[HN Gopher] Sveriges Riksbank Prize in Economic Sciences in Memo...
       ___________________________________________________________________
        
       Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred
       Nobel 2024
        
       Author : hdvr
       Score  : 88 points
       Date   : 2024-10-14 10:18 UTC (1 days ago)
        
 (HTM) web link (www.nobelprize.org)
 (TXT) w3m dump (www.nobelprize.org)
        
       | EugeneG wrote:
       | Which is why the pro-Trump tech folks are playing with fire.
       | Exchanging potentially faster approvals/lower regulation for
       | favored projects, for an environment where rule of law and
       | institutions are weakened.
        
         | pavlov wrote:
         | The pro-Trump tech folks are 90% about crypto. It's single-
         | issue politics, like abortion or gun rights.
         | 
         | Scratch the surface on a SV Trump supporter like Marc
         | Andreessen, and you'll find a big bag of crypto that they want
         | to keep dumping on retail investors.
        
           | lokar wrote:
           | It's not really about crypto. It just self interest.
        
           | superidiot1932 wrote:
           | Which crypto Bill Ackman is trying to dump on retail?
        
             | lern_too_spel wrote:
             | Ackman is not a tech folk.
        
         | lokar wrote:
         | The slow and messy process of reaching consensus (or close) via
         | a complex web of institutions help "western" (in the sense that
         | Kotkin uses) societies avoid really bad policy and adapt to
         | mistakes.
         | 
         | Some people are frustrated by this and think it would be much
         | better to substitute their judgment for this process. They
         | don't necessarily hold this view selfishly or maliciously, they
         | are just short sighted.
        
           | AnimalMuppet wrote:
           | Yes. _Their_ judgment. Everyone else gets to shut up and take
           | it. It 's a very selfish view, whether or not they are
           | consciously selfish about it.
        
             | lokar wrote:
             | I guess I agree. I tend to try to view others actions in
             | best reasonable light, so I default to the idea that they
             | are simply blind to their own limits, but mean well.
        
               | AnimalMuppet wrote:
               | I guess I'd better assume the best about such people,
               | given how easy it is for me to have the same attitude...
        
         | whimsicalism wrote:
         | More rules doesn't mean stronger rule of law.
         | 
         | Having lots of weakly enforced or discretionary laws is net
         | worse for rule of law and a stable non-corrupt society.
        
           | renewiltord wrote:
           | More law, better regulation comes from the same school as
           | more code, better product. It's obviously bullshit but novice
           | practitioners and non-practitioners support the idea because
           | they think all problems are solvable with more something.
        
           | jhp123 wrote:
           | you've misread the comment, weakened rule of law and lesser
           | regulations are two different things that (according to the
           | comment) are being exchanged. For example firing Comey had
           | nothing to do with regulations.
        
       | hhs wrote:
       | If interested, this page has context:
       | https://www.nobelprize.org/prizes/economic-sciences/2024/pop...
        
       | cjalmeida wrote:
       | I strongly recommend Acemoglu, Robinson classic book "Why Nations
       | Fail"
       | 
       | https://www.amazon.com/Why-Nations-Fail-Origins-Prosperity/d...
       | 
       | It's very accessible, no economics background required. Along
       | with Krugman and Kahneman, one of the few economics scholars that
       | take the time to write a book for layman.
        
         | alephnerd wrote:
         | I also recommend Acemolgu's recent book "Power and Progress" on
         | the relationship between labor and technology [0].
         | 
         | If you don't like reading, Acemoglu gave a talk about it at HKS
         | recently [1]
         | 
         | [0] - https://ig.ft.com/sites/business-book-
         | award/books/2023/longl...
         | 
         | [1] - https://www.youtube.com/watch?v=WT0NzlATjf0
        
         | js8 wrote:
         | I read the summary from the review and I am not convinced that
         | neoliberal US and EU have a less extractive governance
         | structure than China has, as the authors seem to claim. It's
         | been a decade since the book was published and China is still
         | going strong. We will see.
        
           | dash2 wrote:
           | China has become more and more authoritarian under Xi, its
           | GDP growth stats may be dodgy, and recently its housing
           | bubble has popped big-style. It could go the way of Japan. I
           | agree with your last sentence, all the same.
        
             | MichaelZuo wrote:
             | How do you know this?
             | 
             | I don't want to single this out but tangible proof of a net
             | increase in 'authoritarian' decision making, compared to
             | say a decade ago, has never been posted on HN, as far as I
             | know.
             | 
             | Most of the in depth analysis I've seen suggests that
             | although enforcement actions have become stricter over the
             | past decade, the actual number of new laws and regulations
             | has gone down.
             | 
             | And more importantly, the number of contradictory laws and
             | regulations (between central authorities, and between the
             | centre and provinces) has gone way way down.
             | 
             | So there's much less leeway to punish on a whim or trap
             | someone in a double bind, compared to a decade ago. Which
             | suggests a net decrease, if anything.
        
