Tuesday, July 06, 2010

No, He's a Keynsian.

In the middle of my masterful lecture on inequality and credit markets, a lecture I had prepared for with gusto, a lecture I was delivering at full steam, driving home the economic models and theories which lead to the failure of credit markets in highly unequal societies, a young, usually very bright student raised their hand. "YES?" I said with a flourish, "A QUESTION?" anticipating the nugget of wisdom that will come from the fertile mindsoil of their upper level undergraduate minds. Perhaps was he going to ask about failed redistribution policies? Question a piece of the model where a different conclusion could be reached? Point out the controversial implication that rising wages would stifle entrepreneurship in developing countries (see Development Economics by Debraj Ray, chapter 7)? Not agree with the implication that inequality is not Pareto Efficient and begets more inequality?

"Yeah, is Paul Krugman a socialist? I mean... he was on the Colbert Report last night, and he sounded kinda socialist."

I'm not sure if I physically manifested the deflation of my ego upon realizing that my students had wandered off into reruns on Comedy Central while I was presenting what I considered at the time to be one of my more fun lectures.

Back to the drawing board...

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