by Sandy Ikeda
A full-page article in today’s Wall Street Jounal begins:
At the Heavenly Models home for deceased economists, an award is being presented to the resident whose work best explains financial crises, global warming, and other pressing issues of today.
The winner, according to author John Cassidy, is A.C. Pigou, the new flavor of the day.
The article implies that Pigou was the first to articulate the concepts of externalities and market failure. I’m not sure that’s right, though I haven’t gotten around to reading The Economics of Welfare, but I believe we do have to credit him with the Pigou tax. So in some ways he’s been almost as dangerous as his “smarter colleague,” although I’ve always felt sympathy for someone who was so much in Keynes’s shadow.
The article also has a sidebar quoting Mises (as well as Friedman, Kindleberger, and of course Keynes) apparently calling last year’s economic crisis.