PodcastWhy the Economy Begins in Private Households
Here’s what he said:
If you look at GDP per capita, it tells you a lot […] But we should not be slaves of this particular indicator. We should keep in mind the fact there are lots of other aspects that should be taken into account.
The wealth of a nation, in particular a developed nation, is much less physical capital than human capital. Human capital is the set of knowledge, competence, skills, all the characteristics that can make an individual more productive.
When you talk about education in general, you think of schools. But at least a large fraction of education, takes place outside of schools, including within the family at the beginning, and on the workplace.
Today, the role of education will be less and less acquiring knowledge and more and more acquiring the ability to change your stock of knowledge, acquiring the flexibility that will allow you to adapt to new knowledge.
We need revolutions. We need evolutions, technical progress, progress in general. And in general, it’s always a rupture. It’s never smooth.
We should avoid going back to inflation, which means that we should be extremely cautious with tariffs. We should be extremely cautious with budget deficit. And we should never toy with the independence of Central Banks.
