“The important Keynesian insight is that a high propensity to save will not generate high national saving unless it goes into investment, into accumulation of real capital. The "paradox of thrift" makes this point in an extreme way. In certain circumstances, when there is no demand for investment around, the economy can be no better off, or even worse off, if a thrifty public cuts consumption.”

— James Tobin

"Reflections on Japanese Political Economy" (1999)

Adopted from Wikiquote. Last update Oct. 1, 2023. History

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James Tobin 22

American economist 1918–2002

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“Protestantism made the West not only work, but also save and read. The Industrial Revolution was indeed a product of technological innovation and consumption. But it also required an increase in the intensity and duration of work, combined with the accumulation of capital through saving and investment. Above all, it depended on the accumulation of human capital. The literacy that Protestantism promoted was vital to all of this. On reflection, we would do better to talk about the Protestant word ethic.”

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“All that this country can achieve depends on developing our nation as a high growth, vibrant economy. In the modern global economy, even the greatest political ambition is doomed to failure without an economy driving employment, investment, research and development and rewarding success.”

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“When consumers purchase more goods, plants use more of their capacity, men are hired instead of laid off, investment increases and profits are high.”

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“Every civilization must be organized in such a way that it has invention, capital accumulation, and investment.”

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1. Human capital is of great importance in the modern economy.
2. Human capital has become of much greater significance during the past two decades.
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5. People need to invest in themselves during their whole lives.
6. Distance learning will become of crucial importance to the teaching and learning process.
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“Are we making more mistakes now? I don't think so. Science is a high-risk activity. And when you do science—this is very important incidentally for the general public, and for policy makers—if you are not wasting some of your money, you are not doing good science. It's a funny way to say this. You've got to back high-risk opportunities. And high-risk opportunities means some fraction of them are going to fail. And I think in any science funding scenario, you've got to say, 10, 20, maybe even 30% of your funds are going to be invested in failures.”

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Comments on need for failure in scientific research.
From the Winding Your Way through DNA symposium http://www.accessexcellence.org/RC/CC/lederman.php at the University of California, San Francisco in 1992 (URL accessed on October 20, 2008)

“Both history and contemporary data show that countries prosper more when there are stable and dependable rules, under which people can make investments without having to fear unpredictable new government interventions before these investments can pay off.”

Thomas Sowell (1930) American economist, social theorist, political philosopher and author

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“Enormous resources are invested in pseudoscience that could be better invested in improving the health and education of the public.”

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