Friday, September 22, 2017

Timeless words of Wisdom

I don't care who writes a nation's laws, or crafts its advanced treaties, if I can write its economics textbooks.
                            -- Paul A. Samuelson, the "father of modern economics."


1 comment:

  1. I can understand why Paul A. Samuelson made his statement. Economic textbooks have a profound impact on what students learn and think about processes of how we arrive at business decisions. The students who become economists have an impact on the economy and future of the nation. The federal government relies on economists to predict the growth and decline of trade and the economy that includes wage and unemployment data and price inflation.

    In June 2017, the Organisation for Economic Cooperation and Development stated, “With inflation nearing its target and unemployment edging down further, monetary policy stimulus has begun to be withdrawn gradually. As growth picks up, further interest rate rises are projected to contain inflationary pressures and reduce the risk of financial-market distortions. Reducing the size of the central bank’s balance sheet will soon become appropriate. The Administration and Congress are formulating plans to cut taxes and boost infrastructure spending. The present projection assumes no spending increase at the federal level, but a tax reform is projected, which will support consumer spending and investment in 2018.” The economists drive the decisions made about economic policy, trade and banking. They arrive at the decisions discussed by Froeb et. all describe in Chapter 4 of Managerial Economics: A Problem Solving Approach, the decisions as to how much and marginal analysis in order to keep the economy growing.

    The U.S. Bureau of Economic Analysis watches the economy and produces the statistics needed to determine a true picture of the U.S. economy. For instance the Gross Domestic Product (GDP) improved from the 1st quarter 1.2 percent to 3.1 percent at the end of the 2nd quarter. Many other economic indicators are tracked to help the government keep the economy stable.

    All the information gathered by economists started with the first economists, like Paul A. Samuelson, who believed that economic textbooks were as important as laws and treaties. I believe there is truth in his words.


    Bureau of Economic Analysis: U.S. Department of Commerce. (2017). U.S. Economy at a glance: Perspective from the BEA Accounts. Retrieved on October9, 2017 from

    Froeb, L. M., Shor, M., McCann, B. T. and Ward, M. (2016). Managerial economics: A problem solving approach. (4th ed.). Boston: Cengage Learning.

    Organisation for Economic Cooperation and Development-OECD. (2017, June). United States - Economic forecast summary. (June 2017). Retrieved on October 9, 2017 from