Production In Economics Quotes & Sayings

Having taught economics courses at private vocational schools and universities, I have always had a problem with GNP as a yardstick of prosperity. GNP is improved by increases in questionable activities such as consumption of cigarettes and the production of weapons. Moreover, a substantial increase in car accidents will favorably affect GNP because more funerals, hospital visits, car repairs, and new car purchases will result. — Ernie J Zelinski

It is not the poverty of individuals and the community, not indebtedness to foreign nations, not the unfavourableness of the conditions of production, that force up the rate of exchange, but inflation. — Ludwig Von Mises

Markets are free when human beings have equal opportunities to influence the production and trade of desirable goods and services... Some people attain market control and set market prices due to favourable natural, social or political conditions: They attain a monopoly. The problem with monopolies is that they enable those who have attained them to extract money from society without providing goods or services of corresponding value. Apart from abolute monopolies, monopolies can also occur when the market is simply closed to new participants because overall supply can't be increased; these are known as entry monopolies. — Martin Adams

Nothing is easier to achieve than full employment, once it is divorced from the goal of full production and taken as an end in itself — Henry Hazlitt

The role played by man in production always consists solely in combining his personal forces with the forces of Nature in such a way that the cooperation leads to some particular desired arrangement of material. No human act of production amounts to more than altering the position of things in space and leaving the rest to Nature. — Ludwig Von Mises

Beyond the economics of production efficiency, animal welfare laws that require "humane" treatment are really not about animals; they're about humans and making humans feel better about using animals. We can comfort ourselves with the idea that we are acting in a "humane" way. — Gary L. Francione

In the great depression, things could only be set right by causing the idle plant to work again ... Roosevelt ... spent billions of public money and created a huge public debt, but by so doing he revived production and brought his country out of the depression. Businessmen, who in spite of such a sharp lesson continued to believe in old-fashioned economics, were infinitely shocked, and although Roosevelt saved them from ruin, they continued to curse him and to speak of him as 'the madman in the White House.' ... [It's one more] striking example of inability to learn from experience. — Bertrand Russell

What Greenspan was saying, in other words, was that there was absolutely nothing wrong with bidding up to $100 million in share value some hot-air Internet stock, because the lack of that company's "physical value" (i.e., the actual money those three employees weren't earning) could be overcome by the inherent value of their "ideas." To say that this was a radical reinterpretation of the entire science of economics is an understatement - economists had never dared measure "value" except in terms of actual concrete production. It was equivalent to a chemist saying that concrete becomes gold when you paint it yellow. It was lunacy. — Matt Taibbi

We can easily imagine a monetary organization which, by the exclusive use of notes or clearing-house methods, allows all transfers to be made with the instrumentality of sums of money that never change their position in space.
If differences due to the geographical position of money are disregarded in this way, we get the following law for the exchange-ratio between money and other economic goods: every economic good, that is ready for consumption (in the sense in which that phrase is usually understood in commerce and technology), has a subjective use-value qua consumption good at the place where it is and qua production good at those places to which it may be brought for consumption. — Ludwig Von Mises

This dilettantish inability to comprehend the essential issues of the conduct of production affairs is not only manifested in the writings of Marx and Engels. It permeates no less the contributions of contemporary pseudo-economics. — Ludwig Von Mises

Of valid economics pre-dating the Power Age (steam and electricity), there remains not a vestige. Of valid economics pre-dating the intensive and extensive use of electricity there will soon exist only rags and tatters. We still have to thank Adam Smith for insisting 'Consumption is the sole end and purpose of production;' but the old form of the law of demand and supply is outmoded, since supply has become practically inexhaustible. — Harriet Boyd Hawes

With the old economics destroyed, organizational forms perfected for industrial production have to be replaced with structures optimized for digital data. It makes increasingly less sense even to talk about a publishing industry, because the core problem publishing solves - the incredible difficulty, complexity, and expense of making something available to the public - has stopped being a problem. — Clay Shirky

When the price of coal falls because production has increased while demand has remained unaltered, then, for example, those retailers are involved who have taken supplies from the wholesale dealers at the old higher price but are now able to dispose of them only at the new and lower price. But this alone will not account for all the social changes brought about by the increase of production of coal. The increase in the supply of coal will have improved the economic position of the community. — Ludwig Von Mises

