Paul Samuelson, Let those who will write the nation’s laws – if I can write the its textbooks. Economists have correctly predicted nine of the last five recessions. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. In this age of specialization, I sometimes think of myself as the last generalist in economics Funeral by funeral, theory advances. BA, Chicago, 1935 PhD, Harvard, 1941 –Foundations of Economic Analysis, published 1947 M.I.T – –Radiation Lab –Economics text 1 st edition, th edition, 2007 –Clark Medal 1947 –Nobel Award 1970

Paul Samuelson, Notable Concepts Mathematical economics: constrained optimization Revealed preference Factor price equalization The transfer problem: improved on Hume Economics of public goods Turnpike theorem for growth Overlapping generations framework Randomness of speculative prices  efficient market hypothesis The U.S. Phillips Curve (with Solow)  a policy menu? –1964 Kennedy – Johnson Tax Cut –1968 Vietnam War Surtax “…Adam Smith gave two resounding cheers for individualism; but for state interference of the pre-19 th century type he could muster only a bronx cheer. Make no mistake about it, Smith was right. Most inter- ventions into economic life by the State were then harmful both to prosperity and freedom…Good inten- tions by government are not enough; acts do have consequences that had better be taken into account…”

Keynesian Pantheon Alvin Hansen “The American Keynes” Economic Policy and Full Employment, 1946 A Guide to Keynes, 1953 Ragnar Frisch, 1895 – 1973 Econometrics, “Macroeconomics” Nobel Memorial Prize, 1969 Jan Tinbergen, 1903 – 1994 First econometric model Nobel Memorial Prize, 1969 Simon Kuznets 1901 – 1985 Nobel Memorial Prize, 1971 National Income and Its Composition: , John Hicks 1904 – 1989 Nobel Memorial Prize, 1972 Mr. Keynes and the Classics, A Suggested Simplification, Econometrica, 1937.

Keynesian Pantheon Lawrence Klein 1920 – Clark Medal, 1959 Nobel Memorial Prize, 1980 A Textbook of Econometrics, 1953 The Empirical Foundations of Keynesian Economics, 1954 An Econometric Model of the United States: 1929 – 1952, 1955 An Introduction to Econometrics, 1962 James Tobin 1918 – 2002 Clark Medal, 1955 Council of Economic Advisors, Nobel Memorial Prize, 1981 Liquidity Preference as Behavior Towards Risk, Review of Economic Studies, 1958 Tobin q / Tobin tax Walter Heller, 1915 – 1987 Chair, Council of Economic Advisors, Franco Modigliani 1918 – 2003 Nobel Memorial Prize, 1985 Liquidity Preference in the Theory of Interest and Money, Econometrica, 1944 The Life Cycle Hypothesis of Saving, AER,1963 MPS: MIT-Penn-System Model

Keynesian Pantheon Robert Solow, 1924 – Clark Medal, 1961 Council of Economic Advisors, Nobel Memorial Prize, 1987 A Contribution to the Theory of Economic Growth, QJE, 1956 Analytical Aspects of Anti-Inflation Policy (with Samuelson), 1960 A.W. Phillips, 1914 – 1975 Paul H. Douglas, 1892 – 1976 “…the greatest of all Senators” Martin Luther King U.S. Senator (Illinois), Chair, Joint Economic Committee A Theory of Production (with Cobb), AER, 1928 Real Wages in the United States, 1930 The Theory of Wages, 1934