Summary: The Nobel Prize in Economics often rewards influential ideas rather than solid empirical evidence, making it feel like a popularity contest. This year’s prize went to Daron Acemoglu for his research on the role of institutions in economic development, but the evidence for this theory is not conclusive. While it’s important to explore big questions in economics, not every interesting idea deserves a Nobel Prize.
Long-time readers will know that I don’t think much of Nobel Prizes in general. They elevate individual contributions way too much, when most big discoveries are big group efforts and/or series of small incremental additions. This creates a “cult of genius” that doesn’t reflect how science really works, and creates too large of a status distinction between prizewinners and others. (View Highlight)
I believe that average people have enormous economic and political potential that is usually under-exploited, and I’m constantly annoyed by elitists who think society is driven by a few geniuses. (View Highlight)
companies that rely heavily on cheap labor often fail to innovate. (View Highlight)