The tourist business is a trap, it is a tained honey; Man clearly should have stayed in bed, and not invented money.
Kenneth E. BouldingAs long as man was small in numbers and limited in technology, he could realistically regard the earth as an infinite reservoir, an infinite source of inputs and an infinite cesspool for outputs. Today we can no longer make this assumption. Earth has become a space ship, not only in our imagination but also in the hard realities of the social, biological, and physical system in which man is enmeshed.
Kenneth E. BouldingThe troubles of the 20th century are not unlike those of adolescence -- rapid growth beyond the ability of organizations to manage, uncontrollable emotion, and a desperate search for identity. Out of adolescence, however, comes maturity in which physical growth with all its attendant difficulties comes to an end, but in which growth continues in knowledge, in spirit, in community, and in love; it is to this that we look forward as a human race. This goal, once seen with our eyes, will draw our faltering feet toward it.
Kenneth E. BouldingOne advantage of exhibiting a hierarchy of systems in this way is that it gives us some idea of the present gaps in both theoretical and empirical knowledge. Adequate theoretical models extend up to about the fourth level, and not much beyond. Empirical knowledge is deficient at practically all levels.
Kenneth E. BouldingThere is no such thing as economics, only social science applied to economic problems.
Kenneth E. BouldingIt [knowledge] is clearly related to information, which we can now measure; and an economist especially is tempted to regard knowledge as a kind of capital structure, corresponding to information as an income flow. Knowledge, that is to say, is some kind of improbable structure or stock made up essentially of patterns - that is, improbable arrangements, and the more improbable the arrangements, we might suppose, the more knowledge there is.
Kenneth E. BouldingThe world moves into the future as a result of decisions, not as a result of plans. Plans are significant only insofar as they affect decisions.
Kenneth E. BouldingThere is something, however humble, which can properly be called skill among those who recognise themselves as economists.
Kenneth E. BouldingEconomic progress means the discovery and application of better ways of doing things to satisfy our wants. The piping of water to a household that previously dragged it from a well, the growing of two blades of grass where one grew before, the development of a power loom that enables one man to weave ten times as much as he could before, the use of steam power and electric power instead of horse or human power - all these things clearly represent economic progress.
Kenneth E. BouldingAlmost every organization... exhibits two faces a smiling face which it turns toward its members and a frowning face which it turns to the world outside.
Kenneth E. BouldingIt is almost as hard to define mathematics as it is to define economics, and one is tempted to fall back on the famous old definition attributed to Jacob Viner, "Economics is what economists do," and say that mathematics is what mathematicians do. A large part of mathematics deals with the formal relations of quantities or numbers.
Kenneth E. Boulding... the fouling of the nest which has been typical of man's activity in the past on a local scale now seems to be extending to the whole world society.
Kenneth E. BouldingThe illusion that consumption - and its correlative, income - is desirable probably stems from too great preoccupation with what Knight calls "one-use goods," such as food and fuel, where the utilization and consumption of the good are tightly bound together in a single act or event. ... any economy in the consumption of fuel that enables us to maintain warmth or to generate power with lessened consumption again leaves us better off. ... there is no great value in consumption itself.
Kenneth E. BouldingI shall argue that it is the capital stock from which we derive satisfaction, not from the additions to it (production) or the subtractions from it (consumption): that consumption, far from being a desideratum, is a deplorable property of the capital stock which necessitates the equally deplorable activity of production: and that the objective of economic policy should not be to maximize consumption or production, but rather to minimize it, i.e. to enable us to maintain our capital stock with as little consumption or production as possible.
Kenneth E. BouldingAre we to regard the world of nature simply as a storehouse to be robbed for the immediate benefit of man? ... Does man have any responsibility for the preservation of a decent balance in nature, for the preservation of rare species, or even for the indefinite continuance of his race?
Kenneth E. BouldingWe should always bear in mind that numbers represent a simplification of reality.
Kenneth E. BouldingKnow this: though love is weak and hate is strong, Yet hate is short, and love is very long.
Kenneth E. BouldingHuman artifacts not only include material structures and objects, such as buildings, machines, and automobiles, but they also include organizations, organizational structures like extended families . . . tribes, nations, corporations, churches, political parties, governments, and so on. Some of these may grow unconsciously, but they all originate and are sustained by the images in the human mind.
Kenneth E. BouldingReality, in its quantitative aspect, must be considered as a system of populations... The general study of the equilibria and dynamics of populations seems to have no name; but as it has probably reached its highest development in the biological study known as 'ecology,' this name may well be given to it.
Kenneth E. Boulding[The notion of equilibrium] is a notion which can be employed usefully in varying degrees of looseness. It is an absolutely indispensable part of the toolbag of the economist and one which he can often contribute usefully to other sciences which are occasionally apt to get lost in the trackless exfoliations of purely dynamic systems.
Kenneth E. BouldingOne of the most important skills of the economist, therefore, is that of simplification of the model. Two important methods of simplification have been developed by economists. One is the method of partial equilibrium analysis (or microeconomics), generally associated with the name of Alfred Marshall and the other is the method of aggregation (or macro-economics), associated with the name of John Maynard Keynes.
Kenneth E. BouldingEconomists and technologists bring the "bits", but it requires the social scientists and humanists to bring the "wits.
Kenneth E. BouldingNothing fails like success because we don't learn from it. We learn only from failure.
Kenneth E. Boulding[on the theory of the firm] It is exactly analogous to the analysis of the reactions of a consumer by means of indifferent curves. Indeed, a consumer is merely a 'firm' whose product is 'utility.'
Kenneth E. BouldingThe evolutionary vision is agnostic in regard to systems in the universe of greater complexity than those of which human beings have clear knowledge. It recognizes aesthetic, moral, and religious ideas and experiences as a species, in this case of mental structures or of images, which clearly interacts with other species in the world's great' ecosystem.
Kenneth E. Boulding[The question for the behavioral disciplines is simply] what is better, and how do we get there?
Kenneth E. BouldingIt is clear that the building of models is not a purely mechanical process but requires skill of a high order - not merely mathematical skill but a sensitivity to the relative importance of different factors and a critical, almost an artistic, faculty in the selection of behaviour equations which are reasonable, tentative hypotheses in explaining the behaviour of actual economies.
Kenneth E. Boulding