How do you become a good economist?

Answer 1:  Take as many math and statistics courses as you can stomach.

More answers on the blog next week!!

Good Quote

Good questions outrank easy answers.

                             -  Paul A. Samuelson

Mathematics ... he said

It has been said that any student who has studied economics has read Paul Samuelson's book "Economics - An introductory Analysis" at least once.

Samuelson aimed to bring clarity to economics. He knew that simple plain writing was essential to explain things to the public. But he also wanted to resolve debates which were made obscure by jargon. 

Towards this end he used mathematics to describe theories and work out their implications by solving equations.

The situation today is that difficult mathematics can obscure economics for the uninitiated!!

Good Quote

“The ideas of economists and political philosophers, both when they are right and when they are wrong are more powerful than is commonly understood. 

Indeed, the world is ruled by little else. 

Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist.”
― John Maynard Keynes

American Government Shutdown

The foreign economic press has been rife with articles on the American Government Shutdown.

there are points and counterpoints being presented on the impact on the American economy and on the lives of ordinary American citizens; and even American missions abroad.

Some in the government dismiss the adverse impact of the government shutdown on real American GDP. Harvard economist Mankiw feels that opinion is more wrong than right. This is because if one states that there is no adverse impact of the government shutdown one is making an assumption that the  government workers don't produce anything of value when they are at work, or that they will make up all the undone work when they return, so making them stay at home has no significant economic impact. If that were really the case, then they should be given shorter work weeks, so they can enjoy more leisure.

Also take the case of the national parks that are now closed because of the shutdown. Those families that would otherwise be enjoying them are suffering a true reduction in economic well-being that is forever lost.

Point of view and facts - Convergence ... he said

The American economist Robert Solow developed the neo-classical theory of economic growth. Solow won the Nobel Prize in Economics in 1987. 

The Solow Neo-classical Growth Model features the idea of catch-up growth when a poorer country is catching up with a richer country – often because a higher marginal rate of return on invested capital in faster-growing countries.

It is said that developing countries find it easier to get rich once their neighbour/s already are. The same pattern can often be seen in the developed world. Not just between countries but within countries as well.

But that is not the case in India. The states are becoming even more unequal. 

This has been a puzzle to economists.

One theory blames it on poor infrastructure, another on India's skill intensive IT sector, and a third on poor governance.

As long as the divergence does not become more serious and forces of convergence gain strength in other socio-economic spheres all will be better off.

Good Quote

“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.”
― Murray N. Rothbard

Point of View - Growth or Environment

Our environment is vital to economic growth. 

Ancient civilizations were built on fertile soil, clean water and unpolluted natural resources. 

Current civilizations are facing the prospect of an environment being denuded of its value and valuable resources. 

Every so often we read about some creature becoming extinct. 

It seems to be of scant value to us; but it is part of the eco-system and somewhere down the line the earth is worse off for that. 

Air pollution and plastic waste are there for all to see and experience the ill effects. 

Human activities are destroying the future of human beings and other creatures on earth. 

We have always prioritised the economy. but it is crucial to realise that without the environment our economies will also be destroyed.

We cannot think of this issue in terms of a trade off between economic growth and the environment. we need both. 

So the question that every body is asking is how do we do both?

Interesting Fact- India Will Overtake the US Economy by 2030

India is likely to become the world’s second-largest economy by 2030, next only to China and overtaking the US, according to Standard Chartered Bank's long-term forecast released on January 08 2019.

Artificial Intelligence Anyone?

Advances in artificial intelligence have triggered worries about human obsolescence. 

On the other hand, watching a machine invent new ways to tackle a problem can actually push people to think out of the box; for example, when Gary Kasparov lost a match to Deep Blue an IBM computer! 

AI encourages humans to question old wisdom and experiment.

Happy New Year 2019

Here's wishing all my readers a wonderful new year. And on this blog here's to more snippets, snapshots and passing thoughts :)