Edmund S. Phelps — Teaching Economic Dynamism

In other words, economies today lack the spirit of innovation. Labor markets do not need only more technical expertise; they require an increasing number of soft skills, like the ability to think imaginatively, develop creative solutions to complex challenges, and adapt to changing circumstances and new constraints.

That is what young people need from education. Specifically, students must be exposed to – and learn to appreciate – the modern values associated with individualism, which emerged toward the end of the Renaissance and continued to gain traction through the early twentieth century. Just as these values fueled dynamism in the past, they can reinvigorate economies today. 

A necessary first step is to restore the humanities in high school and university curricula. Exposure to literature, philosophy, and history will inspire young people to seek a life of richness – one that includes making creative, innovative contributions to society. Indeed, studying the “canon” will do more than provide young people with a set of narrow skills; it will shape their perceptions, ambitions, and capabilities in new and invigorating ways. In my book Mass Flourishing, I cite some key figures who articulate and inspire modern values. 

The humanities describe the ascent of the modern world. Countries worldwide can use the humanities to develop or revive the economies that drove this ascent, while helping individuals to lead more productive and fulfilling lives.

Professor Phelps gets it. Economies are about people not equations. Tools are means and not ends. The need is for increased creativity rather than specialized learning or technical expertise. Don't teach to the text or the exam, teach to the desired result — living a good life in a good society. The message should be, pick something great to do and do it. It's short, read the whole thing.

Project Syndicate
Teaching Economic Dynamism
Edmund S. Phelps, Nobel laureate in economics and Director of Columbia University’s Center on Capitalism and Society and Dean of the Newhuadu Business School