Paul Samuelson 's Erroneous Prediction Of Soviet Growth

3265 Words14 Pages
Paul Samuelson’s Erroneous Prediction of Soviet Growth
Paul Samuelson, the regarded Neo-Keynesian who among other well-received publications gifted the world it’s most popular economic textbook, which provided the world’s scholars an innovative, comprehensive catalogue of economic ideas. Millions of successful sales, and publication in various languages only cemented its dominance in the textbook and educational industry. This great success was not without some blunders, however. Starting in his 1961 edition of Economics, Samuelson first published a graph and accompanying text predicting the future growth of the Soviet Union, and comparing it to that of the United states. At the time, he gauged that the economic output of the USSR was at half that of the US, and though for this first, and several following editions, he suggested higher growth rates in the USSR, the ratio of economic output stayed relatively the same until the fall of the Soviet Union. In 1989, the year of the fall of the Berlin wall, in his 13th edition of his Economics Samuelson can be quoted, “The soviet economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive.” In this paper I will examine Samuelson’s ideas regarding the Soviet Union’s economy, what the economy really way, how it matched up to economist’s expectations, and what lessons can be learned from this experience. For the static underlying ideas of this article,

    More about Paul Samuelson 's Erroneous Prediction Of Soviet Growth

      Get Access