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  • Niall Ferguson on Prosperity and the Great Divergence

    The West has dominated wealth creation since the Industrial Revolution. It sure feels like the dawn of the twenty-first century is revealing a shift of some sort. Could this be the end of the West's dominance of the global economy? If it is, in what ways is that a bad thing for the global economy? And what lessons might China, India, Brazil, and other rising economies take from the last 200 years? The often-provocative Niall Ferguson tries to tackle the question of how the "Great Divergence" came about. In this Ted Talk, Ferguson outlines what he calls "killer apps," that set the course for the West's unrivaled rise of prosperity:
  • 'Hyperspecialization' and the Future of Work

    MIT Sloan School of Business professor Thomas Malone says the information age has brought about a new phenomenon in the workplace. Writing in the Harvard Business Review ----with co-authors Robert J. Laubacher , and Tammy Johns --Malone calls the new dynamic "hyperspecialization." With the ability to communicate across the world in real time, workers can collaborate like never before. And that means that businesses no longer have to find generalists--people who can handle a wide variety of tasks. Rather, specialists can team up on projects, with each worker's specific skills complementing those of others on the team. Of course, there are echoes of the early days of industrialization in this new collaborative workplace--and Malone refers to Adam Smith's prediction that the division of labor would come to define business structures. Here is Malone discussing the impact of the division of labor in today's workplace on the way companies do business in Harvard Business Publishing's IdeaCast : Read The Big Idea: The Age of Hyperspecialization here .
  • Economists' Favorite Economists

    In a survey of nearly 300 economists, conducted by Econ Journal Watch , Adam Smith was rated the favorite pre-Twentieth Century economist in a landslide. Keynes won the vote for Twentith Century economists, with Milton Friedman a close second. But the real bragging rights go to the favorite economists of today. Here are the results of the favorite living economists. First, those aged 60 or older: And those living economists under 60: Read the full survey results here . (Hat tip to Greg Mankiw . He may have only come in second among the younger living economists, but he does author the econoblog of choice among economists .)
  • Fairness vs. Self-interest

    This slideshow from the Carnegie Council is a good conversation starter on a classic debate: fairness vs. self-interest. Carnegie's William Vocke asks, "What do you think maximizes individual benefits? Is it cut throat competition or altruistic norms of fairness and trust?":
  • Adam Smith in 10 Minutes

    Chris Berry teaches Political Theory at the University of Glasgow . And if you give him 10 minutes, he'll give you an interesting summation of the life, theories, and influence of the University of Glasgow's most famous scholar--Adam Smith. Here's an excerpt: The seeds of Smith's two great books were sown in his professorial years. The Theory of Moral Sentiments appeared in 1759 and drew on his lectures. It went through six editions in his lifetime. Smith’s intellectual range as a lecturer was extensive. Beyond courses in philosophy and jurisprudence he also discussed history, literature and language. He maintained his interest in science and wrote an essay on the history of astronomy. This is notable not only for the breadth of Smith’s knowledge but also as an attempt to link the development of different astronomical accounts to a basic human propensity to seek order. Although his second great book the Wealth of Nations was published in 1776 we know that he had already considered many of its leading themes at Glasgow as he lectured on as he put it: 'those arts which contribute to subsistence, and to the accumulation of property, in producing correspondent movements or alterations in law and government'. In 1787 Smith was elected Rector of the University and in a letter of thanks remarked that he remembered is professorial days as 'by far the most useful and therefore as by far the happiest and most honourable period of my life'. If Smith of popular repute is the ‘father of capitalism’, the advocate of ‘market forces’, the enemy of government regulation and believer in something called the ‘invisible hand’ to produce optimum economic outcomes then he would be a disappointed parent. All his work is deeply steeped in moral philosophy. Indeed the simple fact that the final edition of the Moral Sentiments containing extensive revisions appeared in 1790, the year of his death, tells us is that Smith’s commitment to the moral point of view endured alongside and beyond the publication of the Wealth of Nations. The Moral Sentiments is a leading example of a particular approach to moral philosophy – one that regards it not as sets of rationally or Divine ordained prescriptions but as the interaction of human feelings, emotions or sentiments in the real settings of human life. In many ways it is a book of social and moral psychology. What we can call economic behaviour is necessarily situated in a moral context. But more than that the key theme of the book is an opposition to the view that all morality or virtue is reducible to self-interest. Indeed his opening sentence declares that everyday human experience proves that false, he writes: "How selfish soever a man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derive nothing from it except the pleasure of seeing it". You can read or watch the full 10-minute speech here . (H/t Gavin Kennedy )