But institutional economics is the field of the public interest in private ownership, which shows itself behavioristically in buying and selling, borrowing and lending, hiring and firing, leasing and renting. The private interests become the field of intangible yet quantitative and measurable rights, duties, liberties and exposures to the liberties of others. These are various aspects of rights of ownership. What we buy and sell is not material things and services but ownership of materials and services. The correlation of engineering economics, home economics, and institutional economics makes up the whole of the science of political economics.
John R. CommonsRelated topics
borrowing buying buy correlation economics engineering field hiring home intangible interest measurable public renting science sell selling yet others thingsRelated quotes
The slaves of our times are not all those factory and workshop hands only who must sell themselves completely into the power of the factory and foundry-owners in order to exist, but nearly all the agricultural laborers are slaves, working, as they do, unceasingly to grow another's corn on another's field, and gathering it into another's barn; or tilling their own fields only in order to pay to bankers the interest on debts they cannot get rid of. And slaves also are all the innumerable footmen, cooks, porters, housemaids, coachmen, bathmen, waiters, etc., who all their life long perform duties most unnatural to a human being, and which they themselves dislike.
Leo Tolstoy
The challenge is going to come from Russia. The challenge is not going to come from the United States. The challenge is not going to come from West Germany nor from France. The challenge is going to come from those countries who, however wrong they may be – and I think they are wrong in many fundamental respects – nevertheless are at long last being able to reap the material fruits of economic planning and of public ownership. ... Our main case is and must remain that in a modern complex society it is impossible to get rational order by leaving things to private economic adventure. Therefore I am a Socialist. I believe in public ownership.
Aneurin Bevan
We have defined the main task of economic analysis as the explanation of the magnitudes of economic quantities. The student will find also that the main part of this, as of most other works on the subject, is concerned with the theory of the determination of prices, wages, interest rates, incomes, and the like. He may well inquire, therefore, in the midst of so much mathematics, whether the first task of economics is not the investigation of wealth, or welfare. Some economists have endeavored to restrict the boundaries of the science to the investigation of those quantities which are numerically measurable. Well-being, under such a restriction, would not be part of economics at all.
Kenneth Boulding
Figure 12-6 pulls together in a simplified way the main elements of income determination. Without saving and investment, there would be a circular flow of income between business and the public: above, business pays out wages, interest, rents, and profits to the public in return for the services of labor and property; and below, the public pays consumption dollars to business in return for goods and services.
Realistically, we must recognize that the public will wish to save some of its income, as shown at the spigot Z. Hence, businesses cannot expect their consumption sales to be as large as the total of wages, interest, rents, and profits.
Paul Samuelson
The Nobel Prize confers on an individual an authority which in economics no man ought to possess.
This does not matter in the natural sciences. Here the influence exercised by an individual is chiefly an influence on his fellow experts; and they will soon cut him down to size if he exceeds his competence.
But the influence of the economist that mainly matters is an influence over laymen: politicians, journalists, civil servants and the public generally.
There is no reason why a man who has made a distinctive contribution to economic science should be omnicompetent on all problems of society - as the press tends to treat him till in the end he may himself be persuaded to believe.
Friedrich Hayek