The economic consequences of Arvind Subramanian’s grandchild

Mans Chakravarty has a tongue in cheek piece:

The economics profession is in a tizzy. Chief economic adviser Arvind Subramanian’s announcement that he was quitting his post because he was expecting a grandchild in the US in September has bitterly divided economists.

Some have speculated whether there could be other reasons for Subramanian’s exit. An economics student, for instance, wondered aloud whether Arvind Subramanian, Arun Jaitley and Piyush Goyal constitute—what in economics is known as—the impossible trinity. Some believe Goyal to be exogenous variable that upset the general equilibrium. But ceteris paribus, we must take Subramanian at his word.

A guilt-ridden macroeconomist, shedding tears of repentance, regretted he had missed his daughter’s childhood because he was busy giving lectures on free markets. “I thought the invisible hand would take care of it,” he sobbed.

But many of his colleagues disagree. “It’s a matter of comparative advantage,” said a trade economist. “Does Subramanian think he has a comparative advantage in nappy changing or gurgling and cooing to his grandchild, rather than being a chief economic adviser?” he asked rhetorically. He claimed global productivity would rise if everybody did the things they were good at—economic advisers at dishing out economic advice and baby-sitters at baby-sitting. Adam Smith, he said, was a firm believer in division of labour, subtly adding there is no record of Smith having played with his grandchildren.

Read the whole thing 🙂

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One Response to “The economic consequences of Arvind Subramanian’s grandchild”

  1. trade economist Says:

    There would be a term for tweeting while trending, if there isn’t it might not be untrue to call it glib self promotion. Despite signalling being adept with the field colloquial and basis, there is absolutely nothing to be taken from the piece. It is in good humor, no doubt, but would love to have it such a discussion in tapri, classsroom not in livemint!

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