Robert Lucas, Nobel Prize Winner

Robert Lucas, Nobel Prize Winner

We get inspired by BIG PROBLEMS.

Nobel Prize winning economist Robert Lucas nicely summarised this: he was comparing the growth rates of various nations over the past 20 years (this was in 1988) — Japan, 7.1 percent, Egypt, 3.4, U.S., 2.3, India 1.4). Lucas writes:

"I do not see how one can look at figures like these **without seeing them as representing possibilities. Is there some action a government of India could take that would lead the Indian economy to grow like Indonesia's or Egypt's? If so, what exactly? If not, what is it about 'the nature of India' that makes it so? The consequences for human welfare involved in questions like these are simply staggering: Once one starts to think about them, it is hard to think about anything else."- On the Mechanics of Economic Development." Journal of Monetary Economics. 22 July, 1988