The law of property determines who owns something, but the market determines how it will be used.
Ronald CoaseRead
We must first note that economic factors are taken into account in a world in which ignorance, prejudice, and mental confusion, encouraged rather than dispelled by the political organization, exert a strong influence on policy making.
Interpretation
What this quote means
Economic policies are heavily influenced by societal issues like ignorance and prejudice. Understanding these factors is crucial for effective decision-making.
Ronald Coase highlights the intricate relationship between economic decision-making and the social and political contexts in which it occurs. He argues that before formulating policies, it's essential to recognize the pervasive ignorance and prejudice that can misguide political organizations, ultimately affecting the outcomes of economic policies. This underscores the importance of clarity and informed discourse in shaping effective and just economic practices.
Themes
EconomicsPolicyIgnorancePrejudiceDecision-Making
In practice
Example use cases
During a debate on economic policy, one might refer to this quote to highlight the importance of informed decision-making.
More from Ronald Coase
All quotes →Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.
Ronald CoaseRead
During the two centuries since the publication of 'The Wealth of Nations,' the main activity of economists, it seems to me, has been to fill the gaps in Adam Smith's system, to correct his errors and to make his analysis vastly more exact.
Ronald CoaseRead
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