Jonathan: You’ve often spoken about your aha [00:01:00] moments when delving into ancient economic history. I just wonder what have been some of your profound or unexpected discoveries about studying ancient civilizations like Sumer or Babylonia?
Michael Hudson: My, entire life, ever since I became an economist in, the 1960s was to realize that debt was the major problem that was going to be growing exponentially and stifling society. And it was clear that debt grew at compound interest faster than the economy was able to grow and pay the debts.
And I began to write a history of debt, after I left the United Nations in 1979 after warning that there was going to be a, third world, Latin American debt crash in a few years, as indeed there was in 1982. I got all the way back to Greece and Rome, and then into the biblical, and came across the jubilee year. (...)
So I began to write up my ideas, shared them with a friend of mine, Alex Marshak, a professor at Harvard. He introduced me to the head of Harvard’s anthropology and archeology department. I was made a research fellow at the Peabody Museum by Carl Lambert Klowski. I realized that there was this wealth of Babylonian, Sumerian, and near [00:04:00] Eastern, academic records that economists had completely ignored.
And the reasons that our economists ignored it was that the way that society created its economic relationships were completely different from those that they ended up with after Greece and Rome. And so I realized that I can’t simply write this all up myself because I’m an economist, not an Assyriaologist.
So at Harvard we decided to organize a group of scholars who were specialists in Sumerian, Babylonian, Egyptian, Judaic and other Middle Eastern records and we decided to do three volumes.
by Jonathan Brown and Michael Hudson, Naked Capitalism | Read more:
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[ed. See also: The Bull Market for Economists Is Over. It’s an Ominous Sign for the Economy (NYT). Thinkng of commissioning some new t-shirts: Cognitive Dissonance is Killing Me ©]
Last year, the average base salary for newly hired economics professors at major research universities was more than $150,000, according to the American Economic Association, and their compensation swelled to about $200,000 once bonuses and summer pay were included. As recently as the 2023-24 academic year, the employment rate for Ph.D. economists within a few months of graduation was 100 percent, said John Cawley, the chair of the association’s Committee on the Job Market, citing the group’s surveys. Job satisfaction topped 85 percent.
Those glory days seem to be ending. Universities and nonprofits have scaled back hiring amid declining state budgets and federal funding cuts. At the same time, the Trump administration has laid off government economists and frozen hiring for new ones. (...)
Tech companies also have grown stingier, and their need for high-level economists — once seemingly insatiable — has waned. Other firms have slowed hiring in response to the economic uncertainty introduced by President Trump’s tariffs and the possibility that artificial intelligence will replace their workers, even if those workers have a doctoral degree.
“The advent of A.I. is also impacting the market for high-skilled labor,” said Betsey Stevenson, a labor economist at the University of Michigan, in an email. “So the whole thing is kind of a mess.”
Of course, if it were only some egghead economists scrambling to find work, that might be not be terribly consequential. But the same forces bedeviling economists are crimping employment for other highly trained scientists and social scientists, as well as for many recent college graduates, whose jobless rate has been unusually high for an otherwise strong economy.
The drop in government payrolls and federal funding for universities and nonprofits alone is a major problem, since they support two to three times as many jobs for college graduates as for those without degrees. In some cases, workers with Ph.D.s are displacing others with master’s or bachelor’s degrees.
Then there is the potential impact on the country’s future. Marcia McNutt, a geophysicist who is president of the National Academy of Sciences, said a sharp drop in the number of research jobs in the hard sciences and social sciences would send Ph.D.s abroad. Their flight will deprive the government of the brainpower it needs to perform basic functions and leave U.S. firms less innovative and competitive.
“U.S. industry is incredibly dependent on the training that is done in colleges and universities,” Dr. McNutt said. “When the top people go elsewhere, we’ll be left with the B team in America.”
[ed. See also: The Bull Market for Economists Is Over. It’s an Ominous Sign for the Economy (NYT). Thinkng of commissioning some new t-shirts: Cognitive Dissonance is Killing Me ©]
***
"For decades, earning a Ph.D. in economics has been a nearly foolproof path to a lucrative career. Even as bearers of advanced degrees in history, English or anthropology struggled to find gainful employment, the popularity of economics as an undergraduate major created plenty of tenure-track teaching positions, while government agencies snatched up Ph.D. economists in bulk. Those looking for even larger paychecks could turn to tech companies, Wall Street and consulting firms, which bid up the price of economists as if they were a bespoke cryptocurrency.
Those glory days seem to be ending. Universities and nonprofits have scaled back hiring amid declining state budgets and federal funding cuts. At the same time, the Trump administration has laid off government economists and frozen hiring for new ones. (...)
Tech companies also have grown stingier, and their need for high-level economists — once seemingly insatiable — has waned. Other firms have slowed hiring in response to the economic uncertainty introduced by President Trump’s tariffs and the possibility that artificial intelligence will replace their workers, even if those workers have a doctoral degree.
“The advent of A.I. is also impacting the market for high-skilled labor,” said Betsey Stevenson, a labor economist at the University of Michigan, in an email. “So the whole thing is kind of a mess.”
Of course, if it were only some egghead economists scrambling to find work, that might be not be terribly consequential. But the same forces bedeviling economists are crimping employment for other highly trained scientists and social scientists, as well as for many recent college graduates, whose jobless rate has been unusually high for an otherwise strong economy.
The drop in government payrolls and federal funding for universities and nonprofits alone is a major problem, since they support two to three times as many jobs for college graduates as for those without degrees. In some cases, workers with Ph.D.s are displacing others with master’s or bachelor’s degrees.
Then there is the potential impact on the country’s future. Marcia McNutt, a geophysicist who is president of the National Academy of Sciences, said a sharp drop in the number of research jobs in the hard sciences and social sciences would send Ph.D.s abroad. Their flight will deprive the government of the brainpower it needs to perform basic functions and leave U.S. firms less innovative and competitive.
“U.S. industry is incredibly dependent on the training that is done in colleges and universities,” Dr. McNutt said. “When the top people go elsewhere, we’ll be left with the B team in America.”
~ The Bull Market for Economists Is Over. It’s an Ominous Sign for the Economy. Norm Scheiber