               | vlovich123 wrote:
               | It depends on if you're talking about authoritarianism as
               | it relates to the average person or the political and
               | ruling class. There have been a lot of reports of Xi
               | getting rid of a lot of potential adversaries when he
               | announced himself ruler for life and the imprisonment of
               | Jack Ma and stripping him of his wealth for making
               | challenging statements against Xi seems pretty
               | authoritarian.
        
               | MichaelZuo wrote:
               | Does it makes sense to discuss it relative to the
               | 'political and ruling class'?
               | 
               | Since they pretty much all have party cards already. And
               | the moment they give it up means they're kicked out from
               | any decision making, from what I understand.
               | 
               | Yes internal factions within the party can arbitrarily
               | punish each other for made up reasons all day long, every
               | day of the year.
               | 
               | So in a sense it was already authoritarian without limit.
               | 
               | But that's not new, nor different from any other big
               | political party.
        
               | vlovich123 wrote:
               | The kind of punishment authoritarian regimes dish out is
               | much more severe in ways that you couldn't do in the US
               | (imprisonment, seizure of assets, death). In fact I'd
               | argue it's the only kind that matters. Authoritarian
               | regimes rarely go after normal people unless they speak
               | out actively against the government (which China does)
               | and instead focus on controlling and censoring anyone in
               | a position of power and let the implicit censoring of the
               | entire population flow downstream from that.
        
               | MichaelZuo wrote:
               | If the party membership is revoked first, then the person
               | wouldn't be part of the 'political and ruling class' any
               | longer.
               | 
               | Then they would just be a citizen who might formerly have
               | been some bigshot, i.e. the second case.
               | 
               | It still doesn't seem to make sense to discuss any
               | increases relative to the first case, since in 2012 it
               | was already unlimitedly authoritarian.
        
               | vlovich123 wrote:
               | Revoking party membership doesn't mean much necessarily
               | if you still wield influence and power. Imagine if Barack
               | Obama or Bill Clinton were kicked out by Joe Biden trying
               | to consolidate power. They'd still have a voice and be
               | influential outside of their party membership. That's why
               | Xi needs to imprison his rivals and root them out beyond
               | just revoking their membership. And again I'll point you
               | to the example made of Jack Ma who wasn't in the
               | political party except maybe nominally but had wealth. I
               | think you've never lived under an authoritarian regime
               | and never talked with people who lived under it to
               | understand what life is like.
        
               | MichaelZuo wrote:
               | This is getting too into the weeds, of course individual
               | situations can be analyzed, but this doesn't apply to
               | 'the political and ruling class' as a whole.
               | 
               | To be more precise in wording, the net increase, or
               | decrease, in net negative authoritarian decision making
               | is what matters for me and probably most HN readers.
               | 
               | Since this increase, or decrease, may be positive and
               | negative to varying degrees for various people and
               | factions, it's practically impossible to tell if it's net
               | negative for the class as a whole.
        
               | cherryteastain wrote:
               | US does all the nasty crap China does. Less brazenly, but
               | it's certainly there.
               | 
               | > imprisonment
               | 
               | https://en.m.wikipedia.org/wiki/Guantanamo_Bay_detention_
               | cam...
               | 
               | The Guantanamo Bay detention camp is a United States
               | military prison...As of August 2024, at least 780 persons
               | from 48 countries have been detained at the camp since
               | its creation, of whom 740 had been transferred elsewhere,
               | 9 died in custody, and 30 remain; only 16 detainees have
               | ever been charged by the U.S. with criminal offenses.
               | 
               | > seizure of assets
               | 
               | https://en.m.wikipedia.org/wiki/Civil_forfeiture_in_the_U
               | nit...
               | 
               | In the United States, civil forfeiture (also called civil
               | asset forfeiture or civil judicial forfeiture)[1] is a
               | process in which law enforcement officers take assets
               | from people who are suspected of involvement with crime
               | or illegal activity without necessarily charging the
               | owners with wrongdoing...To get back the seized property,
               | owners must prove it was not involved in criminal
               | activity.
               | 
               | > death
               | 
               | https://en.m.wikipedia.org/wiki/Capital_punishment_in_the
               | _Un...
               | 
               | > go after normal people unless they speak out actively
               | against the government
               | 
               | https://en.m.wikipedia.org/wiki/Julian_Assange
        
               | blackhawkC17 wrote:
               | There should be a word for when someone picks the most
               | extreme situation to prove their point.
               | 
               | Yes, the U.S., Europe, and all well-governed democracies
               | aren't perfect, but they're much better than China in
               | that regard.
               | 
               | A litmus test: U.S. and European citizens are free to
               | challenge their leaders, e.g., the recent glut of anti-
               | establishment parties garnering more votes in the EU.
               | Some of these guys are loons, yet they're free to
               | challenge the status quo because that's part of
               | democracy.
               | 
               | Remind me where Xi Jinping and Putin's political
               | opponents end up again? In jail or dead.
        
