Economics

"[…] for as all organic beings are striving, it may be said, to seize on each place in the economy of nature, if any one species does not become modified and improved in a corresponding degree with its competitors, it will soon be exterminated." (Charles Darwin, "On the Origin of Species", 1859)

"By ecology we mean the body of knowledge concerning the economy of nature - the investigation of the total relations of the animal both to its inorganic and to its organic environment; including, above all, its friendly and inimical relations with those animals and plants with which it comes directly or indirectly into contact - in a word, ecology is the study of all those complex interrelations referred to by Darwin as the conditions of the struggle for existence." (Ernst Häckel, [lecture] 1869)

"We should always aim toward the economy of thought. It is not enough to give models for imitation. It must be possible to pass beyond these models and, in place of repeating their reasoning at length each time, to sum this in a few words." (Jules H Poincaré, 1909)

"Elegance may produce the feeling of the unforeseen by the unexpected meeting of objects we are not accustomed to bring together; there again it is fruitful, since it thus unveils for us kinships before unrecognized. It is fruitful even when it results only from the contrast between the simplicity of the means and the complexity of the problem set; it makes us then think of the reason for this contrast and very often makes us see that chance is not the reason; that it is to be found in some unexpected law. In a word, the feeling of  mathematical elegance is only the satisfaction due to any adaptation of the solution to the needs of our mind, and it is because of this very adaptation that this solution can be for us an instrument. Consequently this esthetic satisfaction is bound up with the economy of thought." (Jules Henri Poincaré, "The Future of Mathematics", Monist Vol. 20, 1910)

"Tektology must discover what modes of organization are observed in nature and human activities; then generalize and systemize these modes; further it should explain them, that is, elaborate abstract schemes of their tendencies and regularities; finally, based on these schemes it must determine the directions of organizational modes development and elucidate their role in the economy of world processes. This general plan is similar to the plan of any other science but the object studied differs essentially. Tektology deals with the organizational experience not of some particular branch but with that of all of them in the aggregate; to put it in other words, tektology embraces the material of all the other sciences, as well as of all the vital practices from which those sciences arose, but considers this material only in respect of methods, i.e. everywhere it takes an interest in the mode of the organization of this material."  (Alexander Bogdanov, "Tektology: The Universal Organizational Science" Vol. I, 1913)

"[Statistics] is both a science and an art. It is a science in that its methods are basically systematic and have general application; and an art in that their successful application depends to a considerable degree on the skill and special experience of the statistician, and on his knowledge of the field of application, e.g. economics." (Leonard H C Tippett, "Statistics", 1943)

"To some people, statistics is ‘quartered pies, cute little battleships and tapering rows of sturdy soldiers in diversified uniforms’. To others, it is columns and columns of numerical facts. Many regard it as a branch of economics. The beginning student of the subject considers it to be largely mathematics." (The Editors, "Statistics, The Physical Sciences and Engineering", The American Statistician, Vol. 2, No. 4, 1948)

"The concept of the ‘singleness of the superlative’ is simple: no problem in dynamics can be properly formulated in terms of more than one superlative, whether the superlative in question is stated as a minimum or as a maximum (e.g., a minimum expenditure of work can also be stated as a maximum economy of work). If the problem has more than one superlative, the problem itself becomes completely meaningless and indeterminate." (George Kingsley Zipf, "Human Behavior and the Principle of Least Effort: An Introduction of Human Ecology", 1949)

"Business-cycle theorists concerned themselves with why the economy naturally generated fluctuations in employment and output, [while the rest of the profession] continued to operate on the assumption that full employment was the natural, equilibrium position for the economy." (Robert A Gordon, "Business Fluctuations", 1952)

"Perhaps as important is the relation between the existence of solutions to a competitive equilibrium and the problems of normative or welfare economics." (Kenneth J Arrow & Gerard Debreu. "Existence of an equilibrium for a competitive economy", Econometrica: Journal of the Econometric Society, 1954)

