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John Kay

Quote of the Week: John Kay

Sina Odugbemi's picture

"Public  opinion, well briefed and properly marshalled, is a decisive force in public policy. But since there are many issues in public debate, attention to any one is necessarily transient. The attention of vested interests to their own concerns, however, is permanent."

-- John Kay, Don’t listen to the lobbyists: they never go away, Financial Times, September 21, 2011

Leaders Who Ignore Public Opinion Lose Their Offices

Anne-Katrin Arnold's picture

"Leaders who pander to public opinion lose respect" - an interesting headline we found in last Wednesday's Financial Times, opening a comment by Economist and columnist John Kay. Kay makes two common mistakes in his article: First, he confuses public opinion with the popularity of an individual. Second, he underestimates the role of public opinion for legitimizing government.

"Out of the crooked timber..."

Sina Odugbemi's picture

There is a global debate going on concerning why the global financial crisis erupted. The technical debate is what it is; so far there is far more heat than light. But in addition to the technical debate is a debate about how certain underlying assumptions about human nature entertained by economists and even famous central bankers have turned out to be incorrect. It turns out that human beings - as consumers, investors, bankers, stock traders - have not behaved in precisely the ways "rigorous" economic theories predicted that they would. Even Alan Greenspan, former Chairman of the Federal Reserve, showed his surprise at human nature at a congressional hearing late last year: "I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms."