They call it The Dismal Science, the study of economics. More through a lust for symmetry than pure historical coincidence we have two giants of economic theory in our birthday list. Adam Smith, arguably the greatest economist of all time, was baptized on this day, the actual birth records have never been found. John Maynard Keynes, also arguably the greatest economist of all time, was actually born on this day. As the Internet is bringing us to an economy closer to what Smith envisioned (wide variety of choices for buyers and sellers, smaller players maintaining an active role) and Keynesian economics are seeming to be less predictive of economic trends since the '70s, the argument seems to be moving toward Smith. At least everyone knows how to pronounce Smith, most Americans (including a number of TV broadcasters) don't seem to know that "John Maynard Keynes" rhymes with "More Candy Canes."
While we're on the subject, today marks the end of the gold standard. Today's quotes relate to economists and gold.
Denmark celebrates not one but two constitutions, the Seychelles mark a coup, a landmark civil rights case was decided by the US Supreme Court, and the course of the presidency was probably altered by the assassination of Bobby Kennedy.
More recently, we celebrate two days without a typo and our 4,000th subscriber. I'll keep up the proof reading if you'll keep inviting your friends to join!
1933 - US Congress, at the request of the Roosevelt administration, passed a joint resolution known as the Emergency Banking Act which voided any and all gold clauses in public and private debts.
1950 - In Henderson v. United States, the US Supreme Court affirmed its rejection of segregated dining cars and other facilities in bus and train travel.
1968 - Immediately following his victory speech at the Ambassador Hotel in Los Angeles after winning the California primary in the 1968 presidential election, Senator Robert Francis Kennedy was shot by Jordanian nationalist Sirhan Bishara Sirhan and dies the following day. Kennedy had won four out of five primaries.
Liberation Day, Seychelles - Although already an independent republic following colonial government (first French, then British), this is the anniversary of the 1977 coup led by socialist Prime Minister France Albert René while the President was at a meeting in London.
Constitution Day, Denmark - Celebrates the signing of the Constitution in 1953 as well as the creation of an earlier constitution ratified on the same day in 1849.
1723 - Adam Smith, Scottish economist, philosopher - Baptized this day at Kirkcaldy, Fife, Scotland, no exact birth record survives, father died six months before Adam was born. University of Glasgow at age 15, Oxford at age 17, left school in 1746. Lectured and tutored for several years, including the subject of "the progress of opulence" and "the obvious and simple system of natural liberty." Professor (logic and moral philosophy) 1751 - 1763, took a lucrative tutoring job and traveled Europe with his charge through 1766, then spent ten years writing what is still the most influential volume on economics, Inquiry into the Nature and Causes of the Wealth of Nations, in 1776. Customs commissioner in 1778, lived with his mother in Edinburgh until his death following a painful illness 17 July 1790.
1883 - John Maynard Keynes, British mathematician, economist - Born at Cambridge, prep school, Eton, entered King's College Cambridge in 1902. Civil service 1906 to 1909 in India, remainder of his life was a fellow at King's College. Wrote volume on Indian economy, was summoned to the UK treasury to arrange financing for war economy, member of British delegation at the Versailles Peace Conference in 1918. Kept his tongue at the conference, blasted the vindictive reparations required of Germany, prophesied threat to all of Europe. Wrote monster tome in 1936, The General Theory of Employment, Interest and Money, suggesting that governments could balance economic cycles by tax and budget adjustments. Served treasury during WW II, delegate at Bretton Woods conference, arranged multi-billion dollar loan for England from US. Director of Bank of England, Lord Keynes of Tilton. Exhausted by war effort he died at Firle, Sussex on 21 April 1946.
A year ago, if I had $100 in gold in my pocket, I was a law-abiding citizen;
if I perchance had a pint of whiskey I was a criminal. Today, if I have
the whiskey, I am a law-abiding citizen; but if I have the gold I am a
criminal violating the law.
- L. J. Dickinson (Jan. 1934)
In all recorded history there has not been one economist who has had
to worry about where his next meal would come from.
- Peter Drucker
The golden age only comes to men when they have forgotten gold.
- G. K. Chesterton
In the long run we are all dead.
- John Maynard Keynes
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