               | inglor_cz wrote:
               | The difference between oligarchy that deliberately
               | maintains balance of power and interests between, say,
               | dozens or hundreds of prominent players, and a one-man
               | rule where the "courtiers" are just richer than an
               | average citizen, but equally subjugated to the Dear
               | Leader, is enormous.
               | 
               | Both Russia and China developed since 2000 from one to
               | the other, and I wonder what the end game will be. In
               | Russian case, the development led to re-establishment of
               | the imperial idea and an attempt to conquer formerly held
               | lands by force; that is something that the oligarchs
               | wouldn't start, but a neo-Tsar absolutely did.
               | 
               | Communist China used to be way less externally aggressive
               | than Russia / USSR, but I don't like the current military
               | gestures by Xi. Not at all.
        
               | MichaelZuo wrote:
               | So the degree of authoritarian decision making felt by
               | 'courtiers' within the party can vary from year to year?
               | 
               | I guess that is possible, but if that's the case,
               | wouldn't that naturally be their goal? To concentrate
               | power and authority in one place, or person, that they
               | can more readily manipulate.
        
             | feedforward wrote:
             | People were saying when the PRC was founded 75 years ago it
             | would collapse any day now. They were saying this during
             | the cultural revolution. They were saying it earlier this
             | year, as China sent a robot to the far side of the moon to
             | collect moon rocks and bring them back to earth. And
             | they're still saying it. I'm not holding my breath.
        
               | doctorpangloss wrote:
               | There are HN posters with the ability to see hard data
               | inside America's largest tech and manufacturing
               | businesses, but don't investigate the question, "How much
               | of what you buy every day was made in China?"
        
               | kiba wrote:
               | Just because PRC didn't collapse doesn't mean PRC perform
               | well. On the contrary, the current strength of PRC is
               | probably a reversion to mean, what China would be like if
               | it wasn't so mismanaged, and yet decades late from where
               | they could be.
               | 
               | States can endure a lot of mismanagement. Look at North
               | Korea for instance. What we won't know is when we hit the
               | breaking point.
               | 
               | What is happening in Russia may lead to an eventual
               | collapse, though unlikely. There are some signs of a loss
               | of monopoly on violence as the system is pushed to its
               | breaking point. Hopefully that won't happen, but it's a
               | scary possibility nonetheless.
        
             | zorked wrote:
             | China is the #1 trading partner of nearly every country in
             | the world. That's all you need to know about how bad they
             | are doing.
        
           | nabla9 wrote:
           | Not really:
           | 
           | https://data.worldbank.org/share/widget?contextual=aggregate.
           | ..
        
           | CyberRymden wrote:
           | Do you actually think China has fairer courts, more open
           | financial markets, and better business environment than the
           | EU or US? For the longest time Hong Kong had to fill those
           | gaps for China in order for the country to attract capital.
           | 
           | Regardless, even if China does today the explanation still
           | holds considering China only transformed a few decades before
           | the book was written.
        
             | JetSpiegel wrote:
             | I think China is a worse country to live that the US or EU,
             | but a better business environment. China's State Capitalism
             | is simply more efficient than the neoliberalism hellscape
             | that came up from the Soviet Union's collapse.
             | 
             | I see the rest of the world becoming more similar to China
             | than the other way around, unfortunately. The US is already
             | a pseudo-Soviet state economically, and is on the brink of
             | becoming a dictatorship on top of that.
        
               | blackhawkC17 wrote:
               | > I see the rest of the world becoming more similar to
               | China than the other way around, unfortunately.
               | 
               | I hope they enjoy the mediocrity that comes with state-
               | dominated economies.
               | 
               | > The US is already a pseudo-Soviet state economically.
               | 
               | Maybe I'm blind, but I have no idea how someone looks at
               | the USA and concludes this.
        
