In Theory, a Nobel to Make us Proud

By Lee Egerstrom, Economic Development Fellow, October 13, 2011 at 10:00 am

In theory, at least, Minnesotans should share a bit of pride in the work two new Nobel laureates did while on the faculty at the University of Minnesota.

As most would now know, former University economists Thomas Sargent and Christopher Sims were awarded the 2011 Nobel Prize for economics on Monday.

Sargent, now at New York University, was at the Minneapolis campus from 1971 to 1987 and Sims, now at Princeton University, was at the U from 1970 to 1990. Their prize winning work mostly done in Minnesota, and oversimplified here, looked at ways both monetary policy and fiscal policy impact economic growth and inflation.

Unfortunately, Minnesota's legislature has been disinvesting in education from kindergarten through post-doctoral studies, whacking away at budgets for all levels of public academia. Apparently they don't share our excitement about quality research and education at public institutions.

This is what makes pride in Sims' and Sargent's accomplishments more theoretical than practical.

We don't attract Nobel quality faculty when we disinvest in both education and research. We don't attract the best and brightest students from around the world if we don't support such faculty and ongoing research. We don't grow our state economy, invent new technologies and fight life-threatening animal and plant diseases without these faculty and students.   

But all that's been stated time and again by Nobel laureates and other profound economists. The problem comes when too many policymakers choose to ignore the message.  

Posted in Economic Development | Related Topics: Economic Growth  Higher Education  University of Minnesota