has taught us how to put the atom to work. But to make it work for good instead of for evil lies in the domain dealing with the principles of human dignity. We are now facing a problem more of ethics than of physics."

"I am interested in physical medicine because my father was. I am interested in medical research because I believe in it. I am interested in arthritis because I have it."