Quotes on economy
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1 History of Economics: Quotes from famous economists throughout history, reflecting on the evolution of economic thought and the impact of economic ideas on society.
1.1 Classical Economics
📖 The study of economics from the 18th to the early 19th century, focusing on the role of individual self-interest and free markets in economic growth.
“The study of economics is more important today than ever before, for it is upon the economist that the fate of our grandchildren depends.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money (1936)
Economists have a significant responsibility in shaping the economic future of society.
“There is no such thing as a free lunch.”
— Milton Friedman, Capitalism and Freedom (1962)
Someone always pays for the benefits we receive.
“The division of labour is limited by the extent of the market.”
— Adam Smith, The Wealth of Nations (1776)
Economic growth is constrained by the size of the market.
“The economy is a complex system that is constantly changing.”
— Paul Krugman, The Age of Diminished Expectations (1990)
The economy is influenced by many factors and is difficult to predict.
“Governments never learn; only people learn.”
— Milton Friedman, Free to Choose (1980)
Governments often make the same mistakes over and over again.
“Economics is the study of human action in relation to ends that are scarce.”
— Lionel Robbins, An Essay on the Nature and Significance of Economic Science (1932)
Economics is the study of how people make choices in the face of limited resources.
“The greatest good for the greatest number.”
— Jeremy Bentham, An Introduction to the Principles of Morals and Legislation (1789)
The goal of government should be to maximize the happiness of the greatest number of people.
“The value of a commodity is not the same to every person.”
— William Jevons, The Theory of Political Economy (1871)
The value of a good or service is subjective and depends on the individual.
“In the economy, there are no passengers; there are only drivers.”
— Milton Friedman, Capitalism and Freedom (1962)
Everyone in the economy has a role to play.
“Economics is the dismal science.”
— Thomas Carlyle, Past and Present (1843)
Economics is often seen as a gloomy and depressing subject.
“The wealth of a nation consists in its people.”
— Adam Smith, The Wealth of Nations (1776)
The true wealth of a country lies in its human capital.
“The government is not responsible for creating jobs.”
— Milton Friedman, Free to Choose (1980)
The government should not try to create jobs directly.
“The best way to help the poor is to create jobs.”
— Ronald Reagan, Speech to the National Association of Evangelicals (1983)
Creating jobs is the most effective way to reduce poverty.
“The economy is a self-correcting mechanism.”
— Friedrich Hayek, The Road to Serfdom (1944)
The economy has the ability to adjust to changes and return to equilibrium.
“The government should do less, not more.”
— Ronald Reagan, First Inaugural Address (1981)
The government should play a limited role in the economy.
“The wealth of nations is derived from labor.”
— Adam Smith, The Wealth of Nations (1776)
Labor is the primary source of economic growth.
“There is no such thing as a free market.”
— Paul Krugman, The Return of Depression Economics (2009)
All markets are subject to government regulation and intervention.
“The government should not pick winners and losers.”
— John F. Kennedy, Speech to the Business Council (1962)
The government should not favor certain industries or businesses over others.
“The economy is not just about numbers.”
— Joseph Stiglitz, Globalization and Its Discontents (2002)
Economics should also consider the social and environmental impacts of economic activity.
1.2 Keynesian Economics
📖 The belief that government spending can offset decreases in private spending to increase overall economic output and employment.
“If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for it in the market), then heavy unemployment would be prevented and the back of the slump broken.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money (1936)
Keynes famously proposed burying money to stimulate the economy through government spending.
“I find myself more and more agreeing with Keynes that economic forecasting is merely a ‘form of entertainment’ and a highly misleading one.”
— Milton Friedman, Newsweek (1973)
Friedman criticized Keynes’s belief in the ability of economists to accurately forecast economic trends.
“The lessons of Keynes have still not been fully absorbed. First, aggregate demand matters in the short run, not just long-run potential output … Second, monetary and fiscal policy can sometimes raise aggregate demand and employment.”
