If your definition of economics is this:
"I would like to start with the one that I would have used when I was young and studied Marxist economics. Economics matters because it enables you to look at the grand political and economic changes in history and
to explain them using economic factors. In other words, it is, if I can say so, a branch of historical materialism. Decisions driven by economic factors shape societies and make them change."
Then you must read classics.
If your definition is this:
"A neoclassical view of economics would be more pragmatic. It would be to argue that economics matters - and to use Alfred Marshall’s definition there - because it deals with our ordinary life and its objective is to improve that ordinary life,
to make our incomes higher, to allow us to have more free time, and to make poverty disappear so that we can enjoy other activities that we like while having a satisfactory standard of living."
Then, you should read them but perhaps not as carefully as under the first definition.
If your definition is:
"Economics is the allocation of scarce resources among the alternative ends."
Then you can read only selected classic texts.
If your definition is that economics is just what businesses and finances do now, they perhaps you should not bother with classic texts.

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More from @BrankoMilan

22 Oct
I think these are 2 reasonable definitions of economics:
ageofeconomics.org/interviews/bra…
Q. Why does economics matter?
This is a huge and difficult question. Perhaps I can give two answers. I would like to start with the one that I would have used when I was young & studied Marxist econ.
Economics matters b/c it enables you to look at the grand political and economic changes in history and to explain them using economic factors. It is, if I can say so, a branch of historical materialism. Decisions driven by economic factors shape societies and make them change.
A neoclassical view of economics would be more pragmatic. It would be to argue that economics matters - and to use Alfred Marshall’s definition there - because it deals with our ordinary life and its objective is to improve that ordinary life, to make our incomes higher,
Read 4 tweets
15 Oct
Covers of "Capitalism, Alone".
Starting with the original and then going on. Image
English-language paperback: very nice. Image
French: very similar to the English paperback. I do not know if there was some mutual influence. Image
Read 14 tweets
28 Sep
Being against inequality has acquired a ritualistic or symbolic character. You just say that you are against inequality and so long as nobody does anything about it you can continue saying you are against. Life goes on as before.
Like in Christianity, when you were supposed to ritualistically denounce the devil. You do it & everything is the same.
But when somebody tries to check inequality, there are immediately problems. If China goes against Alibaba & Tencent, that's bad for innovation.
if it goes after corruption, it is political. If it bans for-profit tutoring, it will change nothing.
Same in the US. If Facebook or Google are broken up, the Chinese will take them over. If tax rates on capital are increased, nobody will invest.
Read 4 tweets
18 Sep
About 2/3 of US population (200 million people) are in the top global income decile.
There are relatively few Americans (~40 million) who are *not* in the two highest global deciles.
(All 2018-19 data, adjusted for differences in countries' price levels)
Chinese urban population is significantly poorer. Most are in the 8th global decile, although 84 million are in the global top decile.
If we include Chinese rural population (not shown here), China has 112m people in the top global decile, making it the largest group after US.
Note that China has "vacated" the two bottom global deciles.
When we move to India, the situation gets gloomier. Most of Indian urban population is in the low global deciles and only 10 million are in the top two. (The rural situation is worse.)
Read 4 tweets
15 Sep
My brilliant friend and co-author of an excellent new book "Six faces of globalization" @AntheaERoberts was wondering why I did not discuss the two last (5th & 6th) glob. narratives.
The 5th narrative is geoeco(political): how to stop the rise of China? The arguments used by the proponents of that approach are a pot-pourri of weird ("CHN students should study Shakespeare not engineering") to absurd (CHN s to be mistrusted even if has not done anything bad).
It makes no sense to engage substantively w/ such a narrative b/c people who make these claims are uninterested in whether they are true or false. Their objective is political propaganda & that's fine.
Read 6 tweets
11 Aug
Summary of the Ranaldi-Milanovic paper.
We distinguish btw
1 compositional inequality (are there people receiving only income from K & everybody else gets wages only; or is everyone getting the same shares of their income from L and K),
and
2 inter-personal inequality (Gini).
High compositional inequality is associated w/ high Gini. Not surprising. If you have on one side people receiving income from K only, and everybody else gets just wages, inter-personal inequality is likely to be high. Examples are LatAm & India.
Nordic countries are exceptional because they combine high compositional inequality with low inter-personal inequality. So they are (what we call) "hidden class societies". Their low inequality is due to wage compression.
Read 6 tweets

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