A Discussion of “Morality and Spirituality: The missing link for economic development in the 21st century”. Economists postulate that it takes good institutions (laws, regulations, morality, customs) to create the incentives needed to organize your factors of production (capital, labor, etc.) to produce a growing output (GDP per capita). Can…
Category: Economic Thought
Economic Thought
Can Ancient Greece Help Developing Economies?
A Discussion of “Morality, Institutions and the Wealth of Nations: Some Lessons from ancient Greece” When I teach macroeconomics, I know one question the students have is, “Why can’t we use all this economic knowledge to help poor countries grow?” And the answer is, we can, to a point. But,…
Economic Thought
It Was Never Only About Profits
A Discussion “The Social Responsibility of Business: Milton Friedman Reconsidered” As an economics professor, I know I have some misconceptions to overcome every semester a new crop of students appear in my intro microeconomics course. Economics is about greed. It is immoral. Capitalism is bad. Elrick and Thies (2018) offer…
Economic Thought
Capitalism: Value, People, and Planet
A discussion of “Revisiting the Purpose of Business” I am an economist and a lot of what drew me to the field early on is the Adam Smith story of the Invisible Hand. Briefly, it is the idea that our self-interested nature is channeled, as if by an all-knowing Invisible…
Economic Thought
Our Future Growth Depends on Who Wins the Culture Wars
A Discussion of “Which Dimensions of Culture Matter for Long-Run Growth?” For the past few semesters, I have been using Barry Clark’s “The Evolution of Economic Systems” in my MBA global economy classes. I like how it is comparing economic systems across countries, not just economies. An economic system consists of…
Economic Thought
Populism: Its Economic Consequences
A Discussion of “Studying the (Economic) Consequences of Populism” US President Donald Trump. Marine Le Pen, head of the National Rally party in France. Hugo Chavez, late president of Venezuela. Pablo Iglesias of the Podemos party of Spain. They probably would not agree on much but they do have one…
Economic Thought
Can Economics Illuminate the Populist Movement?
A Discussion of “A Dialogue between a Populist and an Economist” In an unusually playful academic article, Boeri, Mishra, et al. (2018) write a script of two people, Populist and Economist, arguing over the success (or failure) of economics in explaining the latest wave of populism fever that has spread…
Economic Thought
A Spoonful of Populism is the Medicine We Need
A Discussion of “Is Populism Necessarily Bad Economics?” Populism is on the rise. Is that good? Is that bad? What is it anyway? Dani Rodrik (2018) has written a thoughtful article that helps us define what it is and when it can be a force for good. First, he states…
Economic Thought
Communism, Attitudes, and Political Sustainability
A Discussion of “The Long-Term Effects of Communism in Eastern Europe” Communism ended in Eastern Europe over three decades ago, but does that mean the market system that took its place is secure? What impact do the cultural and economic attitudes of the people have on the sustainability of the market…
Economic Thought
Sports, Religion, Communism, and Capitalism
A Discussion of “Emotional Tagging and Belief Formation: The Long-Lasting Effects of Experiencing Communism” Have you ever shared a dramatic experience with other people but each of you have a very different reaction? Each seems to draw their own conclusion, learn different lessons, store different memories. That’s similar to what…