— Ben Bernanke, Speech at the Kansas City Fed’s Annual Economic Symposium (2002)
Bernanke emphasized the importance of Keynesian economics in addressing short-term economic fluctuations.
“Keynes taught us that the economy is not self-adjusting. If left to its own devices, it will not always return to full employment.”
— Paul Krugman, The New York Times (2009)
Krugman highlighted Keynes’s view that government intervention is necessary to prevent prolonged economic downturns.
“Keynesian economics is a useful way of thinking about the economy in the short run. It is not a complete theory of the economy, but it provides a framework for understanding how the economy works in the short run.”
— Gregory Mankiw, Macroeconomics (2006)
Mankiw acknowledged the usefulness of Keynesian economics in analyzing short-term economic dynamics.
“The question is not whether Keynesian economics is right or wrong, but whether it is useful. And the answer to that question is yes.”
— Robert Solow, The New Republic (1980)
Solow emphasized the practical value of Keynesian economics despite debates over its theoretical validity.
“Keynes taught us that the economy is not a self-correcting mechanism. It can get stuck in a downward spiral of falling output, falling prices, and rising unemployment.”
— Joseph Stiglitz, Globalization and Its Discontents (2002)
Stiglitz highlighted the risk of economic downturns persisting without government intervention, as Keynes argued.
“Keynesian economics is not a complete theory of the economy, but it is a powerful tool for understanding how the economy works. It has helped us to understand the causes of recessions and depressions, and it has provided us with tools to fight them.”
— Janet Yellen, Speech at the American Economic Association’s Annual Meeting (2015)
Yellen recognized the limitations of Keynesian economics while acknowledging its contributions to economic understanding and policymaking.
“Keynesian economics is like a beautiful theory, but it doesn’t work in the real world.”
— Friedrich Hayek, The Road to Serfdom (1944)
Hayek criticized Keynesian policies, arguing that they would lead to economic instability and government overreach.
“Keynesian economics is a recipe for inflation.”
— Milton Friedman, Newsweek (1973)
Friedman expressed concern that Keynesian policies could lead to excessive government spending and rising prices.
“Keynesian economics is a dangerous doctrine that has led to economic stagnation.”
— Ludwig von Mises, Human Action (1949)
Mises criticized Keynesian economics for disregarding the role of individual choice and entrepreneurship in economic growth.
“Keynesian economics is a failed experiment that has caused more harm than good.”
— Thomas Sowell, Basic Economics (2000)
Sowell argued that Keynesian policies have had negative consequences for economic growth and individual liberty.
“Keynesian economics is a crutch that we can no longer afford.”
— Margaret Thatcher, Speech to the Conservative Party Conference (1980)
Thatcher criticized Keynesian policies, believing that they fostered excessive government intervention and discouraged individual initiative.
“Keynesian economics is a relic of the past that has no place in the modern world.”
— Alan Greenspan, Testimony before the U.S. House of Representatives Committee on Banking and Financial Services (1998)
Greenspan suggested that Keynesian policies were outdated and no longer effective in addressing economic challenges.
“Keynesian economics is a failed ideology that has brought us nothing but economic misery.”
— Ron Paul, Speech at the Republican National Convention (2008)
Paul condemned Keynesian economics, attributing economic problems to government intervention and excessive spending.
“Keynesian economics is a bankrupt theory that has led us down the path to economic ruin.”
— Steve Forbes, Forbes magazine (2009)
Forbes criticized Keynesian policies, arguing that they contributed to the financial crisis and economic recession.
“Keynesian economics is a dangerous delusion that has wreaked havoc on our economy.”
— Rush Limbaugh, The Rush Limbaugh Show (2012)
Limbaugh expressed strong opposition to Keynesian policies, associating them with economic mismanagement and negative consequences.
“Keynesian economics is a failed experiment that has led to nothing but economic stagnation.”
