Paul Samuelson, who was awarded the Nobel Prize in 1970, is not in vain considered the economist of all time. A significant part of his achievements are evidence of fundamental theories and principles from almost all sections of the economy: the theory of production, international trade, financial analysis, the theory of capital and economic growth, the history of economic thought, macroeconomics. We invite you to get to know such an outstanding scientist as Paul Samuelson. The ideas that briefly characterize his main achievements will be presented in this article. Scientists still read and re-read his works.
Samuelson's first article
The economic theory of Paul Samuelson is presented in his books and articles. The scientist wrote his first article at the age of only 23, in 1938. It's called Notes on a Pure Theory of Consumer Behavior. At the time of writing this article, Samuelson was studying atgraduate school. He showed that the demand curve, a well-known tool of analysis, could be deduced from those preferences that were "revealed" thanks to the part of purchases that can be observed in the market, without resorting to either indifference curves or marginal utility theory..
Main Articles
In 1939, Samuelson's article "The Interaction of the Multiplier and the Accelerator" showed that if you add the (Keynesian) model of the investment accelerator to the theory of income determination, you get a simple but complete explanation of why the economy in our time experiences business cycles. In 1948, the article "International Trade …" appeared, which provides evidence that the arguments of the adherents of free trade, under certain conditions, cease to operate. Economists similarly discovered years ago that it is not efficient to produce some goods through the market mechanism because the benefits they provide are available to everyone, so no one is interested in paying for them. However, only Samuelson, in an article titled "The Pure Theory of Public Expenditure", provided a rigorous scientific definition of the characteristics and properties of these public goods.
Dissertation work
Samuelson received a brilliant doctoral thesis in 1941 from Harvard University. However, the work was published only in 1947. It's called Foundations of Economic Analysis. This is another step forward forways of understanding by the economy that any economic behavior can be fruitfully studied. To do this, it is necessary to approach its consideration as a maximization problem, which is solved by integral and differential calculus. Samuelson formulated the so-called correspondence principle. According to him, the analysis of statistical equilibrium cannot give positive results if there is no evidence of the level of stability corresponding to it. The latter means that insignificant deviations from the equilibrium values of various variables are self-correcting. This formulation marked the beginning of the current interest of scientists in economic dynamics, as well as in the study of prices that are observed in non-equilibrium conditions.
Samuelson's Essential Books
All of the above is very impressive, but this is not all the achievements of the American scientist. In 1948, the textbook "Economics" (Paul Samuelson, William Nordhaus) was created, designed for an introductory level. It featured Samuelson's invention of the 45-degree Keynesian Cross, which defines national income. This invention played a key role in the spread of Keynesianism in the years after World War II. In 1958, Samuelson created a book called Linear Programming and Economic Activity. It was co-written with Robert Solow and Robert Dorfman. This book played a very important role in the dissemination of methodsimplementation of mathematical optimization that appeared during the war. The development of mathematical optimization took place in conjunction with Keynesian economics. This book was not just a textbook, because its authors managed to combine the theory of economic growth, linear programming and price theory, that is, issues that were considered before them in isolation.
Paul Samuelson: biography
The future scientist was born in the state of Indiana (city of Gary) in 1915. At the age of sixteen, he entered the University of Chicago. Samuelson received his master's degree from Harvard University in his early twenties. And at 26 he was already a Ph. D. Samuelson's dissertation received the David A. Wells Award from Harvard University. Then he began to work as a teacher at the Massachusetts Institute of Technology. After 6 years, Samuelson became a full professor. He worked at this institute all his life, until his retirement in 1986.
After receiving the Nobel Prize, Samuelson's numerous publications continued to appear in print. They touched on a variety of topics, including the optimal social security system and the theory of labor exploitation set forth in the works of Marxists. From the mid-1970s onward, Samuelson's "Factor Price Equalization" papers on international trade made it clear that free trade between nations should help reduce income disparities.from capital and from labor in these countries.
As for his personal life, Samuelson has 4 sons and 2 daughters from his first wife. He married a second time in 1981. Despite his venerable age, the scientist continued teaching at Harvard after his marriage, and also advised the Federal Reserve System and the US government.
Samuelson died on December 13, 2009 after a short illness. Thus, he lived to be 94 years old. The press service of the Institute of Technology announced his death to the public.
Prizes and awards
Paul Samuelson is the recipient of numerous awards and honorary titles. In 1947 he was awarded the J. B. Clarke Prize, the first of its kind. This award is given to young scientists (up to 40 years old) for achievements in the field of economics. In 1953, Samuelson became president of the Econometric Society and then, in 1961, of the American Economic Association. Between 1965 and 1968, Paul Samuelson also headed the International Economic Association. The scientist received the A. Einstein Medal in 1970. Then he became a Nobel Prize winner. Samuelson received it for his contribution to the development of the economy.
Government activity
Samuelson was an adviser to various government agencies, including the Treasury, the Office of the Defense Industry, the Federal Reserve System, the Budget Office, and others. In addition, he was an adviser to the American presidentKennedy. Paul Anthony Samuelson wrote a special group report that was addressed to this president. For many years, this scientist, like M. Friedman, was a regular contributor to the Newsweek periodical. His selected articles were collected in 5 thick volumes. The work was called "Collected Scientific Papers" and was published in 1966.
Samuelson's literary style
Note that the literary style of this scientist is characterized by caustic irony and contempt for mere mortals. At the same time, he also has a tendency to express thoughts accurately, which is characteristic of all born teachers. As one of the most prolific economists of all times and nations (for 45 years, this scientist created an average of one article every month), he became one of the most successful authors in terms of publishing his works. The textbook created by Samuelson Paul Anthony ("Economics"), for example, has gone through more than two dozen editions. It has been translated into at least 12 languages of the world. This work has been sold in various countries in the amount of more than 4 million copies.
A truly unique and unprecedented case in the history of economics! Even in our country it was published, of course, with an unauthorized amendment and ideological cuts.
Why has Economics become so popular?
For years, economists have suffered from the lack of connection between the new macroeconomics(Keynesian) and old microeconomics (neoclassical). However, in the textbook he created, Samuelson claimed to be a "neoclassical synthesis". Problems with busyness, according to him, require intervention in the neoclassical theory of Keynesianism. However, the first can again be given the reins after full employment is reached.
This confession is key to understanding the rapid success of the book Paul Samuelson ("Economics") created. One of its most interesting features (by the way, an excellent example of printing art, as well as the first textbook on economics, made using color charts) is the extent to which successful publications managed to reflect the interest of the economic public, which changed over time. Before the end of a new topical topic, it was immediately reflected in the next edition of Economics.
The secret of Samuelson's great influence
Paul Samuelson, known for his "liberal" views (in the American sense of the word), tried to keep the golden mean in the most important issues, such as bureaucracy or the market, public or private, monetarism or Keynesianism. He never took extreme ideological positions in his works. Thus, Paul Samuelson is an excellent example of an economic scientist who adhered to centrist views in politics. This is one of the reasons for the great personal influence of this economist.
Enemies and fans
Samuelson didn't have many enemies. And those that were, called him an economic Paganini and an intellectual tightrope walker. But many admirers of this scientist consider him the founder of the main direction of economic science in our time. They do not hesitate to call the "Samuelson era" the post-war period of the development of this science.