               | JetSpiegel wrote:
               | Extremely inequality that keeps increasing, political
               | movements that try to change this are killed in the crib,
               | a dying empire.
               | 
               | Just because the Central Comittee is called Blackrock,
               | doesn't mean the American economy is not being more and
               | more centrally planned. Free Enterprise is dying.
               | 
               | I mean economically, the political system is still "free"
               | (less and less), it's not a dictatorship (yet).
        
               | blackhawkC17 wrote:
               | > Just because the Central Comittee is called Blackrock,
               | doesn't mean the American economy is not being more and
               | more centrally planned.
               | 
               | Of course, you'll mention BlackRock, the never-ending
               | boogeyman for people with little economic knowledge.
        
           | jltsiren wrote:
           | You have a short-term perspective. All kinds of governance
           | structures can work for a single human lifetime, if they
           | manage to get the right people to the right places. But those
           | people will eventually retire and die. Good institutions make
           | it more likely that their replacements will also be competent
           | and have the right motivations and incentives.
           | 
           | PRC has enjoyed ~45 years of stability and economic growth
           | under four leaders. Until now, the leaders have retired
           | voluntarily, and there has been an ordered transition of
           | power to the successor. But Xi Jinping is clinging to power
           | in a way his predecessors didn't. If he stays beyond 2027, it
           | will be interesting to see if China can survive his death.
        
         | Eumenes wrote:
         | > Krugman
         | 
         | Not sure I'd spend time on a Krugman book. He predicted in 1998
         | that the internet would cease having an economic impact by 2005
         | and that it would be no greater than fax machines. He's like
         | the Neil deGrasse Tyson of economics.
        
           | CyberRymden wrote:
           | Krugman is controversial at times, but he is a serious
           | economist. The quote is also taken out of two important
           | contexts. 1. It was not a serious academic prediction but
           | rather part of a fluff piece by the Times about future
           | precitions. 2. The quote also exists in the context of a
           | debate that was raging during the advent of the internet
           | whether or not the internet would hyper charge productivity
           | and economic growth. In hindsight, especially after the late
           | 1990s, the truth is far closer to the fax machine rather than
           | a new era of prosperity. The lack of visible productivity
           | growth from a technology that has so visibly transformed our
           | society is one of the bigger questions in economics today.
        
             | AnimalMuppet wrote:
             | The lack of _visible_ productivity growth. In particular,
             | it 's not as visible as you expect _in the GDP statistics_.
             | 
             | Take TV Guide, for instance. Now, if anybody watches
             | broadcast television, they can use the internet to find out
             | what's on when. Is that better or worse for users than
             | having a paper TV guide? In many ways it's better. But it
             | shows up in the GDP as a negative, because nobody's buying
             | TV Guide any more.
             | 
             | Or take Google. I can search for any information I want,
             | for free. That creates immense value - immense in every
             | sense _except_ the GDP, where it doesn 't show up at all,
             | _because it 's free_.
             | 
             | Wikipedia. Linux. gcc. The Wayback Machine. Even HN. All
             | this is available to us, whenever we want it, for whatever
             | purpose we want, for free. There's great value to us. Just
             | nothing that shows up on the GDP statistics, because it's
             | all free. (Yeah, I know, RedHat sells Linux, and Wikipedia
             | asks for donations. They aren't Microsoft selling Windows
             | and The World Book, though. You can still use them for
             | free, and not get sued or jailed.)
        
               | kiba wrote:
               | Sure, there's a lot of value. There's also a lot of slops
               | and negative value. These days I don't even use wikipedia
               | that much even though I googled things constantly.
               | 
               | GDP is a very gross measure of things to be sure, but
               | also difficult to fake.
        
               | blackhawkC17 wrote:
               | These free things (Wikipedia, Linux, etc.) are sustained
               | by a high GDP that translates to high incomes and, in
               | turn, people willing to donate time and money for them to
               | remain free.
               | 
               | Let's try living in a country with a measly GDP per
               | capita of $1,000 (Rwanda for example) and see how many
               | free things we can get..
        
             | AlbertCory wrote:
             | > Krugman is controversial at times
             | 
             | Kind of like saying Lysenko was controversial at times.
             | 
             | He's not "controversial," he's just a bloviator. His
             | credentials as a serious economist expired long ago when he
             | signed up with the leftist team and agreed to never
             | challenge them again, on anything.
             | 
             | When you have to spend many words on explaining the
             | "context" in which someone's quotes should be viewed, you
             | are losing.
        
               | ninjagoo wrote:
               | > His credentials as a serious economist expired long ago
               | when he signed up with the leftist team
               | 
               | You might be (unpleasantly) surprised by the emphasis of
               | the current year's nobel economics prize winners on the
               | importance of societal institutions and the need for
               | inclusivity to advance the wealth of nations :-)
        
               | AlbertCory wrote:
               | I'd be more surprised if you linked to any of Krugman's
               | recent columns and I actually thought they were
               | worthwhile.
        
