Even if the constants which economists wish to determine…
“Even if the constants which economists wish to determine were less numerous, and the method of experiment more accessible, we should still be faced with the fact that the constants themselves are different at different times. The gravitation constant is the same always. But the economic constants-these elasticities of demand and supply-depending, as they do, upon human consciousness, are liable to vary. The constitution of the atom, as it were, and not merely its position, changes under the influence of environment.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Economic constants like elasticities change with human consciousness, unlike physical constants, highlighting the fluid nature of economic variables.
In simple terms: Economic variables shift with human behavior, unlike fixed physical laws.
Key Takeaway
Account for human factors when modeling economies.
Themes
economics
human behavior
variables
uncertainty
theory
Mood
thoughtful
inquisitive
Type
theoretical
analytical
When to use this quote
- policy design
- academic research
- market forecasting
- behavioral economics
- theoretical analysis
Key Concepts
elasticity
economic modeling
human consciousness
environmental influence
Questions to Reflect On
- What methods can capture changing economic elasticities?
- How do we reconcile physical constancy with economic variability?
A Different Perspective
Economic models may be unstable due to shifting human factors.