It is beyond belief that we know so little about how people get rich or poor, about how it is they come to dwell in comfort and health or die in penury and disease. Financial markets are the machines in which much of human welfare is decided; yet we know more about how our car engines work than about how our global financial system functions. We lurch from crisis to crisis. In a networked world, mayhem in one market spreads instantaneously to all others-and we have only the vaguest of notions how this happens, or how to regulate it. So limited is our knowledge that we resort, not to science, but to shamans. We place control of the world's largest economy in the hands of a few elderly men, the central bankers.
Benoît MandelbrotRelated topics
beyond central comfort control die disease dwell elderly few health human men knowledge limited lurch market mayhem penury place poor rich science work yet global handsRelated quotes
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
There are information asymmetries in this story. Health insurance is limping along. It's limited in scope, and then you other consequences. Insurance companies have high premiums to protect themselves. The ones who come to the insurance company are sicker and the people have to pay more. You have adverse selection. You have moral hazard. And the doctor does what's on the safe side -- defensive medicine -- without regard to cost. These are fundamental conditions that make health insurance difficult. You have some things that help. Some doctors understand that they shouldn't abuse the system. But you still see problems in the way doctors behave towards patients. They goof off. Sometimes it's too much work. Some things are difficult and risky to diagnose.
Kenneth Arrow
We have strong economic relationships with the rest of the UK. With our EU partners. And with large and small nations across the world. And I would contend that the basis of that framework is not Scotland's relationship with the other nations of the UK - strong and enduring though that will be. Rather, the reality is that our fundamental economic role is as a member of the world's largest single market - the European Union. And it is this relationship which does most to shape the rules and the terms of our global commercial ties. Nonetheless it remains for many an article of faith that a positive future for Scotland's economy depends squarely on our continuing membership of the United Kingdom. ... I for one was not convinced!
Alex Salmond
Classical science was based upon the belief that it is possible to formulate both the position and velocity at one time of any given particle. It followed that knowledge of the position and velocity of a given number of particles would enable the future behavior of the whole collection to be accurately predicted. The principle of Heisenberg is that given the determination of position, its velocity can be stated only as of a certain order of probability, while if its velocity is determined the correlative factor of position can be stated only as of a certain order of probability. Both cannot be determined at once, from which it follows necessarily that the future of the whole collection cannot possibly be foretold except in terms of some order of probability.
John Dewey
Only a book written by the God who knows the end from the beginning could predict the future with one hundred percent accuracy. The God of the Bible (unlike all other "gods”) is not limited by time, space, or matter. He created all of those on Day One and is "above” and "outside of” and "not limited by” His creation in any way. We are the ones who are limited by time, space, and matter, not God. The fact that He knows the future does not mean that He controls the future and we are robots acting out a pre-programmed set of instructions. He has complete knowledge, yet we have complete control at all times. He could step in and control everything, but then we would be robots and not humans. It is called Free Will. That's a gift God gave to mankind.
Kent Hovind