Accounts Quote by Ronald Coase
“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.”
About This Quote
Source Book: “The Nature of the Firm” (or related economic essay), 1937
Economic and psychological factors, amplified by political structures, heavily influence policy, often outweighing rational analysis.
In simple terms: Economics, bias, and politics shape policy more than pure reason.
Key Takeaway
Address hidden influences when crafting policy.
Themes
economics
politics
psychology
policy making
ignorance
Mood
analytical
inquisitive
Type
theoretical
strategic
When to use this quote
- legislative drafting
- public campaigns
- educational reform
- political lobbying
Key Concepts
institutional bias
public choice theory
information asymmetry
Questions to Reflect On
- How can policymakers detect hidden biases?
- What mechanisms reduce political distortion?
A Different Perspective
Ignoring these forces can lead to ineffective policies.
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![“I can't remember one [example of regulation] that's good. Regulation of transport, regulation of agriculture - agriculture is a, zoning is z. You know, you go from a to z, they are all bad. There were so many studies, and the result was quite universal: The effects were bad.” quote by Ronald Coase](https://sms4smile.com/quotes/img-quotes/02e/ronald-coase-17623_agriculture_i-can-t-remember-one-example-of-regulati_654706.jpg)
![“I can't remember [of a good regulation]. Regulation of transport, regulation of agriculture — agriculture is a, zoning is z. You know, you go from a to z, they are all bad. There were so many studies, and the result was quite universal: The effects were bad” quote by Ronald Coase](https://sms4smile.com/quotes/img-quotes/03a/ronald-coase-17623_agriculture_i-can-t-remember-of-a-good-regulation-re_974279.jpg)
