Growing up in the Great Depression highlighted the significance of economic security, as families faced uncertainty about their next income. This experience emphasized the value of stable and secure jobs over higher pay. The focus on economic security influenced a reluctance to accept labor market efficiency theories that introduce uncertainty to workers. This insight underscores the vital importance individuals place on feeling safe and secure in their economic situation, a factor not always clearly accounted for in standard economic teachings.
Robert Solow is 98 years old and a giant among economists. He tells Steve about cracking German codes in World War II, why it’s so hard to reduce inequality, and how his field lost its way.