The Economics Show What’s wrong with economics? With Angus Deaton
Jul 8, 2024
Nobel Prize-winning economist Angus Deaton rethinks assumptions in economics, discussing critiques of the profession, immigration impacts, and globalization's role in poverty reduction. He challenges traditional views on poverty measurement, international aid efficacy, and randomized control trials. Reflecting on biases in econometric techniques, Deaton emphasizes the need for economists to broaden their education and consider marginalized groups' welfare.
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Economics' Narrow Focus
- Economics has narrowed, focusing on GDP and efficiency.
- This shift has led to neglecting ethics, history, and other important aspects.
Immigration's Long-Term Impacts
- Economists might overestimate immigration benefits, focusing on short-term wage effects.
- Long-term impacts, like potential inequality increases, might be missed.
Immigration and Inequality
- Inequality in the U.S. mirrors the fraction of foreign-born residents historically.
- This correlation, while not proof, suggests a link between immigration and inequality.