The Unassuming Economist

From Noah Smith:

“Immigration is obviously one of the most important and most contentious issues of our time. The sheer amount of confusion, misconception, and misinformation is just staggering. So when I want to know the hard facts on the immigration issue, I go to Princeton economist Leah Boustan.

Boustan’s research covers far more than immigration — she’s incredibly versatile, covering labor economics, urban economics, economic history, and more. But recently, her research on immigration has garnered a lot of (well-deserved) attention. In a series of recent papers, she and her various co-authors showed that 1920s immigration restrictions hurt native-born American workers, that immigrant groups give their kids less foreign-sounding names over time, that immigrants do better economically when they move out of ethnic enclaves, and that the children of poor immigrants tend to be extremely upwardly mobile.

In her new book with Ran Abramitzky, Streets of Gold: America’s Untold Story of Immigrant Success, Boustan draws from her own research and others’ to weave a nuanced yet compelling story of how immigrants fare in the United States — and how little this has changed between the early 20th century and the early 21st. It’s a great book, and I highly recommend it to everyone.

In this interview, I ask Leah about her book, and about the immigration issue in general. Enjoy!

N.S.: I’ve been following your work for years, and you’re my favorite economist of immigration. How did you first become interested in that topic?

L.B.: First, thank you! That is so kind to say and I have appreciated all of your engagement with our work through the years. I will always associate the “before times” (immediately pre-Covid) with being able to meet in person at the ASSA conference in Jan 2020.

So, how did I become interested in immigration? Well, my first book was on the black migration from the rural South to industrial cities in the North and West (the Great Black Migration). I got interested in this topic when reading William Julius Wilson’s The Truly Disadvantaged and encountering a paragraph with what seemed like an aside, but it really is a gem of an idea. Wilson said something like “ironically, European immigrants benefited from the closing of the US border in the 1920s, but black migrants faced a lot of competition because you can’t close the Mason-Dixon line.” (This is a paraphrase!). I thought to myself – wow – I always knew about white ethnic communities in US cities, but I never really thought of the black community as a *migrant* community. So what if we – as economists – really study African-American history as migrant history? My first book was called Competition in the Promised Land, which picks up on this idea.

It was pretty natural after that to turn my attention to studying European immigrants in the late 19th and early 20th centuries. Sociologists like Wilson and like Stanley Lieberson explicitly or implicitly compare white ethnic progress with African American progress. So, after working for some time on black migrants, I wanted to learn more about European immigrants as well.”

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From American Enterprise Institute:

“One of my two all-time most favorite economists—Dr. Thomas Sowell— turns 92 tomorrow, he was born on June 30, 1930. Here is Thomas Sowell’s webpage and here is his Wikipedia entry. Milton Friedman (my other all-time favorite economist) once said, “The word ‘genius’ is thrown around so much that it’s becoming meaningless, but nevertheless I think Tom Sowell is close to being one.”

In my opinion, there is no economist alive today who has done more to eloquently, articulately, and persuasively advance the principles of economic freedom, limited government, individual liberty, and a free society than Thomas Sowell. In terms of both his quantity of work (49 books and several thousand newspaper columns) and the consistently excellent and crystal-clear quality of his writing, I don’t think any living free-market economist even comes close to matching Sowell’s prolific record of writing about economics. And as I’ve mentioned previously on CD, as a writer Thomas Sowell is truly the “Master of Idea Density”—he has the amazing talent of being able to consistently pack more ideas, insight, and wisdom into a single sentence or paragraph than what typically takes an entire essay or book for even the best writer!

Even in his 80s, Thomas Sowell remained active and was writing two syndicated newspaper columns almost every week for the last 25 years until he “retired” from those weekly deadlines at the end of 2016 (see CD post here). On his birthday last year at the age of 90, Thomas Sowell released his 49th book “Charter Schools and Their Enemies” which amazingly was his 11th book since 2010 and his 24th book since the turn of the century! To honor Thomas Sowell’s 92nd birthday tomorrow, I present below 15 of my favorite quotations from Dr. Thomas Sowell and three bonus videos of the great economist:

 1. Knowledge. “The cavemen had the same natural resources at their disposal as we have today, and the difference between their standard of living and ours is a difference between the knowledge they could bring to bear on those resources and the knowledge used today.”

2. Obamacare. “If we cannot afford to pay for doctors, hospitals, and pharmaceutical drugs now, how can we afford to pay for doctors, hospitals, and pharmaceutical drugs, in addition to a new federal bureaucracy to administer a government-run medical system?”

