"Econ 102" with Noah Smith and Erik Torenberg
Why Nations Fail, AI & Jobs, Economics as a Science
Oct 17, 2024
The podcast dives into the evolving nature of economics, highlighting its shift from natural science to cultural significance. It discusses the critical role of institutions in national success or failure, using Korea as a key example. Technology's double-edged sword is examined, revealing both job creation and displacement. The hosts critically analyze AI's impact on employment, contrasting historical perspectives that show tech can create opportunities. Finally, they debate the balance between prominent economic theories and the value of empirical research.
47:30
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Quick takeaways
- The Nobel Prize in Economics is increasingly recognizing 'big think' theories over empirical research, raising concerns about practical validation.
- Daron Asimoglu argues that inclusive institutions foster economic growth, yet skeptics highlight the lack of empirical evidence supporting his claims.
Deep dives
Shift in Economic Theory Recognition
The recent Nobel Prize in Economics signifies a shift in how the field recognizes contributions. Historically, the prize often went to influential theorists whose work might not have empirical validation, unlike in fields such as physics or chemistry where verifiable discoveries are crucial. This reflects a trend toward valuing theory over practical application, where many deserving contributions in applied economics might have been overlooked. The changing landscape suggests an increasing emphasis on cultural influence rather than concrete, data-driven findings, leading to debates about the relevance and reliability of theoretical work in economics.
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