Tuesday, December 30, 2003

Paul Samuelson

David Warsh has a nice appreciation of Paul Samuelson at Economic Principals

Our Marshall

But there can't be much doubt that scientific economics in the second half of the 20th century belonged to Samuelson and Cambridge, Massachusetts, much as most of the first half belonged to [Alfred] Marshall and Cambridge, England.

It is hard to argue with that. Foundations of Economic Analysis revolutionized how economists wrote for each other and his textbook Economics was a best-seller for decades. However, elegant mathematics is no substitute for empirical validity and Samuelson often failed in this area.

Economics defended Soviet economic performance right up to the fall of the regime. Samuelson's economic analysis failed to discern the complete bankruptcy of central planning. That's a pretty big blind spot.

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