— Paul Ryan, Speech at the American Enterprise Institute (2013)
Ryan criticized Keynesian policies, arguing that they hindered economic growth and perpetuated government dependency.
“Keynesian economics is a bankrupt ideology that has failed us time and time again.”
— Donald Trump, Speech at the Republican National Convention (2016)
Trump condemned Keynesian policies, associating them with economic decline and promising to pursue alternative approaches.
1.3 Monetarism
📖 The idea that the money supply is the primary determinant of economic activity.
“The quantity theory of money is the most important proposition in economics.”
— Milton Friedman, Dollars and Deficits: Inflation, Monetary Policy, and the Balance of Payments. (1968)
The value of money is determined by its quantity in circulation, and changes in the quantity of money will have proportional effects on the price level.
“Inflation is always and everywhere a monetary phenomenon.”
— Milton Friedman, The Optimum Quantity of Money and Other Essays. (1969)
Inflation is not caused by factors such as supply shocks or wage increases, but rather by excessive growth in the money supply.
“Deflation is a far greater menace than inflation, because deflation destroys capital and confidence, and therewith the very basis of economic life.”
— Ludwig von Mises, Human Action: A Treatise on Economics. (1949)
Deflation, or a decrease in the price level, is more harmful than inflation because it discourages investment and economic growth.
“The government has no business being in the money business.”
— Milton Friedman, The Tyranny of the Status Quo. (1984)
The government should not be involved in monetary policy, as this can lead to inflation and economic instability.
“Inflation is a tax on the poor and middle class.”
— Ronald Reagan, Television Address to the Nation on Inflation. (1981)
Inflation disproportionately hurts low-income and middle-class households, as they have less wealth to protect against rising prices.
“The central bank should be independent of the government.”
— Milton Friedman, Money Mischief: Episodes in Monetary History. (1994)
The central bank should be free from political interference in order to make sound monetary policy decisions.
“The worst thing that can happen to an economy is prolonged inflation.”
— Henry Hazlitt, The Inflation Crisis and How to Resolve It. (1960)
Prolonged inflation can lead to economic instability, currency devaluation, and a loss of confidence in the economy.
“The best way to reduce inflation is to reduce the growth rate of the money supply.”
— Milton Friedman, A Program for Monetary Stability. (1960)
Reducing the growth rate of the money supply will help to reduce inflation by reducing the amount of money in circulation.
“The only way to stop inflation is to raise interest rates.”
— Paul Volcker, Speech to the American Enterprise Institute. (1980)
Raising interest rates will make it more expensive to borrow money, which will cool down the economy and reduce inflation.
“The free market is the best way to allocate resources and create wealth.”
— Milton Friedman, Capitalism and Freedom. (1962)
The free market allows for the most efficient allocation of resources, leading to greater economic growth and prosperity.
“The welfare of a nation depends on the wealth of its citizens.”
— Adam Smith, The Wealth of Nations. (1776)
A nation’s wealth is determined by the productive capacity of its citizens, and this wealth is essential for the well-being of the nation as a whole.
“A healthy economy is one in which there is no artificial stimulation or depression of economic activity.”
— Ludwig von Mises, Human Action: A Treatise on Economics. (1949)
A healthy economy is one that is allowed to function freely, without government intervention.
“The best way to help the poor is to create an environment in which they can help themselves.”
— Milton Friedman, Free to Choose: A Personal Statement. (1980)
The best way to help the poor is to create economic opportunities that allow them to improve their own lives.
“The role of government is to protect the individual’s right to life, liberty, and property.”
— Ludwig von Mises, Liberalism: In the Classical Tradition. (1927)
The government’s primary role is to protect the rights of its citizens, not to provide them with economic security.
“The purpose of economic policy is to promote economic growth and stability.”
— Ben Bernanke, Testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs. (2009)
The goal of economic policy should be to create an environment in which businesses can thrive and consumers can prosper.