In neo-classical economic theory, it is claimed without evidence that people are basically self-seeking, that they want above all the satisfaction of their material desires: what economists call "maximising utility". The ultimate objective of mankind is economic growth, and that is maximized only through raw, and lightly regulated, competition. If the rewards of this system are spread unevenly, that is a necessary price. Others on the planet are to be regarded as either customers, competitors or factors of production. Effects upon the planet itself are mere "externalities" to the model, with no reckoning of the cost - at least for now. Nowhere in this analysis appears factors such as human cooperation, love, trust, compassion or hatred, curiosity or beauty. Nowhere appears the concept of meaning. What cannot be measured is ignored. But the trouble is that once our basic needs for shelter and food have been met, these factors may be the most important of all. — Carne Ross

An essential pedagogic step here is to relegate the teaching of mathematical methods in economics to mathematics departments. Any mathematical training in economics, if it occurs at all, should come after students have at the very least completed course work in basic calculus, algebra and differential equations (the last being one about which most economists are woefully ignorant). This simultaneously explains why neoclassical economists obsess too much about proofs and why non-neoclassical economists, like those in the Circuit School, experience such difficulties in translating excellent verbal ideas about credit creation into coherent dynamic models of a monetary production economy. — Steve Keen

Competition is often conflated with capitalism, but they are not at all the same. Capitalism involves private ownership of the means of production and distribution, but the word implies nothing about the way in which privately owned firms do business. Capitalism is perfectly compatible with a society in which a powerful state doles out favors to private monopolies, protects some enterprises from others, or even sets the prices privately owned firms may charge for their products. Indeed, while capitalists tend to praise the virtues of competition, many of them would just as soon avoid it. — Marc Levinson

Capital requires the separation of the worker from the means of production and subsistence — Peter Linebaugh

Tax systems are essentially the mechanisms by which societies decide what people have to share with each other versus what they can keep for themselves.

Instead of taxing production and consumption, we can simply capture land value instead. Maxim: Keep what you earn, pay for what you use.

In such a system, employees, consumers, business owners, business investors, homeowners, farmers and even retirees would be better off. Only those who use land inefficiently or seek to profit from it directly would lose - land speculators, banks, mining companies, extractive industries. — Martin Adams

As to the latter point - that by having a child in America you are somehow starving a child in Bangladesh - remember that agricultural economics is not a zero-sum game. Farmers want to make a living, so as demand increases, so does production. Not only that, but agricultural productivity has increased so rapidly that in some countries the government pays farmers not to plant crops in an effort to keep food prices from dropping. — J. Budziszewski

We do not need to understand economics in order to experience the benefits of freedom of exchange and production. But we may very well need to understand economics in order to sustain and maintain the institutional framework that enables us to realize the benefits that flow from freedom of exchange and production. — Peter Boettke

To whom is an international corporation answerable? Often they do not employ workers. They outsource manufacturing to places far away. If wages rise in one place, they can, almost instantly, transfer production to somewhere else. If a tax regime in one country becomes burdensome, they can relocate to another. To whom, then, are they accountable? By whom are they controllable? For whom are they responsible? To which group of people other than shareholders do they owe loyalty? The extreme mobility, not only of capital but also of manufacturing and servicing, is in danger of creating institutions that have power without responsibility, as well as a social class, the global elite, that has no organic connection with any group except itself. — Jonathan Sacks

Our inability to share the gifts of nature causes much suffering in the world today... We mistakenly believe that a free market should allow people and corporations to profit from nature, yet we've failed to consider the immense cost to life that occurs whenever people are allowed to reap what they haven't sown at the expense of others. While the privatization of capital can lead to production efficiencies that benefit the entire market, the same can't be said for privatization of nature. Whenever the income stream from nature is privatized, human beings take for themselves the gifts that would better be freely shared with everyone. — Martin Adams

