Current Econ Icons: Our 2017 Nobel Laureate Picks

It’s that time of the year again! Sure, the leaves start falling and we bring out the winter clothes, but what we really care about is the annual Nobel Prize award. Winning the Nobel Prize is like leveling up to Chuck Norris status; only the best in the field win. Very few achieve this status and as seen from our weekly Bygone Econ Icon, the contributions from the winners of the prize in economics are huge. Though there are a number of qualified economists in the field today, here are our picks of who will likely receive the prize on October 9th. Continue reading “Current Econ Icons: Our 2017 Nobel Laureate Picks”

Using Innovism Instead of Capitalism

McCloskey’s suggestion for changing the term “capitalism” into “innovism” might be a more practical way of arguing for free markets. Capitalism, as it’s tossed around in conversation, ends up getting misconstrued by both sides of the argument, because it lends itself to assume that societies have only become rich through the accumulation of capital. However, this is simply not true. It is ideas and the ability for entrepreneurs to assume the risks of employing the factors of production, by means of prices set in a market, to produce new (and perceived better) products or services to then turn around and sell them at uncertain prices in the market. The z, not the k, in our Solow model, if you will. This is “trade-tested betterment” as also proposed by McCloskey. Continue reading “Using Innovism Instead of Capitalism”