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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
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Some History on Supply Side Economics

02 January 2017 | Pago Pago, American Samoa
Kimball Corson
Some History on Supply Side Economics

One of my teachers, Nobel Laureate Robert Mundell, developed supply side economics largely as a mental exercise and as a spoof on republicanism. As his many appearances on the Letterman show indicate, he has quite a sense of humor. In truth, Mundell is a leading Keynesian and a co-developer of the Mundell-Fleming model adding exchange rates to the classical IS-LM Keynesian model. He was one of my teachers for Keynesian economics at Chicago.

Mundell used to joke that in politics he was best known for tax cuts and supply-side economics, but in economics, it was for his work on currency areas, Keynesianism, international exchange rates, and international economics, both of the latter as extensions to the Keynesian system. He was chagrined when he won the Nobel Prize for all of that work, including supply side economics!

Yet he could keep a straight face as he did when he gained notoriety for supply side economics and became Ronald Reagan's economic advisor and lectured him and his staff on supply side economics. However, looking, back Reagan ran a gargantuan Keynesian deficit coming out of the 1981 recession and America's economy boomed for a decade. Ah, to have been a fly on the wall through it all.

Yet Mundell could be very honest, too. I once asked him a hard economic question that had been bothering me. He thought about it for a minute, looking out a window, and then turned to me and said, "I don't know."

Mundell also gave some great advise on how to accept a Nobel prize, by saying,“The Nobel prize is a big deal. In the academic world, it’s the ultimate prestige. My advice: Do your best to be profound—it is, after all, a roomful of profound thinkers—but don’t try too hard. See if you can make people laugh a little; I sang a verse from My Way, and that seemed to do the trick. And make it personal; I invited the entire room to my son’s wedding to break the ice.”

Then, there was the famous Milton Friedman-Robert Mundell debate between two of my teachers in 2001 centering on exchange rates. As MIT's Rudi Dornbusch described it: 'It was a gladiator event, a workshop where Mundell and Friedman really got at each other. Friedman obviously admired the sheer creativity and knowledge of Mundell, but would not let him get by, sparks flew. Mundell recognized Friedman as an icon but understood that he could play the bad boy with success. Then came the moment that took breaths away. It was the unspeakable from Mundell: “Milton, the trouble with you is you lack common sense.'”
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
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Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