Or how does it happen that trade, which after all is nothing more than the exchange of products of various individuals and countries, rules the whole world through the relation of supply and demand - a relation which, as an English economist says, hovers over the earth like the fate of the ancients, and with invisible hand allots fortune and misfortune to men, sets up empires and overthrows empires, causes nations to rise and to disappear - while with the abolition of the basis of private property, with the communistic regulation of production (and implicit in this, the destruction of the alien relation between men and what they themselves produce), the power of the relation of supply and demand is dissolved into nothing, and men get exchange, production, the mode of their mutual relation, under their own control again? — Karl Marx

In our time mass or collective production has entered our economics, our politics, even our religion, so that some nations have substituted the idea collective for the idea God. This in my time is the danger. There is great tension in the world, tension toward a breaking point, and men are unhappy and confused. At such a time it seems natural and good to me to ask myself these questions. What do I believe in? What must I fight for and what must I fight against? — John Steinbeck

The point of this, as Marx explains, is to show that according to classical economics the worker becomes a commodity, the production of which is subject to the ordinary laws of supply and demand. If the supply of workers exceeds the demand for labour, wages fall and some workers starve. Wages therefore tend to the lowest possible level compatible with keeping an adequate supply of workers alive. — Peter Singer

In boom times companies have high profits. They increase production to satisfy demand for goods. This leads to excess supply. Companies cut prices to compete for customers. leading to lower profits, lay-offs, and economic depression. Eventually lower prices lead to an increase in demand and profits go back up. The economy is a yo-yo. — Niall Kishtainy

Ultimately, we need to take control over the money supply out of the hands of our governments and make the production of money again subject to the principle of free association. The first step to endorsing and promoting this strategy is to realize that governments do not - indeed cannot - fulfill any positive role whatever through the control of our money. — Jorg Guido Hulsmann

Exchange, fair or unfair,always presupposes and includes the rule of the bourgeoisie. — Vladimir Ilyich Lenin

Economics has revealed a great truth about the natural law of human interaction: that not only is production essential to man's prosperity and survival, but so also is exchange. — Murray Rothbard

The core of the doctrine consists in the proposition that the supply of money and the demand for it both affect its value. This proposition is probably a sufficiently good hypothesis to explain big changes in prices; but it is far from containing a complete theory of the value of money. It describes one cause of changes in prices; it is nevertheless inadequate for dealing with the problem exhaustively. By itself it does not comprise a theory of the value of money; it needs the basis of a general value theory. One after another, the doctrine of supply and demand, the cost-of-production theory, and the subjective theory of value have had to provide the foundations for the Quantity Theory. — Ludwig Von Mises

But no moral philosopher, from Aristotle to Aquinas, to John Locke and Adam Smith, divorced economics from a set of moral ends or held the production of wealth to be an end in itself; rather it was seen as a means to the realization of virtue, a means of leading a civilized life. — Daniel Bell

What causes recessions? Many economists talk about the need for a consumer economy, but we can't have a consumer economy if people can't afford to consume, and the only way they can afford to consume over the long run is if they create new wealth to either consume at that time or to defer as investments for later consumption. Simply put, the best way to have a functioning economy is to focus on having a wealth-producing economy. But when wealth can't be created in spite of the need for such, the production of wealth has been artificially limited, and this artificial limitation is the root cause of business recessions. — Martin Adams

Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates
riches. — Ludwig Von Mises

They did not suffer shipwreck because the entrepreneurs were not public-spirited, as the socialist-etatistic legend has it. They were bound to fail because the economic organization based upon division of labour and private property in the means of production can function only so long as price-determination in the market is free. — Ludwig Von Mises

Etatism by no means aims at the formal transformation of all ownership of the means of production into State ownership by a complete overthrow of the established legal system. Only the biggest industrial, mining, and transport enterprises are to be nationalized; in agriculture, and in medium- and small-scale industry, private property is nominally to continue. Nevertheless, all enterprises are to become State undertakings in fact. Owners are to be left the title and dignity of ownership, it is true, and to be given a right to the receipt of a 'reasonable' income, 'in accordance with their position'; but, in fact, every business is to be changed into a government office and every livelihood into an official profession. — Ludwig Von Mises

The phenomenon of money presupposes an economic order in which production is based on division of labour and in which private property consists not only in goods of the first order (consumption goods), but also in goods of higher orders (production goods). In such a society, there is no systematic centralized control of production, for this is inconceivable without centralized disposal over the means of production. — Ludwig Von Mises