7 Basic Economic Great Quotes – TRUTHS

You can learn a lot about basic economics from great quotes.

7 Basic Economic Great Quotes – TRUTHS

“…Capitalism is a system that begins not with taking but with giving to others.” ~ George Gilder

1. “…Capitalism is a system that begins not with taking but with giving to others.”

George Gilder

This sounds counter-intuitive, but Gilder is right. The underlying motivation of the entrepreneur is to satisfy not his need, but his customers. That’s his only path to success and profitability.

And once profitable, the entrepreneur invariably puts his new capital to work expanding his business, which in turn creates better products, more jobs, and more wealth for more people.

“Nothing contributes so much to the prosperity and happiness of a country as high profits.” ~ David Ricardo

2. “Nothing contributes so much to the prosperity and happiness of a country as high profits.”

David Ricardo

To judge profits achieved in a free economy without understanding what they mean to the nation at large is a failure to understand economics.

Countries where citizens are generating healthy profits by their individual efforts are countries with a higher tax base, higher research and development, better public services, more robust charity and philanthropy, and ultimately greater happiness and quality of life.

ONE WORLD! NOT ONE WORLD GOVERNMENT!

3. “Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.”

Frédéric Bastiat
“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.”

Our conversations about government spending would be so dramatically different if we first realized that the government has no money to spend that it does not first take from someone else.

Whether it be confiscation (taxation) or debt (future confiscation), government spending, legitimate to the extent that it funds the necessities of government, is always an extraction of wealth from the private sector.

Government needs revenues to function. Everyone agrees on that. But beyond a certain point, who will spend the money more effectively: bureaucrats or the people who worked to earn it?

4. “Differences in habits and attitudes are differences in human capital, just as much as differences in knowledge and skills—and such differences create differences in economic outcomes.”

Thomas Sowell

No attempt to manufacture an equal economic outcome can ever succeed. This quote explains why: differences among people—such as their habits, abilities, attitudes, and goals—always lead to inequality.

No matter how hard governments may try, they can’t force people to be the same. This is called reality.

Without property rights freedom can’t exist. If individuals don’t have control over their property, then the state does. If the state owns your property, the state owns you.

If history could teach us anything, it would be that private property is inextricably linked with civilization.” ~ Ludwig Von Mises

5. “If history could teach us anything, it would be that private property is inextricably linked with civilization.”

Ludwig Von Mises

One of the notable achievements of the Left has been to correlate private property with greed. This often puts defenders of private property on their heels.

It shouldn’t.

Owning property gives people dignity. And people who own property will be far better stewards of that property than any disinterested third party.

ENOUGH IS ENOUGH! All lovers of freedom should be staunch defenders of private property. Without it, a productive and free society is impossible

All lovers of freedom should be staunch defenders of private property. Without it, a productive and free society is impossible

Other Reads: Boundaries of Order: Private Property as a Social System

The free market is not a system… It is not something that Washington implements. It does not exist in any legislation, law, bill, regulation, or book. It is what you get when people act on their own, entirely without central direction, and with their own property…” ~ Jeffrey Tucker

6. “The free market is not a system… It is not something that Washington implements. It does not exist in any legislation, law, bill, regulation, or book. It is what you get when people act on their own, entirely without central direction, and with their own property…”

Jeffrey Tucker

Nobody invented capitalism. It’s what free people do naturally—exchange goods and services for their own benefit.

Before there are interventions, regulations, stipulations, and controls–there are humans acting, associating, cooperating, building, and creating. That economic freedom is what we call capitalism.

When people are free to do what they want—within the bounds of the law, of course—they do their best work. Simple—and wonderful—as that.

“Under capitalism, man oppresses man. But under socialism, it’s the other way around.” ~ Russ Roberts

7. “Under capitalism, man oppresses man. But under socialism, it’s the other way around.”

Russ Roberts

Human beings are flawed creatures. They will make bad choices no matter what kind of economy they’re operating in.

The Left thinks we can avoid the dark side of human nature if we just get rid of capitalism. But all the Left does is replace one flawed actor, the individual, with another flawed, but more powerful actor: government bureaucracy at best and a totalitarian monster at worst.

