A discussion of chapter 4 “As Your Own Life Shows” In the previous chapters, McCloskey has shown that before the Great Enrichment began over 200 years ago, all of mankind everywhere lived a subsistence lifestyle. Historically, Poor was Normal It was only after industrialization that technology grew at a sustained rate…
Tag: Macroeconomics
Bourgeois Equality
Capitalism and the Hockey Stick
A Discussion of Bourgeois Equality Chapter 3 “Then Many of Us Shot Up the Blade of a Hockey Stick” After establishing the last chapter that industrialization led to technological change growing output faster than population for the first time in human history, we return to the idea of the Great…
Bourgeois Equality
Are You a Malthusian?
A Discussion of Bourgeois Equality Chapter 2 “For Malthusian and Other Reasons, Very Poor” We established in the previous chapter that historically, people lived on a subsistence level averaging $3 a day for most of human history. Historically, Poor was Normal Now McCloskey wants to explore why and is starting with…
Bourgeois Equality
Historically, Poor was Normal
A Discussion of Bourgeois Equality Chapter 1 “The World is Pretty Rich, But Once was Poor” In my teaching and research, I keep coming back to the question of why an economy grows, with the hope of that knowledge helping those that don’t. Can Ancient Greece Help Developing Economies? Why Countries…
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,…
Macroeconomics
Have We Found the Money Tree?
A discussion of “A Skeptic’s Guide to Modern Monetary Theory” A sexy new economic theory appeared in the last few years promising us that government debt really is nothing to worry about. Modern Monetary Theory (MMT) says a nation that spends, taxes and borrows in a fiat currency they control…
Macroeconomics
Consumer Reaction to the Pandemic Shutdown Shock
A Discussion “Initial Impacts of the Pandemic on Consumer Behavior” Here is an early look at the impact on consumers’ income, spending and savings behavior from the dreadful economic shock of the coronavirus pandemic and shutdown. As an economist, I never would have said it was possible to shut down…
Macroeconomics
Why Countries Rich with Resources can be so Poor and How to Prevent It
A Discussion of “Does Information Break the Political Resource Curse? Experimental Evidence from Mozambique” It seems logical that a country with no resources would be poor, so it seems puzzling when a country rich in resources is poor. However, Armand, Coutts, et al. (2020) note the Resource Curse, defined as…
Macroeconomics
More Robots Mean More Riots?
A Discussion of “Rage Against the Machines: Labor-Saving Technology and Unrest in Industrializing England” “Machines are going to take all the jobs,” is a sentiment I hear and read often. As an economist, I know this is not true. There will be disruption. Some jobs will be lost. Some jobs…
Macroeconomics
Do Economists Go Too Far Arguing for Free Trade?
A Discussion of “Deconstructing the Argument for Free Trade” “If all the economists were laid end to end, they still would not reach a conclusion.” “What happens when you get 10 economists in a room? You get 11 opinions.” Or the old story of President Truman wishing for a one-armed…