Archive for the ‘Quotes’ Category
He thought the cause of the financial crisis was “simple. Greed on both sides—greed of investors and the greed of the bankers.” I thought it was more complicated. Greed on Wall Street was a given—almost an obligation. The problem was the system of incentives that channeled the greed.
Found in the December 2008 portfolio magazine (ht Robbie Allan).
Although I don’t agree with all Thomas Sowell has to say, this quote is brilliant:
The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics
I think this quote is apt following an election. All political parties prefer to ignore trade-offs – they just focus is ability in different policy areas 😛
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
Training to be an economist does not tell you the answer to any economic question – it gives you the tools with which to determine answers for yourself, given your own set of value judgments.
The long run is a misleading guide to current affairs. In the long run we are all dead
More commonly written as “in the long-run we are all dead” putting the quote in wider context makes it more reasonable. Fundamentally all this tells us is that the long run (when prices can all clear and agents have responded to a shock) differs intrinsically from the short run.