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…
Tag: Economic Thought
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…
Microeconomics
Superstar Firms Causing Concentration of Market Power
A Discussion of “Concentrating on the Fall of the Labor Share” For much of the 20th century, economists marveled at the stability of labor’s share of national income. Labor’s share of national income is the total dollar amount paid out in wages, salaries, and benefits as a percentage of GDP,…
Microeconomics
Income Contingent Loans: Fixing the College Debt Crisis
A Discussion of “Financing Higher Education in an Imperfect World” Pssstt! I got a secret. College debt is soaring. OK, not really a secret. Search Medium and you can find article after article decrying the situation. But what can we do to fix it? That is what Long (2019) is…
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…
Economic Thought
Where Economists Should Fear to Tread
A Discussion of “The Political Limits of Economics” We are living in a time when experts and their recommendations are ruling over us. Our politically elected officials are deferring to their guidance — is that how it should be in our democratic republic? Given the time it takes to publish, I doubt…