By Gerd Hardack, Dieter Karras, Ben Fine
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Extra resources for A Short History of Socialist Economic Thought
33 Former Federal Reserve Chairman Ben Bernanke weighed in on the debate over future productivity growth in a commencement address he gave at Bard College in May 2013, siding with the optimists. 34 The story of civilization is one of continued innovation, at least since the Industrial Revolution, and why should that story change? S. economy and elsewhere surely will continue as long as there is human activity. The outcomes matter, for a number of reasons. First, as noted earlier, how fast the economy grows determines the rate of improvement in average living standards (admittedly putting aside that pesky issue of distribution).
In each case, economists helped 22 Trillion Dollar Economists business discover ways to generalize the auction so it is capable of being used routinely, while they have also persuaded policy makers to use the device for allocating scarce publicly owned goods, such as the electromagnetic spectrum that has enabled the incredibly rapid growth of wireless telecommunications. More broadly, in many cases what appears to be scarce can be made less so through the signaling function of prices. High prices attract investment that expands capacity and entrepreneurs who invent or discover cheaper ways to provide the scarce resource or commodity.
The development of the field has many intellectual fathers, but one of the most influential is not even an economist at all, but rather a psychologist, Daniel Kahneman. 9 Prices, in turn, are really important in any economy—even in the former 20 Trillion Dollar Economists communist countries—as key signals to guide the behavior of producers and consumers. Hold that thought, however, until I quickly define the term market. Actually, there are multiple kinds of markets, and each tends to be suitable for different kinds of goods and services.