The misconception that costs determined prices prevented economists for a long time from recognizing that it was prices which operated as the indispensable signals telling producers what costs it was worth expending on the production of the various commodities and services, and not the other way around. It was the costs which they had expended which determined the prices of things produced.It was this crucial insight which finally broke through and established itself about a hundred years ago through the so-called marginal revolution in economics.The chief insight gained by modern economists is that the market is essentially an ordering mechanism, growing up without anybody wholly understanding it, that enables us to utilize widely dispersed information about the significance of circumstances of which we are mostly ignorant. However, the various planners (and not only the planners in the socialist camp) and dirigists have still not yet grasped this.
Friedrich HayekRelated topics
anybody broke chief economics expending growing hundred ignorant marginal market mechanism misconception production revolution significance socialist telling understanding way worth yet circumstances years things costsRelated quotes
Five hundred years ago, when faced with an eclipse, many of us would have believed it was the work of an angry god. But as we've unearthed the language of the Code, we've discovered that the apparent mysteries of our world can be understood without invoking the supernatural. And this for me is what's so remarkable. That despite the incredible complexity of the world we live in, it can all, ultimately, be explained by numbers. Just like the orbit of the planets, life too follows a pattern. And it can all be reduced to cause and effect. In the end, even the flip of a coin is determined by how fast it's spinning and how long it takes to hit the ground. The ultimate symbol of chance isn't random at all. It only appears that way. When we don't understand the Code, the only way we can make sense of our world is to make up stories. But the truth is far more extraordinary. Everything has mathematics at its heart. When everything is stripped away all that remains is the Code.
Marcus du Sautoy
The global reach of Smith's moral and political reasoning is quite a distinctive feature of his thought, but it is strongly supplemented by his belief that all human beings are born with similar potential and, most importantly for policymaking, that the inequalities in the world reflect socially generated, rather than natural, disparities.
There is a vision here that has a remarkably current ring. The continuing global relevance of Smith's ideas is quite astonishing, and it is a tribute to the power of his mind that this global vision is so forcefully presented by someone who, a quarter of a millennium ago, lived most of his life in considerable seclusion in a tiny coastal Scottish town. Smith's analyses and explorations are of critical importance for any society in the world in which issues of morals, politics and economics receive attention. The Theory of Moral Sentiments is a global manifesto of profound significance to the interdependent world in which we live.
Amartya Sen
The eighteenth century called upon man to free himself of all the historical bonds in the state and in religion, in morals and in economics. Man's nature, originally good and common to all, should develop unhampered. In addition to more liberty, the nineteenth century demanded the functional specialization of man and his work; this specialization makes one individual incomparable to another, and each of them indispensable to the highest possible extent. However, this specialization makes each man the more directly dependent upon the supplementary activities of all others. Nietzsche sees the full development of the individual conditioned by the most ruthless struggle of individuals; socialism believes in the suppression of all competition for the same reason. Be that as it may, in all these positions the same basic motive is at work: the person resists to being leveled down and worn out by a social technological mechanism.
Georg Simmel
We read events by what goes before and after. We think of Bunker Hill as the first real battle for independence, the prelude to the Revolution. Yet these were both after thoughts. Independence Day was still more than a year away and then eight years from accomplishment. The Revolution cannot be said to have become established until the adoption of the Federal Constitution. No, on this June day, these were not the conscious objects sought. They were contending for the liberties of the country, they were not yet bent on establishing a new nation nor on recognizing that relationship between men which the modern world calls democracy. They were maintaining well their traditions, these sons of Londonderry, lovers of freedom and anxious for the fray, and these sons of the Puritans, whom Macaulay tells us humbly abased themselves in the dust before the Lord, but hesitated not to set foot upon the neck of their king.
Calvin Coolidge
Art' is a Renaissance invention which has been carried to a state of extreme refinement in the present day. This is the so-called 'abstract art'. The production of good works of art was achieved only at the cost of an enormous concentration upon certain matters. This concentration could be achieved only through neglecting 'life', through the very loss of life- just as religion had experienced before. 'Today this situation is no longer tolerable'. Today life is paramount. Modern life in general rejects all tendencies towards isolation and ivory tower-like exclusiveness. It is absolute un-modern to concentrate upon just one thing (as did the middle Ages!) Modern life is based upon the construction, which is to say, upon a system of tensions or the neutralization of the system of carry and support. In agreement with this concept we too must distribute our vitality over the whole range of life taken in the broadest possible sense. All other attitudes towards life produce tragedy.
Theo van Doesburg