"Econ 102" with Noah Smith and Erik Torenberg

Why Nations Fail, AI & Jobs, Economics as a Science

32 snips
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.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Economics Nobel vs. Science Nobels

  • In economics, Nobel Prizes were awarded for influential ideas, not always empirically sound ones.
  • This contrasts with science Nobels, where empirical validation is crucial.
ANECDOTE

Real Business Cycle Theory

  • The 2004 Economics Nobel went to Real Business Cycle Theory (RBC), which attributes economic fluctuations to innovation rates.
  • RBC suggests that mass unemployment arises from slower innovation, prompting people to take voluntary vacations.
INSIGHT

Shift to Empirical Economics

  • Computerization shifted economics towards empirical studies, revealing contradictions with existing theories.
  • The easier use of regressions led to more data-driven work, challenging established theoretical frameworks.
Get the Snipd Podcast app to discover more snips from this episode
Get the app