Economic theory, in every branch, deals with practical affairs. Its subject is human welfare, and it is never entirely dissociated from the practical question of how human welfare is to be promoted. But it is a special characteristic of the art of central banking that it deals specifically with the task of an authority directly entrusted with the promotion of human welfare. Human welfare, human motives, human behaviour supply material so baffling and elusive that many people are sceptical of the possibility of building a scientific edifice on so shifting a foundation. But however complex the material, and however imperfect the data, there is always an advantage to be gained from systematic thought.
Ralph George HawtreyRelated topics
advantage art authority baffling banking branch building central characteristic complex datum edifice human imperfect possibility question task thought promotion affairsRelated quotes
The prospect of a Russian conquest of Western Europe is one for which history affords no material. The theory that the Russians have not advanced from the Elbe to the Atlantic because of the nuclear deterrent is not more convincing than the theory that they have not done so because they do not want to do so and have never envisaged, unless perhaps in terms of world revolution, a Russian hegemony in Western Europe... Of all the nations of Europe, Britain and Russia are the only ones, though for opposite reasons, which have this thing in common: that they can be defeated in the decisive land battle and still survive. This characteristic, which Russia owes to her immensity, Britain owes to her moat.
Enoch Powell
These Thoughts, my dear Friend, are many of them crude and hasty, and if I were merely ambitious of acquiring some Reputation in Philosophy, I ought to keep them by me, 'till corrected and improved by Time and farther Experience. But since even short Hints, and imperfect Experiments in any new Branch of Science, being communicated, have oftentimes a good Effect, in exciting the attention of the Ingenious to the Subject, and so becoming the Occasion of more exact disquisitions (as I before observed) and more compleat Discoveries, you are at Liberty to communicate this Paper to whom you please; it being of more Importance that Knowledge should increase, than that your Friend should be thought an accurate Philosopher.
Benjamin Franklin
Allow me briefly to allude to some of these improvements. The question of building up class interests, or fostering one branch of industry to the prejudice of another under the exercise of the revenue power, which gave us so much trouble under the old constitution, is put at rest forever under the new. We allow the imposition of no duty with a view of giving advantage to one class of persons, in any trade or business, over those of another. All, under our system, stand upon the same broad principles of perfect equality. Honest labor and enterprise are left free and unrestricted in whatever pursuit they may be engaged. This old thorn of the tariff, which was the cause of so much irritation in the old body politic, is removed forever from the new.
Alexander H. Stephens
Writers after Coase have referred to the authority structure of the firm as a "visible hand" that works in combination with Smith's invisible hand. The everyday fact that employers exercise power over their employees - not news to most employees - had been a central theme in Marx's economics, but it was (and generally continues to be) overlooked by most neoclassical economists. Early in his studies Coase noted the similarity between the hierarchical organization of capitalist firms, with their reliance on command relations, and the then-existing system of centralized economic planning in the Communist countries, where production was carried out in accordance with orders from higher authorities and where market competition played little role.
Samuel Bowles
In my view-and that of most contemporary economists, I believe-Schumpeter's most original and most lastingly significant book was Theory of Economic Development, which appeared in 1911 (and was translated into English in 1934). It was at the University of Czernowitz, not far from the beginning of his career as an economist, that he worked out his conception of the entrepreneur, the maker of "new combinations,” as the driving force and characteristic figure of the fits-and-starts evolution of the capitalist economy. He was explicit that, while technological innovation was in the long run the most important function of the entrepreneur, organizational innovation in governance, finance, and management was comparable in significance.
Robert Solow