"To be sure, mathematics can be extended to any branch of knowledge, including economics, provided the concepts are so clearly defined as to permit accurate symbolic representation. That is only another way of saying that in some branches of discourse it is desirable to know what you are talking about." (James R Newman, "The World of Mathematics", 1956)

"Systems engineering embraces every scientific and technical concept known, including economics, management, operations, maintenance, etc. It is the job of integrating an entire problem or problem to arrive at one overall answer, and the breaking down of this answer into defined units which are selected to function compatibly to achieve the specified objectives. [...] Instrument and control engineering is but one aspect of systems engineering - a vitally important and highly publicized aspect, because the ability to create automatic controls within overall systems has made it possible to achieve objectives never before attainable, While automatic controls are vital to systems which are to be controlled, every aspect of a system is essential. Systems engineering is unbiased, it demands only what is logically required. Control engineers have been the leaders in pulling together a systems approach in the various technologies." (Instrumentation Technology, 1957)

"[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 Boulding, The Skills of the Economist", Journal of Political Economy 67 (1), 1959)

"One of the most important skills of the economist, therefore, is that of simplification of the model." (Kenneth Boulding, "The Skills of the Economist", Journal of Political Economy 67 (1), 1959)

"The ability to work with systems of general equilibrium is perhaps one of the most important skills of the economist - a skill which he shares with many other scientists, but in which he has perhaps a certain comparative advantage." (Kenneth Boulding, "The Skills of the Economist", Journal of Political Economy 67 (1), 1959)

"Science is usually understood to depict a universe of strict order and lawfulness, of rigorous economy - one whose currency is energy, convertible against a service charge into a growing common pool called entropy." (Paul A Weiss,"Organic Form: Scientific and Aesthetic Aspects", 1960)

"An economy may be in equilibrium from a short-period point of view and yet contain within itself incompatibilities that are soon going to knock it out of equilibrium." (Joan Robinson, "Essays in the Theory of Economic Growth", 1965)

"I would therefore urge that people be introduced to [the logistic equation] early in their mathematical education. This equation can be studied phenomenologically by iterating it on a calculator, or even by hand. Its study does not involve as much conceptual sophistication as does elementary calculus. Such study would greatly enrich the student’s intuition about nonlinear systems. Not only in research but also in the everyday world of politics and economics, we would all be better off if more people realized that simple nonlinear systems do not necessarily possess simple dynamical properties." (Robert M May, "Simple Mathematical Models with Very Complicated Dynamics", Nature Vol. 261 (5560), 1976)

"The concept of a general equilibrium has no relevance to the real world (in other words, classical economics is an exercise in futility)." (George Soros, "The Alchemy of Finance: Reading the Mind of the Market", 1987)

"The cybernetics phase of cognitive science produced an amazing array of concrete results, in addition to its long-term (often underground) influence: the use of mathematical logic to understand the operation of the nervous system; the invention of information processing machines (as digital computers), thus laying the basis for artificial intelligence; the establishment of the metadiscipline of system theory, which has had an imprint in many branches of science, such as engineering (systems analysis, control theory), biology (regulatory physiology, ecology), social sciences (family therapy, structural anthropology, management, urban studies), and economics (game theory); information theory as a statistical theory of signal and communication channels; the first examples of self-organizing systems. This list is impressive: we tend to consider many of these notions and tools an integrative part of our life […]" (Francisco Varela, "The Embodied Mind", 1991)

"The strangest and most wonderful constructions in the whole animal world are the amazing, intricate constructions made by the primate Homo sapiens. Each normal individual of this species makes a self. Out of its brain it spins a web of words and deeds, and, like the other creatures, it doesn't have to know what it's doing; it just does it. This web protects it, just like the snail's shell. […] As such, it plays a singularly important role in the ongoing cognitive economy of that living body, because, of all the things in the environment an active body must make mental models of, none is more crucial than the model the agent has of itself." (Daniel Dennett, "Consciousness Explained", 1991)