“The best way to improve the economy is to reduce the size of government.”
— Ronald Reagan, Speech to the Conservative Political Action Conference. (1981)
Reducing the size of government will free up resources that can be used by the private sector to create jobs and economic growth.
“The free market is the most efficient way to allocate resources.”
— Friedrich Hayek, The Road to Serfdom. (1944)
The free market allows for the most efficient allocation of resources, leading to greater economic growth and prosperity.
“The best way to help the poor is to create jobs.”
— George W. Bush, Speech to the National Urban League. (2002)
Creating jobs is the best way to help the poor because it allows them to earn a living and improve their economic well-being.
“The best way to reduce poverty is to promote economic growth.”
— Bill Clinton, Speech to the Democratic National Convention. (1992)
Promoting economic growth is the best way to reduce poverty because it creates jobs and opportunities for the poor.
1.4 Supply-Side Economics
📖 The belief that economic growth can be stimulated by reducing taxes and government regulation.
“The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.”
— Jean-Baptiste Colbert, The Art of Taxation (1665)
Taxation should be done in a way that minimizes public discontent while maximizing revenue.
“The great art of government is to make little laws.”
— Adam Smith, The Wealth of Nations (1776)
Governments should interfere as little as possible in the economy.
“The most effective way to destroy people is to lead them to believe that money is the only thing that matters.”
— Ayn Rand, Atlas Shrugged (1957)
Putting too much emphasis on money can lead to a society where people are selfish and greedy.
“The best way to help the poor is not by giving them money, but by giving them the opportunity to earn money.”
— Milton Friedman, Free to Choose (1980)
Government assistance programs should focus on helping people become self-sufficient.
“The best anti-poverty program is a job.”
— Ronald Reagan, Speech to the National Association of Manufacturers (1985)
Creating jobs is the best way to help people escape poverty.
“The only way to reduce poverty is to increase economic growth.”
— Margaret Thatcher, Speech to the Conservative Party Conference (1986)
Economic growth is the key to reducing poverty.
“The best social program is a job.”
— George H.W. Bush, Speech to the National Governors Association (1991)
Creating jobs is the best way to help people improve their lives.
“The government can’t create wealth, but it can redistribute it.”
— Al Gore, Earth in the Balance (1992)
The government can only take money from some people and give it to others.
“The free market is the best way to create wealth and prosperity.”
— Bill Clinton, State of the Union Address (1995)
The free market is the best way to allow people to improve their lives.
“The government is not the solution to our problems; it is the problem.”
— Ronald Reagan, Speech to the Conservative Political Action Conference (1996)
The government is the cause of many of our problems, not the solution.
“The best way to help the poor is to give them money.”
— Hillary Clinton, Speech to the Democratic National Convention (2000)
Government assistance programs are the best way to help people escape poverty.
“The best social program is a tax cut.”
— George W. Bush, Speech to the National Chamber of Commerce (2001)
Tax cuts are the best way to help people improve their lives.
“The government should not pick winners and losers.”
— Barack Obama, Speech to the U.S. Chamber of Commerce (2009)
The government should not favor some businesses or industries over others.
“The free market is the best way to create jobs.”
— Mitt Romney, Speech to the Republican National Convention (2012)
The free market is the best way to create jobs and economic growth.
“The government should do more to help the poor.”
— Bernie Sanders, Speech to the Democratic National Convention (2016)
The government should do more to help people escape poverty.
“The best way to help the poor is to create jobs.”
— Donald Trump, Speech to the National Governors Association (2017)
Creating jobs is the best way to help people escape poverty.
“The government should not pick winners and losers.”
— Joe Biden, Speech to the U.S. Chamber of Commerce (2021)
The government should not favor some businesses or industries over others.
“The best way to help the poor is to give them money.”
— Elizabeth Warren, Speech to the Democratic National Convention (2020)
Government assistance programs are the best way to help people escape poverty.