American economist Paul Samuelson: basic ideas, economic theory and biography

Paul Samuelson, whose Nobel Prize was awarded in 1970, is not in vain considered an economist of all times and peoples. A significant part of his achievements are proofs of fundamental theories and principles from all practical sections of the economy: production theory, international trade, financial analysis, capital theory and economic growth, history of economic thought, macroeconomics. We invite you to get acquainted with such an outstanding scientist as Paul Samuelson. Ideas briefly characterizing his main achievements will be set forth in this article. His writings are read and re-read to this day.

Samuelson's first article

The economic theory of Paul Samuelson is set forth in his books and articles. The first article the scientist wrote at the age of only 23 years, in 1938. It is called "Notes on the pure theory of consumer behavior." During the creation of the article Samuelson studied in graduate school. He showed that the demand curve, a well-known analysis tool, can be derived from those preferences that were "revealed" due to the part of purchases that can be observed on the market, without resorting to either indifference curves or marginal utility theory .

Main articles

In 1939 Samuelson's article "Multiplier and Accelerator Interaction" showed that if you add to the theory of income determination (Keynesian) model of the accelerator of investment, you get a simple but full explanation of why the economy is currently experiencing business cycles. In 1948, an article entitled "International Trade ..." appeared, in which evidence is presented that the arguments of the adherents of free trade under certain conditions cease to operate. Economists have discovered in the same way many years ago that the production of certain goods through the use of a market mechanism is ineffective, since the benefits brought by them are available to everyone, so no one is interested in paying for them. Nevertheless, only Samuelson in the article entitled "The Net Theory of Public Expenditures" provided a rigorous scientific definition of the characteristics and properties of these public goods.

Dissertation

Samuelson defended in 1941 at Harvard University a brilliant doctoral thesis. However, the work was published only in 1947. It is called "Foundations of Economic Analysis". This is one more step forward in the way of understanding the economy that it is possible to study fruitfully any economic behavior. For this, it is necessary to approach it as a maximization problem, which is solved by integral and differential calculus. Samuelson formulated the so-called correspondence principle. According to him, an analysis of statistical equilibrium can not yield positive results if there is no proof of the corresponding level of stability. The latter means that unimportant deviations from the equilibrium values of different variables are self-correcting. This formulation marked the beginning of the current interest of scientists in economic dynamics, as well as the study of prices that are observed in non-equilibrium conditions.

Samuelson's main books

All of the above is quite impressive, but this is not all the achievements of the American scientist. In 1948, the textbook "Economics" was created (Paul Samuelson, William Nordhaus), intended for the introductory level. It presented the invention of Samuelson's "45-degree Keynesian Cross," which gives a definition of national income. This invention played a key role in extending the direction of Keynesianism in the years after the Second World War. In 1958, Samuelson created a book called "Linear programming and economic activities." It was co-written with Robert Solow and Robert Dorfman. This book played a very large role in spreading the methods of implementing mathematical optimization that appeared during the war. The development of mathematical optimization took place in conjunction with the Keynesian economy. This book was not just a textbook, as the authors managed to combine the theory of economic growth, linear programming and the theory of prices, that is, questions that were considered before them in isolation.

Paul Samuelson: Biography

The future scientist was born in the state of Indiana (the city of Gary) in 1915. At the age of sixteen he entered the University of Chicago. Samuelson received his master's degree at Harvard University when he was not yet twenty. And in 26 he was already a doctor of philosophy. Samuelson's thesis received the David A. Wells Award from Harvard University. Then he began to work as a teacher at the Massachusetts Institute of Technology. Six years later Samuelson became a full professor. In this institute he worked all his life, until retirement, held in 1986.

After Samuelson received the Nobel Prize, many of his 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 outlined in the works of Marxists. Since the mid-1970s and later Samuelson's articles on "equalization of factor prices" on international trade have clearly shown that the freedom of trade between different states should help to reduce the differences between the income from capital and labor in these countries.

As for the personal life, Samuelson has 4 sons and 2 daughters from the first wife. He married a second time in 1981. Despite the venerable age, the scientist after the marriage continued his teaching activities at Harvard, 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 94 years. On his death, the press service of the Technological Institute said.

Prizes and awards

Paul Samuelson is a laureate of many awards, as well as the owner of a number of honorary titles. In 1947, he was awarded the JB Clarke Prize , which was the first in this series. This prize is awarded to young scientists (up to 40 years) for achievements in the field of economics. In 1953 Samuelson became president of the Econometric Society, and then, in 1961, and 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 the Nobel Prize laureate. Samuelson received her for his contribution to the development of the economy.

Government Activities

Samuelson was an advisor to various government agencies, including the Treasury, the Office of the War Industry, the Federal Reserve, the Budget Bureau, etc. In addition, he was an advisor to US President Kennedy. Paul Anthony Samuelson wrote a report of a special group that was addressed to this president. For many years this scientist, like M. Friedman, was a regular author of the periodical Newsweek. In 5 thick volumes, his selected articles were collected. The work was called the "Collection of Scientific Works" and was published in 1966.

Samuelson's literary style

Note that the literary style of this scientist is characterized by acrid irony and contempt for ordinary mortals. At the same time, he has a tendency to an accurate expression of thoughts, characteristic of all born teachers. Being one of the most prolific economists of all time (for 45 years this scientist created an average of one article each month), he became one of the most successful authors in publishing his works. The textbook created by Samuelson Paul Anthony ("Economics"), for example, has withstood more than two dozen publications. He was translated into at least 12 languages. This work was sold in various states in quantities of more than 4 million copies.

A truly unique unprecedented case in the history of economics! Even in our country it was published, of course, with unauthorized amendment and ideological bills.

Why did the "Economy" become so popular?

For many years economists have suffered because of the lack of connection between the new macroeconomics (Keynesian) and the old microeconomics (neoclassical). However, in his textbook Samuelson claimed "neoclassical synthesis." Problems with employment, in accordance with it, require intervention in the neoclassical theory of Keynesianism. However, the first one can again be given the reins of government after full employment has been achieved.

This recognition is the key to understanding the rapid success of the book, created by Paul Samuelson ("Economics"). One of the most interesting features of it (by the way, an excellent example of polygraph art, as well as the first textbook on economic theory, made using color charts) is the measure in which successful publications managed to reflect the interest of the economic community, which changed with time. Not yet had time to identify the new topical issue, as 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 hold on to the middle ground on the most important issues, such as bureaucracy or the market, public or private, monetarism or Keynesianism. He never rose in his works to extreme ideological positions. Thus, Paul Samuelson is an excellent example of a scientist-economist who adhered to centrist views in politics. This is one of the reasons for the great personal influence of this economist.

Enemies and admirers

Samuelson had not so many enemies. And those that were, called him an economic Paganini and an intellectual equilibrist. But many fans 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.