               | Eumenes wrote:
               | Indeed. He is more politico and less economist these
               | days: https://www.nytimes.com/column/paul-krugman
        
               | cyberax wrote:
               | > Kind of like saying Lysenko was controversial at times.
               | 
               | This is BS. Krugman has very specific theories that made
               | predictions validated by practice.
               | 
               | Remember 2008? He made a prediction that an increase in
               | the monetary base wouldn't cause inflation. This
               | prediction was spectacularly confirmed. He also made a
               | case for fiscal intervention: it wouldn't cause
               | inflation, and it would speed up the recovery. And his
               | prediction again was confirmed.
               | 
               | More recently: he predicted that the inflation spike was
               | transient, due to supply chain issues rather than
               | fundamental changes. And he's again been vindicated.
        
           | ninjagoo wrote:
           | > He predicted in 1998 that the internet would cease having
           | an economic impact by 2005 and that it would be no greater
           | than fax machines
           | 
           | The future is hard to predict. Using that as a reason to
           | discount a Nobel-prize economist's economics-related work
           | sounds like a gap in logic.
        
             | nradov wrote:
             | If economists can't predict the future then what good are
             | they?
        
               | cjalmeida wrote:
               | If developers can't produce code without bugs, what good
               | are they? /s
        
         | fekunde wrote:
         | After reading "Why Nations Fail", which I really enjoyed, I
         | wondered whether we could develop an LLM with a wide enough
         | context window where I could input the lessons from such books
         | along with data and metrics about a specific country. Then, the
         | AI could prescribe tangible solutions and policy
         | recommendations tailored to that nation's unique situation. I'm
         | curious what an AI system like that might look like. I also
         | wonder if it's possible to experiment with a smaller-scale
         | version of this concept using today's technology.
        
           | JetSpiegel wrote:
           | I thought the Chicago School had already proved blindly
           | applying "policy recommendations" from on high was a receipt
           | for disaster and misery, but sure, let's do the same with AI,
           | this time it will surely work.
        
           | nradov wrote:
           | What's the point? We generally know what economic policies
           | work. But they aren't put into effect due to ideology or
           | special interests. This isn't a problem with a technical
           | solution.
        
         | omnee wrote:
         | The rule of law is a key part of a nations success as argued by
         | AJR. A very good exposition for the layman on the rule of law
         | provided by Tom Bingham in the eponymous 'The Rule of
         | Law):https://www.goodreads.com/book/show/7734691-the-rule-of-
         | law
         | 
         | While the above is informed by the UK's constitutional
         | arrangement, the 8 principles are near universal when
         | considering nations that have or aim for The Rule of Law.
         | 
         | The principles are:
         | 
         | (1) The law must be accessible and so far as possible
         | intelligible, clear and predictable.
         | 
         | (2) Questions of legal right and liability should ordinarily be
         | resolved by application of the law and not the exercise of
         | discretion.
         | 
         | (3) The laws of the land should apply equally to all, save to
         | the extent that objective differences justify differentiation.
         | 
         | (4) Ministers and public officers at all levels must exercise
         | the powers conferred on them in good faith, fairly, for the
         | purpose for which the powers were conferred, without exceeding
         | the limits of such powers and not unreasonably.
         | 
         | (5) The law must afford adequate protection of fundamental
         | human rights.
         | 
         | (6) Means must be provided for resolving, without prohibitive
         | cost or inordinate delay, bona fide civil disputes which the
         | parties themselves are unable to resolve.
         | 
         | (7) The adjudicative procedures provided by the state should be
         | fair.
         | 
         | (8) The rule of law requires compliance by the state with its
         | obligations in international law as in national law.
        
       | nabla9 wrote:
       | Well deserved. Acemoglu is the economist everyone respects.
       | 
       | Very technical, but not for the sake of mathiness. His models
       | have a meaning. They clarify thought and ideas.
       | https://scholar.google.com/citations?user=l9Or8EMAAAAJ&hl=en
        
       | NeutralForest wrote:
       | Very cool to see public econ and history of economics
       | represented! On top of the popular release, there's usually some
       | advanced background info
       | (https://www.nobelprize.org/uploads/2024/10/advanced-economic...)
       | which is admittedly pretty massive but gives a lot of background
       | about the Prize.
        
