Economics Quotes
There is some debate as to whether this statement was made at this time or different parts of it on two different occasions. The sentiment and position appears to be genuine but the issue of the timing is in doubt.
March 4, 1933 was the date that Franklin Delano Roosevelt had assumed the Presidency from Herbert Hoover and used government to combat the Great Depression whereas Hoover would not take any of these steps as the conservative wing of his party and he regarded anything that government did was “creeping socialism”. Historically, it is useful to recall what steps Roosevelt took that were described as socialism. These include Social Security, Federal Deposit Insurance for bank accounts, aid to farmers, the Civilian Conservation Corps, Regulation of the stock market, regulation of banks and many other things that are key elements of modern capitalism which virtually every capitalistic nations has in one form or another. Long after Truman was out of office, the most conservative elements of the Republican Party have accused every Democratic President of “creeping socialism” when they were actually quite opposed to socialism. Even when their career before their presidency was full of criticisms of socialism and policies that are opposite, as in the case of President Obama, the President has been accused of being a socialist. However, it started with Franklin Delano Roosevelt and Harry S Truman.
Three days before the Great Depression Stock Market crash
Napoleon recognized that technology and science were major factors in innovation and economic development and that mathematics was necessary for that and for economics, and therefore placed a great deal of emphasis on mathematics education. He was a fairly competent mathematically himself having been an artillery officer early in his career.
A startlingly bad prediction by a Nobel-prize winning economist particularly given it was stated in 1998 rather than a much earlier date when the potential of the Internet wasn’t already apparent. Ironically, the quote is from a Red Herring article he wrote titled “Why Most Economists’ Predictions Are Wrong” in which he asserts that most economists predictions are wrong because they overestimate the impact of future technologies. This quote is part of a longer, equally incorrect quote: “The growth of the Internet will slow drastically, as the flaw in ‘Metcalfe’s law' becomes apparent: most people have nothing to say to each other! By 2005, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” See related quotes.
Economics has never been a precise science which is one of the reasons it is called the “dismal science.” In the final analysis economics depends on the behavior of people—rational and irrational.
Although this quotation has been cited by many scholars, none has yet given a primary citation. As a result a few researchers question the attribution to Keynes and argue that the first primary source of this notion was the Nobel Laureate in Economics Paul Samuelson -- Quote {645739}. However, even Samuelson attributed this quotation to Keynes although he did not do so at this particualr interview.
Essentially Mellon told the President to let the entire economy crash. With huge numbers of people out of work, labor would be more humble and not only settle for lower wages, but will work harder, and without "excess" income beyond their basic needs, they would not drink and engage in other immoral activities. President Hoover, a wealthy man himself, did not go along with Mellon's idea of making the situation worse, but his conservative philosophy of government would not allow the Government to "interfere" with the private economy or give any direct assistance to the citizens.
This extreme position illustrates how a politician, trying to defend a particular position can get carried away and lose rational sense of balance. The air we breath is free and quite valuable—essential really. The exercise of most of our political rights is without charge. Legitimate religions do not require payment.
Greenspan went on to become the Chairman of the Federal Reserve Board for 20 years, one of the most successful in history.