"Because the individual parts of a complex adaptive system are continually revising their ('conditioned') rules for interaction, each part is embedded in perpetually novel surroundings (the changing behavior of the other parts). As a result, the aggregate behavior of the system is usually far from optimal, if indeed optimality can even be defined for the system as a whole. For this reason, standard theories in physics, economics, and elsewhere, are of little help because they concentrate on optimal end-points, whereas complex adaptive systems 'never get there'. They continue to evolve, and they steadily exhibit new forms of emergent behavior." (John H Holland, "Complex Adaptive Systems", Daedalus Vol. 121 (1), 1992)

"Ecological Economics studies the ecology of humans and the economy of nature, the web of interconnections uniting the economic subsystem to the global ecosystem of which it is a part." (Robert Costanza, "Ecological Economics: the science and management of sustainability", 1992)

"In nonlinear systems - and the economy is most certainly nonlinear - chaos theory tells you that the slightest uncertainty in your knowledge of the initial conditions will often grow inexorably. After a while, your predictions are nonsense." (M Mitchell Waldrop, "Complexity: The Emerging Science at the Edge of Order and Chaos", 1992)

"In many parts of the economy, stabilizing forces appear not to operate. Instead, positive feedback magni?es the effects of small economic shifts; the economic models that describe such effects differ vastly from the conventional ones. Diminishing returns imply a single equilibrium point for the economy, but positive feedback - increasing returns - makes for many possible equilibrium points. There is no guarantee that the particular economic outcome selected from among the many alternatives will be the ‘best’ one."  (W Brian Arthur, "Returns and Path Dependence in the Economy", 1994)

"We need to abandon the economist's notion of the economy as a machine, with its attendant concept of equilibrium. A more helpful way of thinking about the economy is to imagine it as a living organism." (Paul Ormerod, "The Death of Economics", 1994)

"When the study of the household (ecology) and the management of the household (economics) can be merged, and when ethics can be extended to include environmental as well as human values, then we can be optimistic about the future of humankind. Accordingly, bringing together these three 'E's' is the ultimate holism and the great challenge for our future." (Eugene Odum," Ecology and our endangered life-support systems", 1993)

"A major clash between economics and ecology derives from the fact that nature is cyclical, whereas our industrial systems are linear. Our businesses take resources, transform them into products plus waste, and sell the products to consumers, who discard more waste […]" (Fritjof Capra, "The Web of Life", 1996)

"Economics emphasizes competition, expansion, and domination; ecology emphasizes cooperation, conservation, and partnership. (Fritjof Capra, "The Web of Life", 1996)

"Ecology, as it is currently practiced, sometimes deals with human impacts on ecosystems, but the more common tendency is to stick to 'natural' systems."(Robert Costanza & Janis King, "The first decade of ecological economics", Ecological Economics 28 (1), 1999)

"There is a strong tendency today to narrow specialization. Because of the exponential growth of information, we can afford (in terms of both economics and time) preparation of specialists in extremely narrow fields, the various branches of science and engineering having their own particular realms. As the knowledge in these fields grows deeper and broader, the individual's field of expertise has necessarily become narrower. One result is that handling information has become more difficult and even ineffective." (Semyon D Savransky, "Engineering of Creativity", 2000)

"The obsession with equilibrium has imposed enormous costs on economics." (Steve Keen, "Debunking Economics - The Naked Emperor Of The Social Sciences", 2001)

"Probably the first clear insight into the deep nature of control […] was that it is not about pulling levers to produce intended and inexorable results. This notion of control applies only to trivial machines. It never applies to a total system that includes any kind of probabilistic element - from the weather, to people; from markets, to the political economy. No: the characteristic of a non-trivial system that is under control, is that despite dealing with variables too many to count, too uncertain to express, and too difficult even to understand, something can be done to generate a predictable goal. Wiener found just the word he wanted in the operation of the long ships of ancient Greece. At sea, the long ships battled with rain, wind and tides - matters in no way predictable. However, if the man operating the rudder kept his eye on a distant lighthouse, he could manipulate the tiller, adjusting continuously in real-time towards the light. This is the function of steersmanship. As far back as Homer, the Greek word for steersman was kubernetes, which transliterates into English as cybernetes." (Stafford Beer, "What is cybernetics?", Kybernetes, 2002)

