Paul Samuelson

Paul Samuelson
Paul Samuelson.jpg
Samuelson in 1997
Born
Paul Anthony Samuelson

(1915-05-15)May 15, 1915
DiedDecember 13, 2009(2009-12-13) (aged 94)
InstitutionMassachusetts Institute of Technology
FieldMacroeconomics
School or
tradition
Neo-Keynesian economics
Alma materUniversity of Chicago (B.A.)
Harvard University (Ph.D.)
Doctoral
advisor
Joseph Schumpeter
Wassily Leontief
Doctoral
students
Lawrence Klein[1][2]
Robert C. Merton[3]
InfluencesKeynes • Schumpeter • Leontief • Haberler • Hansen • Wilson • Wicksell • Lindahl
ContributionsNeoclassical synthesis
Mathematical economics
Economic methodology
Revealed preference
International trade
Economic growth
Public goods
AwardsJohn Bates Clark Medal (1947)
Nobel Memorial Prize in Economic Sciences (1970)
Information at IDEAS / RePEc

Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist. The first American to win the Nobel Memorial Prize in Economic Sciences, the Swedish Royal Academies stated, when awarding the prize in 1970, that he "has done more than any other contemporary economist to raise the level of scientific analysis in economic theory".[4] Economic historian Randall E. Parker has called him the "Father of Modern Economics",[5] and The New York Times considered him to be the "foremost academic economist of the 20th century".[6]

Samuelson was likely the most influential economist of the later 20th century.[7] In 1996, when he was awarded the National Medal of Science, considered to be America's top science-honor, President Bill Clinton commended Samuelson for his "fundamental contributions to economic science" for over 60 years.[4] Samuelson considered mathematics to be the "natural language" for economists and contributed significantly to the mathematical foundations of economics with his book Foundations of Economic Analysis.[8] He was author of the best-selling economics textbook of all time: Economics: An Introductory Analysis, first published in 1948.[9] It was the second American textbook that attempted to explain the principles of Keynesian economics. It is now in its 19th edition, having sold nearly 4 million copies in 40 languages, including Russian, French, Greek, Slovak, Chinese, Portuguese, German, Spanish, Polish, Japanese, Czech, Vietnamese, Hungarian, Indonesian, Swedish, Croatian, Dutch, Turkish, Hebrew, Italian, and Arabic.[10] James Poterba, former head of MIT's Department of Economics, noted that by his book, Samuelson "leaves an immense legacy, as a researcher and a teacher, as one of the giants on whose shoulders every contemporary economist stands".[4]

He entered the University of Chicago at age 16, during the depths of the Great Depression, and received his PhD in economics from Harvard. After graduating, he became an assistant professor of economics at Massachusetts Institute of Technology (MIT) when he was 25 years of age and a full professor at age 32. In 1966, he was named Institute Professor, MIT's highest faculty honor.[4] He spent his career at MIT where he was instrumental in turning its Department of Economics into a world-renowned institution by attracting other noted economists to join the faculty, including Robert M. Solow, Franco Modigliani, Robert C. Merton, Joseph E. Stiglitz, and Paul Krugman, all of whom went on to win Nobel Prizes.

He served as an advisor to Presidents John F. Kennedy and Lyndon B. Johnson, and was a consultant to the United States Treasury, the Bureau of the Budget and the President's Council of Economic Advisers. Samuelson wrote a weekly column for Newsweek magazine along with Chicago School economist Milton Friedman, where they represented opposing sides: Samuelson, as a self described "Cafeteria Keynesian",[7] claimed taking the Keynesian perspective but only accepting what he felt was good in it.[7] By contrast, Friedman represented the monetarist perspective.[11] Together with Henry Wallich, their 1967 columns earned the magazine a Gerald Loeb Special Award in 1968.[12]

Biography

Samuelson was born in Gary, Indiana, on May 15, 1915, to Frank Samuelson, a pharmacist, and Ella née Lipton. His family, he later said, was "made up of upwardly mobile Jewish immigrants from Poland who had prospered considerably in World War I, because Gary was a brand new steel-town when my family went there".[6] In 1923, Samuelson moved to Chicago where he graduated from Hyde Park High School (now Hyde Park Career Academy). He then studied at the University of Chicago and received his Bachelor of Arts degree there in 1935. He said he was born as an economist, at 8.00am on January 2, 1932, in the University of Chicago classroom.[7] The lecture mentioned as the cause was on the British economist Thomas Malthus, who most famously studied population growth and its effects.[13] Samuelson felt there was a dissonance between neoclassical economics and the way the system seemed to behave; he said Henry Simons and Frank Knight were a big influence on him.[14] He next completed his Master of Arts degree in 1936, and his Doctor of Philosophy in 1941 at Harvard University. He won the David A. Wells prize in 1941 for writing the best doctoral dissertation at Harvard University in economics, for a thesis titled "Foundations of Analytical Economics", which later turned into Foundations of Economic Analysis. As a graduate student at Harvard, Samuelson studied economics under Joseph Schumpeter, Wassily Leontief, Gottfried Haberler, and the "American Keynes" Alvin Hansen. Samuelson moved to MIT as an assistant professor in 1940 and remained there until his death.[15]

Samuelson's family included many well-known economists, including brother Robert Summers, sister-in-law Anita Summers, brother-in-law Kenneth Arrow and nephew Larry Summers.

During his seven decades as an economist, Samuelson's professional positions included:

  • Assistant professor of economics at M.I.T, 1940, associate professor, 1944.
  • Member of the Radiation Laboratory 1944–45.
  • Professor of international economic relations (part-time) at the Fletcher School of Law and Diplomacy in 1945.
  • Guggenheim Fellowship from 1948 to 1949
  • Professor of economics at MIT beginning in 1947 and Institute Professor beginning in 1962.
  • Vernon F. Taylor Visiting Distinguished Professor at Trinity University (Texas) in spring 1989.

Death

Samuelson died after a brief illness on December 13, 2009, at the age of 94.[16] His death was announced by the Massachusetts Institute of Technology.[6] James M. Poterba, an economics professor at MIT and the president of the National Bureau of Economic Research, commented that Samuelson "leaves an immense legacy, as a researcher and a teacher, as one of the giants on whose shoulders every contemporary economist stands".[16] Susan Hockfield, the president of MIT, said that Samuelson "transformed everything he touched: the theoretical foundations of his field, the way economics was taught around the world, the ethos and stature of his department, the investment practices of MIT, and the lives of his colleagues and students".[17]