The 2024 Nobel Prize in Economics: Explained

Why do some nations flourish while others remain trapped in poverty? This year’s Nobel Prize in Economics goes to three economists whose groundbreaking work explores this very question. Join us as we dive into the theories and insights of Daron Acemoglu, Simon Johnson, and James A. Robinson, who have helped shape policy across the globe with their research on economic growth and inequality.

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[tinnic]

I keep seeing comments like, "This seems obvious" or "seems like commonsense" when the video itself explained why this was ground breaking. Correlation does not imply causation, not to mention that many other people claim other things. I.e. geography, racial supremacy and stuff like that. These guys won the Nobel Prize because they gathered data to demonstrate causation and definitively show that trust in institutions is what leads to good economics.

[oriaphyn]

So basically game theory where both sides play fair produce the richest economies.

[juselara]

Fun fact: Professor Robinson has a particular fondness for my Home country of Colombia and he is a regular guess professor at my university, University of Los Andes in Bogotá. I had the privilege to assist a couple of classes with him and got so invested in his theory. So much that, I went and buy his book and loved every page of it and because of that I got really interested in economics and that way I found your channel!.

[MrDwillink]

I read the book a few months ago. Nice summary but everyone should read the book to be honest. One important aspect you didn’t mention is creative destruction. The fact that innovation often comes at the expense of encumbents. So countries ruled by small minorities stifle innovation or adoption of new technology (which leads to wealth creation) in order to stay in power.
What I find interesting is you can apply this to your own life as well. Generally humans are resistant to change or adoption of new ideas or ways of thinking. Once we ‘know what we know’ we avoid learning new skills or adopting new ideas that would creatively destroy our existing paradigm but would otherwise lead to greater success. I guess generally it’s just good to maintain curiosity and keep an open mind

[pierresaslawsky]

When an idea so impactful and easy to understand receives a Nobel prize, it’s sure that that a colossal amount of work went into it. Thank you for explaining it so clearly.

[daniel_rossy_explica]

I guess the book explains well why Argentina is still poor. We have almost no trust in our instututions, or our own people. Recently I left an umbrella unattened on the street. I realized a few minutes later, but by the time I returned, it was already gone. My japanese teacher told me then than, in Japan, the umbrella would still be there. People in Argentina see something they can take, and just take it. This applies to not only people on the street but also politicians who can't see beyond their noses.

[dwayne]

I swear every Economics student remembers these guys! Amazing contribution, and so very well deserved

[cybrzero]

I really appreciate the background footage for these videos, just simple enough to not distract from the script, and way better than a PowerPoint or any other text on the screen.

[siddharthtripathy]

In the book why nations fail, authors also question effectiveness of IMF contributions to struggling countries, without changing the political landscape. Gives the example of Zimbabwe which went from worse to worst despite IMF support

[chuckoffcampus]

The grandfather of research on the contribution of institutions to economic growth was a University of Maryland professor named Mancur Olson, and his book The Rise and Decline of Nations, published in 1982.

[rigell]

It all boils down to honesty and trust. If you have an honest society that treats each other right then the nation will succeed.

[coalnel]

Aye Acemoglu, Johnson, and Robinson finally got a Nobel prize. They are legendary in my economic history class. I have their book and it's great.

[zmark]

as a backyard thinker, like this is rather intuitive if you think about it, sociey's most improtant part is the people, if the people is being organized in a good/fair way, the society benefits from it, but like the video said, great job doing the hard work to acturally prove it, and congratulations on getting reconized for that

[beatrizgarcia]

I can’t believe this and I’m kind of emotional right now! The name Acemoglu sounded very familiar so I just realised that last year I had an assignment based on a paper that was written by Acemoglu, Hassan and Tahoun (The power of the street: Evidence from Egypts Arab Spring) and I really liked that working on that assignment and now he just won a Nobel Prize! It’s amazing! Congratulations🎉❤

[RedRipeRaspberries]

Colonial history never ceases to depress me

[stevesmith]

For me it is quite obvious that good institutions can give rise to rich economies. But what is not so obvious to me is the question: What gives rise to good institutions?

[will_be_like]

When I heard Acemoglu got the prize, I was like: 'woah, that's the guy I used in half my poli-sci papers'.

[markgoodwin]

This is great to see! Read “Why Nations Fail” years ago. It was referred to me by a retired Economics Professor here in Australia. Loved it. So clear and logical.

Another wonderful source is Prof Paul Collier, who established the Blavatnik School of Government in Oxford. Collier wrote “The Bottom Billion” and many other wonderful books. Reaches broadly similar conclusions - but came out before “Why Nations Fail”.

[henriquebavaresco]

Dude this is so sad, basically those who suffered the most in the past are the ones who will continue to suffer in the present and the future. As someone who lives in a developing economy, just sad.

[Alitheone]

I read the book. It is extremely insightful and well written. Would highly recommend