       | doodlebugging wrote:
       | Seems like one conclusion that can be drawn is that the
       | indigenous people who get colonized should just shut up and enjoy
       | their new reservations. The political, societal, and economic
       | benefits of colonization were not intended to help them. Those
       | changes were only to help those who did the colonizing build a
       | new society that was free from the institutions that prevented
       | them having a voice in how they were able to conduct their lives
       | back in the old (European monarchy) country. Shit rolled downhill
       | in the new country and the oppressed became the oppressor.
       | 
       | It worked out in the end though for those who survived since they
       | now have representative government with members elected who are
       | beholden to the people and who remember the main lesson of the
       | past - grassroots organization against oppression is the only
       | tool that works to preserve freedom for the majority of the
       | people in a country.
        
         | sameoldtune wrote:
         | Well it's kind of a moot point if we only care about "those who
         | survive".
        
         | whimsicalism wrote:
         | i don't fully understand your post, but I don't think
         | 
         | "grassroots organization against oppression is the only tool
         | that works to preserve freedom for the majority of the people
         | in a country"
         | 
         | is a good takeaway for native americans and i struggle to
         | imagine a counterfactual where native americans having this
         | knowledge at the start of colonization would make any
         | significant difference to the course of events
        
         | inglor_cz wrote:
         | In most settler-colonial situations during history, unless
         | strict separation between races and nations was maintained, the
         | conquerors intermingled with the conquered so thoroughly that
         | you cannot tell them apart nowadays (Who is a Norman and who is
         | an Anglo-Saxon? Who is a Roman and who is a Celt?). That
         | included a lot of Amerindians in the US.
         | 
         | This is pretty much the norm across the ages. You could
         | probably say that it is wise from the vanquished to adapt at
         | least partially the culture of the conquerors; after all, it
         | might be better suited for victories in wars, and that was a
         | major factor in survival until recently. (In some places, still
         | is.)
        
         | alephnerd wrote:
         | > Seems like one conclusion that can be drawn is that the
         | indigenous people who get colonized should just shut up and
         | enjoy their new reservations
         | 
         | Colonial institutions ARE extractive.
         | 
         | This is a fairly prominent point in Acemoglu, Simon, and
         | Robinson's works.
        
         | CyberRymden wrote:
         | Their seminal book literally opens with explaining how most
         | colonial institutions were created to extract the wealth of
         | natives and slaves, institutions that live on today through the
         | authoritarian regimes that inherited them.
        
         | AlbertCory wrote:
         | > indigenous people who get colonized
         | 
         | Academic talking points. Talk about the indigenous Irish who
         | got "colonized" by the Celts, or the Britons who got
         | "colonized" by the Saxons, Danes, and Normans, or the native
         | American tribes who got "colonized" by other tribes, or the
         | Gauls who got "colonized" by migrant tribes.
         | 
         | The fact is, everyone is on "stolen land" including the
         | "indigenous." The Spaniards were more exploitive than the
         | English and other northern Europeans (look up "Potosi"), but
         | that doesn't make the latter perfect.
         | 
         | The New World was going to be integrated with the Old World
         | sooner or later, no matter who did it.
        
       | zxcb1 wrote:
       | I, for one, am waiting for the field of economics to be colonized
       | by AI folks
        
       | kome wrote:
       | Terrible decision. Very bad and sloppy economics, a simplified
       | version of what sociology and political science have been doing
       | much better for over 40 years, as if before these crucial
       | contributions we had no idea that institutions, forms of power
       | and social conflict affect economic outcomes.
       | 
       | Branko Milanovic has aptly and rather amusingly defined
       | Acemoglu's naive theorizing as "Wikipedia entries with
       | regressions" https://glineq.blogspot.com/2014/08/my-take-on-
       | acemoglu-robi... and he is right.
       | 
       | Acemoglu's strand of institutional social science is known to be
       | painfully racist and clueless about realities on the ground
       | https://africasacountry.com/2016/09/africa-why-western-econo...
       | The narrative that you can get economic growth with "good
       | institutions" is a fable, and cases like China are also
       | completely outside their narrative. Not only is their narrative
       | historically inaccurate, if not ideological, it can't explain why
       | Western economies like the US have prospered despite being as
       | corrupt as China is today.
        
