Tag Archives: Economics

Jew of the Week: Daniel Kahneman

In Memory of a Nobel Prize-Winning Researcher

Daniel Kahneman (1934-2024) was born in Tel-Aviv to Lithuanian Jews who made aliyah from France. His uncle, Rabbi Yosef Shlomo Kahaneman, was the head of the famed Ponevezh Yeshiva. Kahneman spent much of his youth in Paris—including during the Holocaust years under the Vichy regime—before returning to Israel in 1948. He studied psychology and mathematics at Jerusalem’s Hebrew University, and later became a psychologist for the IDF, where he developed the standard recruitment interview. Kahneman then moved to the United States to study at UC Berkeley, and earned a Ph.D in psychology in 1961. He returned to Jerusalem to teach at Hebrew University, and was also a visiting professor at the University of Michigan and at Harvard. He researched a variety of fascinating subjects in cognitive psychology, including attention, judgement, memory, biases, happiness, and decision-making. His key conclusion was that people are actually not rational decision-makers, and tend to make counterproductive choices based on biases and preconceived notions. His classic 1998 paper on the “focusing illusion” demonstrates how people tend to overestimate a single factor when predicting happiness. For instance, although studies showed that people across America had relatively the same levels of happiness, people would believe Californians are happier because they overestimated the effects of nice weather. Kahneman is perhaps most famous for his work in integrating psychology with economics, or “behavioural economics”, earning him the 2002 Nobel Prize in Economics. Over the course of his career, Kahneman also taught at Princeton, UC Berkeley, and the University of British Columbia. He wrote several bestselling books and was awarded numerous prizes and honorary degrees. Sadly, Kahneman passed away last week. He has been hailed as one of the most important thinkers of the 20th century.

Words of the Week

Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.
– Marie Curie

From the Archives: In Memory of Joe Liberman

Jew of the Week: André Azoulay

Advisor to Moroccan Kings

André Azoulay (b. 1941) was born in Morocco to a traditional Sephardic Jewish family. He moved to Paris to study and, after completing degrees in economics and international relations, got a job working for Paribas Bank. He stayed at the company for 22 years, rising to the rank of executive vice-president, overseeing the bank’s operations in the Middle East and North Africa. In 1991, Azoulay left Paribas to work for the Moroccan monarchy. He became senior advisor to King Hassan II, and was put in charge of reforming Morocco’s struggling economy. He ran a program of privatization and deregulation that significantly boosted Morocco’s financial position, and brought billions of dollars in new investments to the country. Azoulay is also an international ambassador for Morocco and works to improve relations between Morocco and other countries, including Israel. He has participated in Arab-Israeli peace talks, and played an important role in the Abraham Accords. Azoulay is president of the Foundation of Three Cultures and Three Religions to boost interfaith dialogue and build bridges between Jews, Muslims, and Christians. He sits on the boards of several non-profits and educational institutions. Azoulay has received many awards, including Morocco’s Commandeur dans l’Ordre du Trône, a Lifetime Achievement Award from the American Sephardi Federation and, most recently, an Israeli Presidential Medal of Honour. Israeli President Isaac Herzog said “Azoulay has made an extraordinary contribution to Moroccan Jewry, the Jewish world, and the State of Israel, in cultivating and preserving relations with Morocco over the years, preserving Jewish heritage in Morocco, and providing support and advice to Israeli leaders in their quest for peace in the Middle East. His vision of establishing friendly and peaceful relations between Israel and Morocco was realized in the Abraham Accords and his influence is evident in every area of these relations.” Azoulay continues to serve as senior advisor to Morocco’s King Mohammed VI today, and plays an active role in his hometown of Essaouira, where he works to preserve and promote its history and culture.

How Sephardic Jews Shaped the World

Words of the Week

The Jewish people is permeated by an ancient and historically confirmed belief that nations who subject it to torture and persecution sooner or later feel the full measure of God’s punishing wrath. At the same time, God Almighty sends his blessing to those peoples who stand by the Jews in their time of peril.
– Rabbi Meir Bar-Ilan

Jew of the Week: Milton Friedman

The Great Liberator

Milton Friedman (1912-2006) was born in Brooklyn to poor Jewish immigrants from what is today Ukraine (then part of Hungary). He graduated high school at just 15 and earned a big scholarship to Rutgers University. Initially wishing to be a mathematician, the Great Depression inspired Friedman to become an economist instead. After post-graduate studies at the University of Chicago, and a fellowship at Columbia University, Friedman headed to Washington to work as an economist for the government. To help pay for World War II, it was Friedman who introduced the payroll withholding tax system (“pay-as-you-earn”), where income taxes are deducted automatically from an employee’s paycheck. (Friedman later regretted it very much and said he wished it hadn’t been necessary.) He also spent much of the war working on weapons design and military statistics. He finally earned his Ph.D from Columbia after the war, following which he took a professorship at the University of Chicago, where he taught for the next 30 years. He wrote a popular weekly column for Newsweek, for which he won a prestigious award. His 1962 book Capitalism and Freedom was an international bestseller and made Friedman world-famous, while his A Monetary History of the United States became the standard textbook for understanding the Great Depression and the effects of monetary policy. Friedman argued passionately for a free-market economy and for the government to stay out of business. He proposed such important concepts as the permanent income hypothesis, the quantity theory of money, floating exchange rates, sequential sampling, and the natural rate of unemployment. He also argued for abolishing the Federal Reserve, whom he blamed for many economic ills. He was opposed to minimum wages and foresaw that they would actually lead to increases in unemployment. He is also credited with bringing an end to America’s military draft, transitioning the US military into an all-volunteer paid army. He believed conscription was unethical and prevented young men from choosing their own life path. Friedman later said abolishing the draft was his greatest and proudest accomplishment. Friedman won the Nobel Prize in Economics in 1976. After retiring from the University of Chicago the following year, he continued to do research in San Francisco, and also worked on a popular ten-part TV show called Free to Choose (the companion text of which was the bestselling nonfiction book of 1980). Friedman was an economic advisor to Ronald Reagan, and was called the “guru” of the Reagan administration. In 1988, he won a National Medal of Science and a Presidential Medal of Freedom. Friedman stayed busy until his final days, and his last article for The Wall Street Journal was published a day after his death! He has been called “the Great Liberator” and has been compared to Adam Smith. The Milton Friedman Prize for Advancing Liberty is named after him. He is widely considered one of history’s most significant economists. Today was his yahrzeit.

The End of World War I and the Beginning of the Jewish State

Words of the Week

A society that aims for equality before liberty will end up with neither equality nor liberty.
– Milton Friedman