I did say in print, in February, 1929 that there was no hope for economic recovery in Europe before American interest rates came down. That wouldn't be until the American boom collapsed - which was likely to happen within the next few months.And this did, in fact, happen in October 1929. What made me expect this, of course, was one of my main theoretical beliefs - that an inflationary boom cannot be maintained indefinitely. I was sure that a very unstable situation was created by the artificial prolongation of the boom in 1927, when the Federal Reserve tried to stave off a collapse by credit expansion.
Friedrich HayekRelated topics
american boom came collapse course credit expansion expect fact february federal few hope interest likely main next october off print prolongation recovery reserve say situation stave sure try europe months ratesRelated quotes
A careful examination of the facts will decide the problem of government more and more in favor of liberty, just as it does all other economic problems. We are convinced, so far as we are concerned, that one day societies will be established to agitate for the freedom of government, as they have already been established on behalf of the freedom of commerce.And we do not hesitate to add that after this reform has been achieved, and all artificial obstacles to the free action of the natural laws that govern the economic world have disappeared, the situation of the various members of society will become the best possible.
Gustave de Molinari
Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation. If in the course of such an inflation the rise in commodity prices exceeds the rise in nominal wage rates, unemployment will drop. But what makes unemployment shrink is precisely the fact that real wage rates are falling.
Ludwig von Mises
Figure 12-6 pulls together in a simplified way the main elements of income determination. Without saving and investment, there would be a circular flow of income between business and the public: above, business pays out wages, interest, rents, and profits to the public in return for the services of labor and property; and below, the public pays consumption dollars to business in return for goods and services.
Realistically, we must recognize that the public will wish to save some of its income, as shown at the spigot Z. Hence, businesses cannot expect their consumption sales to be as large as the total of wages, interest, rents, and profits.
Paul Samuelson
I would try out the [C++] language [at AT&T] as it was being developed and make comments on it. It was part of the work atmosphere there. And you'd write something and then the next day it wouldn't work because the language changed. It was very unstable for a very long period of time. At some point, I said, no, no more. In an interview I said exactly that, that I didn't use it because it wouldn't stay still for two days in a row. When Stroustrup read the interview he came screaming into my room about how I was undermining him and what I said mattered and I said it was a bad language.
Ken Thompson
My own position is somewhere in between. I am not sure that the economic arguments for an early step toward real union are very compelling. I have deep feelings, however, about the political necessity of creating in Western Europe an international framework which would bridge national sovereignties to such a degree as to give a different aspect to the German question by providing a home for the German people other than the national home and thus lifting German horizons beyond those national limits with which the Germans have shown themselves so incapable of coping.
George F. Kennan
