At the simplest level, economics can better show us the consequences of our actions. Less simple are cases in which we don't have the knowledge to predict the full consequences. Global warming and climate change are examples.
Edmund PhelpsRead
Entrepreneurs have only the murkiest picture of the future in which they are making their bets, and also there is ambiguity: they don't know when they push this lever or that lever that the outcome is going to be what they think it is going to be - there is the law of unanticipated consequences.
Interpretation
What this quote means
Entrepreneurs face uncertainty in their decisions, often leading to unpredictable outcomes.
The quote by Edmund Phelps highlights the inherent uncertainty that entrepreneurs encounter while making decisions about the future. It suggests that despite their efforts to predict outcomes by making strategic choices, they are often confronted with unexpected results due to factors beyond their control, illustrating the complexity and unpredictability of entrepreneurship.
Themes
EntrepreneurshipUncertaintyDecision-MakingRiskConsequences
In practice
Example use cases
This quote can be used in a motivational speech for aspiring entrepreneurs.
More from Edmund Phelps
All quotes →If every effect of any new products or methods were required to be known before they could be produced and marketed, they would not be true innovations - and thus not represent new knowledge of what people would like, if offered.
Edmund PhelpsRead
The good life, as it is popularly conceived, typically involves acquiring mastery in one's work, thus gaining for oneself better terms - or means to rewards, whether material, like wealth, or nonmaterial - an experience we may call 'prospering.'
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The epic story of the West is the development in the 19th century of a mass prosperity the world had never seen and its near-disappearance in one nation after another in the 20th.
Edmund PhelpsRead
When the word 'morality' comes up in connection with economics, income distribution and financial stability are usually the issues. Is it moral for rich countries to use such a high proportion of the world's resources or for investment bankers to earn large bonuses?
Edmund PhelpsRead
A nation's economy is more than its markets, tastes, technologies and property rights.
Edmund PhelpsRead
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