“Economics is the only field in which two people can get a Nobel Prize for saying exactly the opposite thing.”
This witty observation perfectly captures a common feeling about economics. It highlights a field filled with deep disagreements and competing ideas. Unlike hard sciences, economics often lacks single, universally accepted answers. Consequently, this quip has become a popular piece of academic folklore. It circulates among students, professors, and professionals alike. The saying points to a fundamental truth: economics grapples with complex human systems. Therefore, multiple, even contradictory, theories can gain significant influence and recognition. This post explores the fascinating origin of this famous line. We will trace its history and the real-world event that likely inspired it. Source
The Hunt for an Origin
The search for the quote’s author leads down a surprising path. It reveals a story rooted in early internet culture and academic humor. The journey shows how a clever idea can spread and evolve over time.
The First Digital Footprint
The earliest known appearance of the quip is on the internet. In May 1995, a user named “Robin Hood” posted it to a Usenet discussion group. . The post was a collection of economics-related jokes. However, “Robin Hood” did not claim authorship. This left the quote’s true origin a mystery. The digital trail provided a starting point but not a final answer. Source
Soon after, a Finnish economist named Pasi Kuoppamaki shed some light on the situation. He explained that the jokes came from his personal webpage. His site collected humorous submissions from people around the world. Unfortunately, he did not credit individual contributors. The original webpage no longer exists, making further verification impossible. Later that year, the San Francisco Chronicle featured Kuoppamaki’s collection. This article brought the anonymous quip to a much wider audience, cementing its place in popular culture.
The Nobel Prize That Launched a Thousand Jokes
While the quote’s first appearance was in 1995, its inspiration likely came two decades earlier. The 1974 Nobel Memorial Prize in Economic Sciences provides a perfect real-world example. The Swedish Academy gave the prestigious award to two economists with fundamentally opposing views: Gunnar Myrdal and Friedrich von Hayek. This decision beautifully illustrates the sentiment behind the famous quip.
. The Prize in Economic Sciences 1974
Myrdal was a Swedish economist who supported government intervention and central planning. He believed that states should actively manage markets to achieve social goals. In contrast, Hayek, an Austrian-British economist, was a fierce advocate for free markets. He argued that government interference distorts the economy and harms individual liberty. These two men spent their careers promoting entirely different economic worldviews. Honoring them simultaneously seemed, to many, a profound contradiction.
How the World Reacted
The joint award sparked considerable discussion. Time magazine diplomatically suggested the prize reflected a “pluralistic world” with room for diverse ideas. The Nobel committee’s choice was framed as a vote for intellectual diversity. However, not everyone was so diplomatic. A commentator in Challenge: The Magazine of Economic Affairs was much more direct. The writer noted that Myrdal and Hayek had been “advancing in opposite directions for the past fifty years.” The piece concluded that the Nobel committee must be “collectively insane” for honoring two scholars whose work essentially refuted each other’s. This sharp critique highlights the deep ideological divide the award represented.
The Quote’s Enduring Legacy
The Myrdal-Hayek prize created the perfect context for the quote to flourish. Over the years, the saying has been attributed to several people, though often without proof. For example, some sources credit a “Roberto Alazar,” but little is known about him. More recently, people have linked the quote to the famous economist John Kenneth Galbraith, but this attribution lacks solid evidence.
The quote’s power lies in its ability to capture a core tension within economics. It is a social science, not a physical one. Economists study human behavior, which is often unpredictable and complex. Therefore, different models can offer valid, yet conflicting, insights. For instance, Keynesian economics might recommend government spending to fight a recession. Conversely, Austrian economics might warn against such intervention. John Kenneth Galbraith – Harvard Economics Department
This enduring tension is why the quote remains so relevant. It serves as a humorous reminder that in economics, there are rarely easy answers. Its anonymous origins and widespread adoption have transformed it from a simple joke into a piece of academic folklore. The quote perfectly encapsulates the discipline’s constant debate and its struggle to find singular truths in a complex world.