Bottom line:

If you want to live a productive, fulfilling, and meaningful life the free market is your best chance.

Really, it’s your only chance.

David Bahnsen, author of There’s No Free Lunch: 250 Economic Truths, for Prager University.

US economy shrank 1.4% at beginning of 2022, marking worst quarter in 2 years

US economy shrank 1.4% at beginning of 2022, marking worst quarter in 2 years

Economists expected the economy to expand by 1.1%, a marked slowdown from 2021

Published 11 hours ago

Harvard University professor Kenneth Rogoff, a former chief economist at the International Monetary Fund, tells 'Mornings with Maria' that GDP falling at a 1.4% annualized rate is 'even below the worst' he thought it might have been. 

video

The U.S. economy cooled markedly in the first three months of the year, as snarled supply chains, record-high inflation and labor shortages weighed on growth and slowed the pandemic recovery.

Gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 1.4% on an annualized basis in the three-month period from January through March, the Commerce Department said in its first reading of the data on Thursday. 

COLLAPSING TRUCKER DEMAND COULD FORESHADOW LOOMING RECESSION

Refinitiv economists expected the report to show the economy had expanded by 1.1%. It marked the worst performance since the spring of 2020, when the U.S. economy was still deep in the throes of the COVID-induced recession. 

inflation groceries

“Today’s shock drop in GDP is a wake-up call that the economy isn’t as strong as we all thought,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “It’s possible that GDP gets revised higher next month, as this is just the first release and there will be two revisions, but it is a warning sign.”

The headline figure often obscures the whole picture because the Commerce Department calculates the GDP on a quarter-over-quarter basis as if that level of growth were sustained for a full year; in times of huge swings up or down, it can exaggerate both the decline in growth and the subsequent rebound.

Looking at the quarterly data, the nation’s GDP declined by about 0.3% from the fourth quarter to the first quarter, compared with an increase of 1.68% between the third and fourth quarter. 

Port California economy

The substantial downturn stems from a widening trade deficit, with the U.S. importing far more than it exported: In the three-month period from January to March, imports surged by nearly 20% as businesses and consumers bought more goods from abroad. But exports fell about 6% – an imbalance that widened the trade deficit. 

The U.S. also saw a slower pace of inventory investment by businesses in the first quarter, following a surge in investors at the end of 2021 as companies restocked in anticipation of the holiday-shopping season.

But key pillars of the economy – consumer spending and business investment – remained solid last quarter: Businesses and consumers boosted their spending by 3.6% at the start of the year, compared with 6.1% last year. Another bright spot in the economy is the jobs market. Unemployment fell to 3.6% last month, the lowest level since the pandemic began in February 2020, and jobless claims have continued to fall amid an exceptionally tight labor market.

“Huge miss on GDP this morning, but just looking at headlines is misleading,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “We’d rate the report neutral overall. Trade, inventories and government spending all dragged, but the consumer held up and business investment was strong.”

Mall shoppers Virginia

The latest data comes amid growing fears on Wall Street that a recession is looming in the next two years as a result of the Russian war in Ukraine, soaring inflation and an increasingly hawkish Federal Reserve. With the consumer price index at a 40-year high, the U.S. central bank is moving quickly to raise rates in an effort to cool demand. 

Fed policymakers hiked the benchmark federal funds rate by 25 basis points in March and have since telegraphed that steeper, 50-point rate hikes are “on the table” at upcoming meetings, beginning in May. 

The new challenges have prompted economists to downgrade their expectations for the year. The International Monetary Fund said in its latest World Economic Outlook that global domestic gross product will grow by 3.6% this year, a 0.8 percentage point drop from its January estimate. 

Fed Chairman Jerome Powell has pushed back against concern that further tightening by the central bank will trigger a recession and has maintained optimism that the Fed can strike a delicate balance between taming inflation without crushing the economy. 

Still, he acknowledged the difficulty of the task ahead and said it is “absolutely essential” for central bankers to restore price stability. 

“Our goal is to use our tools to get demand and supply back in sync, so inflation moves back into place, without a slowdown that amounts to a recession,” Powell said during a recent panel discussion with the IMF and the World Bank. “I don’t think you’ll hear anyone at the Fed say that’s straightforward and easy. It’s going to be challenging.”