“Economics is the only field in which two people can share a Nobel Prize for saying opposite things.” - Roberto Alazar. Specifically, Hayek and Myrdal shared one in 1974.
Occasionally I will post some economic information, not because it is so compelling but because it is so consequential. I took an economics course years ago in college and promptly forgot as much of it as I could. But, over the years, my interest in the dismal science has grown because it influences many aspects of the markets and our financial services business.
So, for starters, I would like to share some words of wisdom from one of my favorite American economists – the recently retired, 87 year old Thomas Sowell.
“The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.”
“Despite a voluminous and often fervent literature on ‘income distribution,’ the cold fact is that most income is not distributed: It is earned.”
“The fact that the market is not doing what we wish it would do is no reason to automatically assume that the government would do better.”
“Economics is a study of cause-and-effect relationships in an economy. Its purpose is to discern the consequences of various ways of allocating resources which have alternative uses. It has nothing to say about philosophy or values, anymore than it has to say about music or literature.”
Until next time, cheers!
Jim