         | alephnerd wrote:
         | > defined Acemoglu's naive theorizing
         | 
         | It sounds like you are parroting arguments without explaining
         | those arguments.
         | 
         | "Wikipedia entries with regressions" is a facile argument that
         | can be applied to Picketty and Milanovic as well.
         | 
         | Plus, Milanovic congratulated AJR and agreed to a number of
         | their initial works in the space (which are the ones that won
         | them the Nobel)
         | 
         | > The narrative that you can get economic growth with "good
         | institutions" is a fable
         | 
         | Bullshit. We don't invest in Uganda or Kenya because we know we
         | won't be able to get a contract enforced.
         | 
         | A major reason FDI to PRC skyrocketed in the 2000s was because
         | individual provinces worked on building SEZs with ease of
         | contract enforcement, as well as a number of harmonizing
         | business regulation reforms (eg. the Guiding Cases Project).
         | 
         | And that same FDI outflow from China that we are now seeing is
         | due to the opaqueness that now permeates the judicial and
         | regulatory environemnt in China after a number of backwards
         | reforms in 2018-22.
         | 
         | > it can't explain why Western economies like the US have
         | prospered despite being as corrupt as China is today.
         | 
         | Over a century of major reforms and regulations.
         | 
         | This was a major reason why the PRC began the Guiding Cases
         | project.
        
         | nabla9 wrote:
         | Here is what your boy Branko Milanovic says:
         | https://x.com/BrankoMilan/status/1845850368221032590
         | 
         | > Good decision. They deserve it. Obviously, there is a lot to
         | disagree with in their work, but AJR initial papers were
         | excellent, and broadened economic work to include politics and
         | economic history. Congratulations!
        
         | blackhawkC17 wrote:
         | There's nothing racist about stating that strong institutions
         | and rule of law lead to economic success.
         | 
         | It's an obvious truth, which many Africans reject for some
         | reason. I'm Nigerian, and my country is a clear example of how
         | excessive corruption and dependence on a natural resource (oil)
         | makes a country mediocre.
        
           | alephnerd wrote:
           | Dan Rogger published an interesting paper 13 years ago
           | digging into this from a Civil Service standpoint [0]
           | 
           | Some of the recommendations were implemented, but it's still
           | very much a work in progress.
           | 
           | [0] - https://www.danrogger.com/files/survey%20reports/Nigeri
           | a%20C...
        
       | AlbertCory wrote:
       | The "Nobel Prize in Economics" was not one of the original ones
       | endowed by Alfred Nobel. As the name implies, it was created by a
       | bank.
       | 
       | Is there any reason Jeff Bezos, Bill Gates, Mark Zuckerberg, and
       | Elon Musk can't endow a Prize in Computer Science? That would end
       | the controversy about whether AI is "Physics."
        
         | kelseyfrog wrote:
         | It's not even a non-original Nobel. It's simply "Not a Nobel
         | Prize".
         | 
         | The headline should read "Daron Acemoglu, Simon Johnson, and
         | James A. Robinson won Not a Nobel Prize in Economics."
         | 
         | We shouldn't validate the idea that one can earn a Nobel in
         | economics. It's simply not possible because such a prize does
         | not exist. Shame on economists for attempting to legitimize
         | economics using the memory of Alfred Nobel. It is low, even for
         | them.
        
         | jldugger wrote:
         | We already have the Turing Award, and a prize sponsored by
         | Google.
        
         | doe_eyes wrote:
         | > Is there any reason Jeff Bezos, Bill Gates, Mark Zuckerberg,
         | and Elon Musk can't endow a Prize in Computer Science?
         | 
         | Even without searching, I'm sure they back a number of
         | organizations that do endow various awards, scholarships, and
         | so on. I doubt they could come up with a "flagship" one that
         | would be as prestigious as the Nobel Prize, though. Our
         | attitudes toward modern-day "industrialists" and their pet
         | projects are quite different today. Whatever controversies
         | surround the Nobel Prize, they would be many times worse for
         | the Bezos-Gates-Zuck-Musk Medal of Merit.
        
           | AlbertCory wrote:
           | This seems kinda confused. The Nobel is now controversial
           | because after all, Nobel invented dynamite and he wanted to
           | expunge his guilt. Yet you said it was "prestigious" -- but
           | you want to cancel that, regardless?
           | 
           | But somehow the Nobel Prize in Computer Science would be too
           | controversial even given all that.
           | 
           | OK, I get that you don't like Bezos-Gates-Zuck-Musk. Maybe
           | you're just jealous.
        
             | doe_eyes wrote:
             | > The Nobel is now controversial because after all, Nobel
             | invented dynamite and he wanted to expunge his guilt.
             | 
             | It's not controversial for that reason. It's actually a
             | fantastic origin story for the prize, especially since he
             | arranged for it on his deathbed.
             | 
             | > OK, I get that you don't like Bezos-Gates-Zuck-Musk.
             | 
             | Huh?
        