"The diversity of networks in business and the economy is mindboggling. There are policy networks, ownership networks, collaboration networks, organizational networks, network marketing-you name it. It would be impossible to integrate these diverse interactions into a single all-encompassing web. Yet no matter what organizational level we look at, the same robust and universal laws that govern nature's webs seem to greet us. The challenge is for economic and network research alike to put these laws into practice."  (Albert-László Barabási, "Linked: How Everything Is Connected to Everything Else and What It Means for Business, Science, and Everyday Life", 2002)

"You must know the big ideas in the big disciplines and use them routinely – all of them, not just a few.  Most people are trained in one model – economics, for example – and try to solve all problems in one way. This is a dumb way of handling problems. […] What you need is a latticework of mental models in your head.  And, with that system, things gradually get to fit together in a way that enhances cognition." (Charles T Munger, "Poor Charlie’s Almanack", 2005)

"This new model of development would be based clearly on the goal of sustainable human well-being. It would use measures of progress that clearly acknowledge this goal. It would acknowledge the importance of ecological sustainability, social fairness, and real economic efficiency. Ecological sustainability implies recognizing that natural and social capital are not infinitely substitutable for built and human capital, and that real biophysical limits exist to the expansion of the market economy." (Robert Costanza, "Toward a New Sustainable Economy", 2008)

"Standard economists don't seem to understand exponential growth. Ecological economics recognizes that the economy, like any other subsystem on the planet, cannot grow forever. And if you think of an organism as an analogy, organisms grow for a period and then they stop growing. They can still continue to improve and develop, but without physically growing, because if organisms did that you’d end up with nine-billion-ton hamsters." (Robert Costanza, "What is Ecological economics", 2010)

"The answers to the human problems of ecology are to be found in economy. And the answers to the problems of economy are to be found in culture and character. To fail to see this is to go on dividing the world falsely between guilty producers and innocent consumers." (Wendell Berry, "What Are People For?: Essays", 2010)

"Economists don't seem to have noticed that the economy sits entirely within the ecology." (Carl Safina, "The View from Lazy Point: A Natural Year in an Unnatural World", 2011)

"Economists should study financial markets as they actually operate, not as they assume them to operate—observing the way in which information is actually processed, observing the serial correlations, bonanzas, and sudden stops, not assuming these away as noise around the edges of efficient and rational markets." (Adair Turner, "Economics after the Crisis: Objectives and means", 2012)

"A self–organizing system acts autonomously, as if the interconnecting components had a single mind. And as these components spontaneously march to the beat of their own drummer, they organize, adapt, and evolve toward a greater complexity than one would ever expect by just looking at the parts by themselves." (Lawrence K Samuels, "Defense of Chaos: The Chaology of Politics, Economics and Human Action", 2013)

"Complex systems defy intuitive solutions. Even a third-order, linear differential equation is unsolvable by inspection. Yet, important situations in management, economics, medicine, and social behavior usually lose reality if simplified to less than fifth-order nonlinear dynamic systems. Attempts to deal with nonlinear dynamic systems using ordinary processes of description and debate lead to internal inconsistencies. Underlying assumptions may have been left unclear and contradictory, and mental models are often logically incomplete. Resulting behavior is likely to be contrary to that implied by the assumptions being made about' underlying system structure and governing policies." (Jay W Forrester, "Modeling for What Purpose?", The Systems Thinker Vol. 24 (2), 2013)

"In an information economy, entrepreneurs master the science of information in order to overcome the laws of the purely physical sciences. They can succeed because of the surprising power of the laws of information, which are conducive to human creativity. The central concept of information theory is a measure of freedom of choice. The principle of matter, on the other hand, is not liberty but limitation - it has weight and occupies space." (George Gilder, "Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing our World", 2013)