A casual reading of the development literature suggests that there is a dividing line circa 1960. Before 1960 writers on development generally assumed as a matter of course that economies of scale were a limiting factor on the ability to profitably establish industries in less developed countries, and that in the presence of such economies of scale pecuniary external economies assume real welfare significance. They seem, however, to have been unaware of the degree to which economies of scale raise problems for explicit modeling of competition, and/or of the extent to which the drive for formalism was pushing economics toward explicit models. After 1960, by contrast, economists working on development had been trained in the formalism of constant-returns general equilibrium, and did not so much reject the possibility that economies of scale might matter as simply fail to notice it.
Paul KrugmanRelated topics
ability casual contrast course degree development drive economics equilibrium factor fail formalism general less limiting line matter might modeling notice possibility presence raise reading real significance workingRelated quotes
We will not be picking up axes and breaking into people's homes. But we will not remain silent either. Moderation in the face of evil is not what our age needs. As Ronald Reagan declared, "The future doesn't belong to the fainthearted." We must uncap our pens; we must speak words of truth. We are facing a determined enemy who is striving through all means to destroy the West and snuff out our traditions of free thought, free speech, and freedom of religion. Make no mistake: if we fail, we will be enslaved. We must not let the violent fanatics dictate what we draw, what we say, and what we read. We must rebel against their suffocating rules and thuggish demands at every turn. You can help the fight just by reading this book, which explains the many ways in which Islam has marked for death not just me, but all of Western civilization. We must, in the words of Revolutionary War veteran General John Stark, "Live free or die."
Geert Wilders
When, in the slow procession of the ages, man was developed on this planet, the change worked by his appearance was at first slight. Further ages passed while he groped and struggled by infinitesimal degrees upward through the lower grades of savagery; for the general law is that life which is advanced and complex, whatever its nature, changes more quickly than simpler and less advanced forms. The life of savages changes and advances with extreme slowness, and groups of savages influence one another but little. The first rudimentary beginnings of that complex life of communities which we call civilization marked a period when man had already long been by far the most important creature on the planet. The history of the living world had become, in fact, the history of man, and therefore something totally different in kind as well as in degree from what it had been before.
Theodore Roosevelt
For The United States, the leading space faring nation for nearly half a century, to be without carriage to low Earth orbit and with no human exploration capability to go beyond Earth orbit for an indeterminate time into the future, destines our nation to become one of second or even third rate stature. While the President's plan envisages humans traveling away from Earth and perhaps toward Mars at some time in the future, the lack of developed rockets and spacecraft will assure that ability will not be available for many years.
Without the skill and experience that actual spacecraft operation provides, the USA is far too likely to be on a long downhill slide to mediocrity. America must decide if it wishes to remain a leader in space. If it does, we should institute a program which will give us the very best chance of achieving that goal.
Neil Armstrong
So about 80 years after the Constitution is ratified, the slaves are freed. Not so you'd really notice it of course; just kinda on paper. And that of course was at the end of the Civil War. Now there is another phrase I dearly love. That is a true oxymoron if I've ever heard one - civil war. D'you think anybody in this country could ever really have a civil war? "Say, pardon me...*machinegun sounds*... I'm awfully sorry! Awfully sorry."
Now of course the Civil War has been over for about 120 years. But... not so you'd really notice it. Because you see we have these people called "Civil War buffs"... in fact some of these people actually get dressed up once a year and then go out and re-fight these battles. D'you know what I say to these people? USE LIVE AMMUNITION ASSHOLES, WOULD YA PLEASE?! You might just raise the intelligence level of the American gene pool!
George Carlin
Keynes didn't make an all-out assault on Economic Man, but he often resorted to plausible psychological theorizing rather than careful analysis of what a rational decision-maker would do. Business decisions were driven by "animal spirits,” consumer decisions by a psychological tendency to spend some but not all of any increase in income, wage settlements by a sense of fairness, and so on.
But was it really a good idea to diminish the role of Economic Man that much? No, said Friedman, who argued in his 1953 essay "The Methodology of Positive Economics” that economic theories should be judged not by their psychological realism but by their ability to predict behavior. And Friedman's two greatest triumphs as an economic theorist came from applying the hypothesis of rational behavior to questions other economists had thought beyond its reach.
Paul Krugman