“Inflation and Employment in capitalist countries, in my own view, the change is the other way around: the constraints on the pressure of demand tend to be excessive, with the result that unemployment is much greater than can be justified by the needs of resource-allocation, and the rate of economic growth is appreciably less than it could be.
The main reason for this is that the distribution of power and, ultimately, the distribution of incomes, changes in favor of labor the faster the economy grows and the nearer it is to full employment, and over a longer period it changes in favor of capital the greater the volume of unemployment. This is the real reason why the continuance of Keynesian policies after the war led to a recrudescence of long-discredited ideas that go by the name of “monetarism.” The main attraction of monetarism was not its intellectual simplicity— inflation is a matter of the money supply, period— but that it elevated the fear of inflation to the unique position which could not be justified by the experience of numerous countries who habitually suffer from it.”

Nicholas Kaldor, Economics without Equilibrium (1985), p.37-38

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Nicholas Kaldor1

British/Hungarian economist 1908–1986

Paul Ormerod book The Death of Economics

Part II, Chapter 6, Unemployment and Inflation, p. 130
The Death of Economics (1994)

“The central theme of this paper is the character and causes of long-term changes in the personal distribution of income. Does inequality in the distribution of income increase or decrease in the course of a country's economic growth? What factors determine the secular level and trends of income inequalities?”

Simon Kuznets (1901–1985) economist

Source: "Economic growth and income inequality," 1955, p. 1

“Let there be no doubt that our present rate of inflation is the main cause of our economic difficulties. There never has been a more mistaken piece of economic analysis than the view that we should accept inflation to avoid unemployment. Inflation today, so far from being an alternative to unemployment, is its main cause. If our rate of cost increase is allowed to continue close to twice that of the average for the developed world it will increasingly price us out of world markets. Employers…will have to restrict their activities and still more their labour force in response to mounting and uncontainable wage and salary bills.”

Roy Jenkins (1920–2003) British politician, historian and writer

Hugh Anderson Memorial lecture at the Cambridge Union (28 February 1975), quoted in The Times (1 March 1975), p. 2
1970s

“An invariable accompaniment of growth in developed countries is the shift away from agriculture, a process usually referred to as industrialization and urbanization. The income distribution of the total population, in the simplest model, may therefore be viewed as a combination of the income distributions of the rural and of the urban populations. What little we know of the structures of these two component income distributions reveals that: (a) the average per capita income of the rural population is usually lower than that of the urban;' (b) inequality in the percentage shares within the distribution for the rural population is somewhat narrower than in that for the urban population… Operating with this simple model, what conclusions do we reach? First, all other conditions being equal, the increasing weight of urban population means an increasing share for the more unequal of the two component distributions. Second, the relative difference in per capita income between the rural and urban populations does not necessarily drift downward in the process of economic growth: indeed, there is some evidence to suggest that it is stable at best, and tends to widen because per capita productivity in urban pursuits increases more rapidly than in agriculture. If this is so, inequality in the total income distribution should increase”

Simon Kuznets (1901–1985) economist

Source: "Economic growth and income inequality," 1955, p. 7 as cited in: Anthony Barnes Atkinson, François Bourguignon, Handbook of Income Distribution, Vol. 1. Elsevier, 2000 p. 799

“The debate regarding which individual factor, among the three key factors producing the environmental crisis, causes more damage - the size of the human population on the planet, excessive consumption of resources or unequal/ unjust distribution of resources among countries [the wealthier countries consume much more resources than poorer countries] - is like a debate about which contributes more to a triangle, the base or the ribs of the triangle. You can not separate the three factors. If we analyze the numbers over a relatively longer time interval, we will conclude that the size of the population has a bigger impact than consumption. On the other hand, consumption and unequal distribution are also important aspects. If we do not change these three factors all at the same time, the quality of our life will change dramatically. Today humanity is delivering a serious blow to nature, but it is clear that nature will deliver the final blow.”

Paul R. Ehrlich (1932) American scientist and environmentalist

Paul Ehrlich, People should produce far fewer children, or expect the worst http://www.haaretz.co.il/1.1875624 (Dec. 2012), Haaretz

“If somebody prefers an income distribution more favorable to the poor for the sole reason that he is poor himself, this can hardly be considered as a genuine value judgment on social welfare.”

John Harsanyi (1920–2000) hungarian economist

Harsanyi, J. C. (1953). "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking". J. Polit. Economy 61 (5): p. 434

“If we continue to use industrial resources for other purposes – defence, housing, etc. thus preventing the diversion of resources to export work, the [exchange] rate will continue to fall. ... the basic idea of internal stability of prices and employment, which had dominated economic policy for so long will not be maintainable. It will not be possible to maintain stable internal prices and wages; it will not be possible to avoid unemployment. There will be a continuous process of change and readjustment and much of this will be painful.”

Rab Butler (1902–1982) British politician

Chancellor of the Exchequer
Source: Memorandum, 'External Action' (21 February 1952) advocating Operation ROBOT, quoted in Correlli Barnett, The Verdict of Peace. Britain Between Her Yesterday and the Future (London: Pan, 2002), p. 162

“In an era without the constraints of physical shelf space and other bottlenecks of distributions, narrowly targeted goods and services can be as economically attractive as mainstream fare.”

Chris Anderson book The Long Tail

Source: The Long Tail: Why the Future of Business Is Selling Less of More (2006), Ch. 4, p. 52

“You could say that GDP (National Income) and prosperity and wealth grows fastest when income tax rates are highest. And wealth slows, the economy slows, when taxes are cut. That's counter intuitive but if you look at any chart comparing tax rates and economic growth rates that's what you find. The 19th century knew it, the 18th century knew it but today you have a kind of counter revolution of junk economics that is basically anti-labor economics.”

Michael Hudson (economist) (1939) American economist

"Higher Taxes on Top 1% Equals Higher Productivity", Video Interview (13:28), The Real News Network (TRNN) http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=6000 (January 1, 2011)

“I myself have no doubt in the past tended to appear to many to be more concerned with the creation of wealth than with its distribution. I must confess that there is a degree of truth in this, but to the extent that it is true, it has been because of my conviction that the rapid growth of the economy, and the pressure that comes with it on demand for labour, both produces a rapid and substantial redistribution of income directly of itself and also makes it possible to assist more generously those who are not, from misfortune temporary or permanent, sharing in the general advance. The history of our last fifteen years or so demonstrates this conclusively.”

John James Cowperthwaite (1915–2006) British colonial administrator

February 26, 1969, page 104.
Official Report of Proceedings of the Hong Kong Legislative Council

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Nicholas Kaldor1

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