3. Economics vs. Politics I. “Economics and politics confront the same fundamental problem: What everyone wants adds up to more than there is. Market economies deal with this problem by confronting individuals with the costs of producing what they want and letting those individuals make their own trade-offs when presented with prices that convey those costs. That leads to self-rationing, in the light of each individual’s own circumstances and preferences. Politics deals with the same problem by making promises that cannot be kept, or which can be kept only by creating other problems that cannot be acknowledged when the promises are made.””

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Profile by John Fernald (INSEAD and Federal Reserve Bank of San Francisco):

“Dale W. Jorgenson has been a central contributor to a wide range of economic and policy issues over a long and productive career. His research is characterized by a tight integration of economic theory, appropriate data that matches the theory, and sound econometrics. His groundbreaking work on the theory and empirics of investment established the research path for the economics profession. He is a founder of modern growth accounting: Official statistics in many countries, including the United States, implement Jorgenson’s methods. Relatedly, without Jorgenson’s unflagging efforts, consistent industry KLEMS datasets for many countries—which have been widely used in recent decades for growth accounting, econometrics, and other applications—would not exist. Jorgenson is also a pioneer in econometric modeling of producer and consumer behavior and of econometrically estimated, intertemporal general equilibrium modeling for policy analysis.”

Also, see an article in the Wall Street Journal by James R. Hagerty: “Harvard Economist Dale Jorgenson Found Better Ways to Gauge Productivity. Professor, who has died at age 89, removed much of the mystery from studies of what drives economic growth”.

From Housing Wire:

“Frank Nothaft, chief economist at CoreLogic and before that, the top economist at Freddie Mac, has died. He was 66.

At CoreLogic, Nothaft headed the office of the economist, providing analysis, commentary and forecasting trends in global real estate, insurance and mortgage markets. Prior to joining CoreLogic in 2015, Nothaft had a nearly 30-year career at Freddie Mac, where he was most recently the chief economist.

“When I arrived at Freddie Mac in 2012 he was a long-established major name in mortgage research,” said Donald Layton, who was CEO of Freddie Mac from 2012 to 2018. “It was always a pleasure to work with him because he was truly a nice individual.”

Before joining Freddie Mac, Nothaft was an economist with the Board of Governors of the Federal Reserve System, where he served in the mortgage and consumer finance section and assisted Gov. Henry Wallich.

During his career, Nothaft often was called upon to provide expert commentary on national television and at industry trade conferences, explaining the workings of the housing market for both industry-focused and general audiences.

“Most people knew Frank as one of the nation’s premier housing economists,” said Robin Wachner, a CoreLogic spokesperson. “He was also an outstanding leader and one of those extraordinary people who was loved and admired by everyone who was lucky enough to know him.”

From 2010 to 2015, he was on the faculty at Georgetown University School of Continuing Studies, where he taught urban real estate economics. He was a past president of the American Real Estate and Urban Economics Association and served on the board of directors of the Financial Management Association.

Nothaft was well-liked by fellow economists studying the housing market, as well as his colleagues, who described him as straightforward and prizing accuracy. But he was also known for his quirky sense of style.”

From the Institute for New Economic Thinking (by Arjun Jayadev):

“Axel Leijonhufvud showed economists a promising path forward. They should have taken it. Leijonhufvud passed away on May 5, 2022

C an we theorize the economy as an entity that is growing, evolving, never in equilibrium? An economy passes through periods of intense instability and groping towards an uncertain future as a matter of course? How might one begin?

 “The pretense that we know the future probabilistically as a given set of probability distributions of every damn thing is, I think, a pretty dangerous delusion, but it’s also a comforting one to some people.”

The year was 1967. Young Axel Leijonhufvud sat in front of a pile of papers, full of unfinished notes, half-worked through arguments and intellectual dead-ends that he had been at for nearly four years. Two years into a tenure track position in the economics department at the University of California Los Angeles, he seemed unable to fashion a coherent dissertation from the morass of ideas in the sprawl. This year was his last chance to do so if he wanted to remain in academic employment.

The Swedish émigré had rather immodestly and perhaps unwisely decided that his doctoral work should be on some of the deepest problems of macroeconomics: why was it that the capitalist economy sometimes fails calamitously, and why was it that the Great Depression (still very much in the public memory in the 1960s) had been so very different from ordinary recessions? In trying to understand that defining period of the 1930s he had undertaken a wide range of reading of earlier economists, including a closer reading of the ur-text of the discipline –the General Theory of Employment, Interest and Money by John Maynard Keynes.”

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