Epstein Secrets

zero just as buildings do. Yoram Ben-Porath combined these ideas and more in a masterly life- cycle model published in 1967. We'll get to it soon. Schultz called the part of consumption exhausted in taste satisfaction “pure consumption”. The part invested in human capital was “pure investment”. I change

Wealth of Nations published in 1776, proposed growth by belt tightening. Most tradition has agreed, with the proviso that new ideas must come first. Solow raised doubts about the role of consumption restraint, but stopped short of denying a need for it. Mill acknowledged both ways to grow. My charts and

twice. Chapter 4 will restate it in terms of total including human capital just to make sure. It is an unsettling argument either way. It unsettled Solow. Chapter 2 showed why. Weare probably more comfortable to think of income as something known which we can slice into consumption and saving slices a

realized, as it were, in his person. The conversion of some consumption into human capital was a favorite theme of Frank Knight a generation before Schultz. Only the rest is what Schultz called pure consumption eliminated from the economy in satisfying tastes. Becker added in 1964 that this investment mu

te for eight nations over four to fourteen decades. They will show the same for dividends when we come to that. Economists would be less surprised. Solow has prepared them for the news. In 1956 and 1957 he showed evidence that most growth is not explained by capital accumulation, or saving through cons

Bawerk and the Austrian school are underrated. The pantheon might have room for him. Am I being too tough on later economists? We should not forget Schultz and Ben- Porath. Schultz’ greatest achievement, unless Mincer beat him, was in spotlighting human depreciation. That left me to ask where this huge f

Macroeconomics 2/8/16 23 HOUSE_OVERSIGHT_011112 I would tax capital gains as much as ordinary income for the same reason. Level the playing field. Solow saw most of the truth, but didn’t go far enough. Mill saw more. And even Mill stopped short. All we have to do is look at the charts and tables. Capi