Wednesday , December 1 2021

Sowell Nobel?

Summary:
There is less than a week to go before the Economics Nobel Prize. Dear Nobel Committee: How can you not give the prize to Tom Sowell this year? Tom's work evidently merits a Nobel purely as a contribution to economics, covering many issues. But we can't ignore what year it is, and what's going on in the ...

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There is less than a week to go before the Economics Nobel Prize. 

Dear Nobel Committee: How can you not give the prize to Tom Sowell this year? 

Tom's work evidently merits a Nobel purely as a contribution to economics, covering many issues. But we can't ignore what year it is, and what's going on in the world. Indeed, in the Physics and Chemistry prizes this year, as well as Nordhaus' climate-economics Nobel, the Prize committees show they care about research that applies to hot-button problems. Race is a screaming issue of our time. How can you not give the prize to the living economist who has written the most penetrating economic analysis of race? 

Oh, yes, he's free-market, and thus characterized as conservative. His deeply fact-based research is  uncomfortable to The Narrative. For example, groups that white people cannot tell apart have profoundly different outcomes in the US. Nigerian immigrants are among the highest achieving ethnic groups in the US. West Indians do well. Asians of different waves of immigration and different countries -- Chinese, Laotians, Vietnamese -- show profound differences. Tom has thousands of such facts, impeccably documented. 

But you're the Nobel Committee. You care about Science, not about cheers from the Davos crowd. You care about issues that are important, as you should, but you do not care about embracing one or the other political narrative's answers to those questions. You care about the reputation of your Prize, for courageously recognizing great research, even if its surprising conclusions upset established orders. And, to your credit, you have given the prize to economists of widely different political enthusiasms through the years.  

You're not, say, the American Economics Association, whose  statement from the American Economic Association Executive Committee, still up on its website, and referenced in mandatory DEI training, reads 

We encourage all economists to seek out existing scholarship on race, stratification economics, and related topics. To get us started, our AEASP and CSMGEP colleagues and students are compiling a reading list on racism and the experience of Black Americans. Members of the AEA Executive Committee have pledged to continue to educate themselves in part by reading works from the list and to seek to integrate work by diverse authors in course syllabi, and we ask all economists to make the same pledge.

The officially-endorsed reading list, though updated, to this day brazenly omits Sowell. Or Walter Williams. Or Glenn Loury. Or Roland Fryer. (Committee, if you're looking for others to share the prize, here are some suggestions!) If  you must, as you sometimes do, you may shrink from controversy by pairing the prize, Hayek and Myrdal; Fama and Shiller. But give Tom the prize. 

Yes, Tom's work is empirical, neither full of equations of theory or econometrics. (Though Knowledge and Decisions is an excellent pice of theory.)  Tom writes books. Well, maybe it's time to celebrate persuasive fact-based books as well as the more standard approaches, as you also have done in the past. 

While Tom is hardy, he is 91. None of us last forever. Nor does your opportunity to recognize one of the most important economists of our time. This is the year. 

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Update: If you don't know Tom, and don't want to face an overwhelming volume of primary sources, his Wikipedia page is not bad. Twitter commenters complain that he appears on Fox News. Well, Paul Krugman appears in the New York Times. Within a respectable range, really, we need to start keeping political commentary separate from scientific contribution, like other hobbies. 

John H. Cochrane
In real life I'm a Senior Fellow of the Hoover Institution at Stanford. I was formerly a professor at the University of Chicago Booth School of Business. I'm also an adjunct scholar of the Cato Institute. I'm not really grumpy by the way!

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