Tag Archives: investments

“[…] by pushing his jam always forward into the future, [the “purposive” man] strives to secure for his act of boiling it an immortality”

John M. Keynes thus criticized an excessive preoccupation with the future in his essay Economic possibilities for our grandchildren (1930). I was a bit puzzled by this, and the full quote does not really help:

The “purposive” man is always trying to secure a spurious and delusive immortality for his acts by pushing his interest in them forward into time. He does not love his cat, but his cat’s kittens; nor, in truth, the kittens, but only the kittens’ kittens, and so on forward forever to the end of cat-dom. For him jam is not jam unless it is a case of jam to-morrow and never jam to-day. Thus by pushing his jam always forward into the future, he strives to secure for his act of boiling it an immortality.

Helpfully, there is a Wikipedia page on the “jam tomorrow“.  It turns out that the jam reference comes from Lewis Carroll’s Through the Looking Glass (1871), in which the White Queen offers Alice to work in exchange for jam that she (Alice) will always receive tomorrow, i.e. never. Back to Keynes: Such forward-looking behavior is helping to solve the economic problem, but as soon as that is done (it will take at least 100 years), we can stop pushing the jam into the future.

(And presumably start eating it, though Alice says she does not care for jam, but perhaps that is another story.)

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Ragnar Frisch on economic planning

Ragnar Frisch in the early 1960’s had high hopes for future Soviet economic development:

The blinkers will fall once and for all at the end of the 1960s (perhaps before). At this time the Soviets will have surpassed the US in industrial production. But then it will be too late for the West to see the truth. (Frisch 1961a)

That is from an article by Sæther and Eriksen in the new Econ Journal Watch. The paper contains much more than this angle.

It must be said that it was quite common for economists at the time to believe that the Soviet Union had a sustainable system. For instance Paul Samuelson, who repeatedly pushed his predictions for when the American GNP would be overtaken by the Soviet GNP further into the future. If anyone knows about any modern Norwegian debate about this, I would be interested to learn about it.

H/t: MR, Arnold Kling.



Breakfast with Bill Gates

Do not be late. Bill Gates to the right.

Do not be late. Bill Gates to the right.

Breakfast meeting on Commercial Investments as a tool for Development,” organized by the think-tank Civita. 

Bill Gates, in Norway to try to secure continued funding for his foundation’s aid programs, started out by giving kudos to Norway’s wealth management strategy and aid generosity. He argued that it would be feasible for Norway to invest a small part of the oil money with a “dual goal” objective – investing in countries that are short on capital, and where the investments could both provide a financial return and help financing needed basic infrastructure (electricity, roads, agriculture). He ducked a couple of hard issues. On a question from Paul-Christian Rieber on how to deal with oppressive regimes, he said that it was up to the national governments themselves to set their own rules and that he believed in engaging with most countries. I wished he had been more specific about how to engage. On a question from journalist Maria Berg Reinertsen on challenges related to taxation, Gates only said that planning was fair. A more helpful response was given by State Secretary Jon Gunnar Pedersen, who pointed out that tax issues had to be dealt with at an international government level. Pedersen cut a good figure, and also noted that the pension fund already do have investments in the areas that Gates were talking about, such as Sub-Saharan Africa, and that we have Norfund, a government fund whose aim is specifically to invest for development.

While this meeting was about investments, Gates’ next meeting of the day was with the new Prime Minister. Probably hoping that her people would note, he was crystal clear that aid was much more important.