         | blackhawkC17 wrote:
         | > The Breakthrough Prize, renowned as the "Oscars of Science",
         | recognizes the world's top scientists working in the
         | fundamental sciences - the disciplines that ask the biggest
         | questions and find the deepest explanations.
         | 
         | > _Each prize is $3 million_ and presented in the fields of
         | Life Sciences, Fundamental Physics and Mathematics.
         | 
         | > The Breakthrough Prizes were founded by Sergey Brin,
         | Priscilla Chan and Mark Zuckerberg, Yuri and Julia Milner, and
         | Anne Wojcicki. The Prizes have been sponsored by the personal
         | foundations established by Sergey Brin, Priscilla Chan and Mark
         | Zuckerberg, Ma Huateng, Jack Ma, Yuri and Julia Milner, and
         | Anne Wojcicki.
         | 
         | https://breakthroughprize.org/About
        
         | nabla9 wrote:
         | Not being the original does not make it any less meaningful.
         | Repeating the same "Not real Nobel" spiel every time Nobel
         | price in Economics is discussed as it is some kind of
         | refutation is silly.
         | 
         | >Is there any reason
         | 
         | Yes there is. Nobel committee has accepted Nobel in economics
         | as one of the Nobel prices. Its in their website, in their
         | documents and its given out in the same ceremony in Stockholm.
         | Laureates are selected by the Royal Swedish Academy of
         | Sciences.
         | 
         | "created by a bank "
         | 
         | Sveriges Riksbank is the central bank of Sweden. It's not a
         | just some random private bank.
        
       | aanet wrote:
       | Absolutely chuffed to hear that Daren Acemoglu (one of my fav
       | econ writers), Simon Johnson and Robinson won the Nobel memorial
       | prize.
       | 
       | Acemoglu has been a brilliant and prolific econ writer, and I
       | enjoy his exposition. Many have commented on his "Why Nations
       | Fail", and rightly so. More recently, he also wrote "Power and
       | Progress: Our Thousand-Year Struggle Over Technology and
       | Prosperity".
       | 
       | I'm more interested in his thoughts on tech and development (than
       | on instituions and democracy), and he doesn't disappoint.
       | 
       | More topically for HN folks, he wrote on "The Simple
       | Macroeconomics of AI" [1]. Unlike many contemporary researchers /
       | writers (incl. Ethan Mollick) who are completely ga-ga over
       | prospects of AI-driven economy over the next decade, Acemoglu is
       | more reserved.
       | 
       | His top findings:                   Modest Productivity Gains:
       | Estimates suggest TFP growth from AI will be less than 0.55% to
       | 0.71% over 10 years, limited by the complexity of tasks.
       | Hard vs. Easy Tasks: AI's impact on "hard-to-learn" tasks, which
       | lack clear metrics and are context-sensitive, will likely produce
       | smaller gains than on simpler tasks.              Wage Effects:
       | AI's productivity benefits may not substantially raise wages,
       | particularly for low-skill workers.              Inequality
       | Impact: AI is unlikely to reduce labor income inequality
       | significantly and may widen the gap between capital and labor
       | incomes.              Task Complementarity: AI could enhance
       | productivity by complementing human workers, though benefits may
       | be limited if task prices fall.              Role of New Tasks:
       | New AI-enabled tasks could boost productivity, but some may also
       | create negative social value, such as manipulative content.
       | Automation Limitations: Extensive-margin automation may not lead
       | to substantial wage increases if displacement effects outweigh
       | productivity benefits.              Consumer Welfare: Increases
       | in GDP may overstate consumer welfare improvements due to
       | investment's impact on consumption.              Capital-Labor
       | Dynamics: AI's use may increase the capital share of income,
       | further shifting income away from labor.              Investment
       | Response: AI-related productivity gains will likely trigger only
       | modest capital stock increases.
       | 
       | [Caveat: above summary generated by ChatGPT, sorry!]
       | 
       | I'm cautious -- neither too optimistic (although the engineer in
       | me wants to believe in the AI-driven future) nor too pessimistic
       | (but I'm also very, very realistic in broad adoption and benefits
       | dissemination of AI).
       | 
       | His recent chat with FT [2] is also illuminating (Sep 2024).
       | 
       | ---
       | 
       | [1]
       | https://economics.mit.edu/sites/default/files/2024-04/The%20...
       | (Apr 2024)
       | 
       | [2] FT audio interview -
       | https://www.ft.com/content/e865a777-501a-4417-839e-dffd4b520...
       | (Sep 2024)
        
         | jncfhnb wrote:
         | > Wage Effects: AI's productivity benefits may not
         | substantially raise wages, particularly for low-skill workers.
         | 
         | Yeah no shit. It's going to spike them down hard.
        
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