April 27, 2009
As
people become increasingly anxious about the declining state of the
economy, they rely on experts to keep them informed about the
nation’s financial situation. In keeping with the University’s
tradition of searching out causes and solutions for current social
issues, St. John’s University called on one of the experts.
During the April 1 lecture titled “Understanding the Financial
Crisis,” Dr. Edmund Phelps, winner of the 2006 Nobel Prize in
Economics, discussed the latest developments in the economic and
financial crisis at this year’s Henry George Lecture Series.
The
Henry George Lecture Series, hosted by Henry George Chair and
Professor of Economics Joseph A. Giacalone, Ph.D., originated in
1981 with a grant from St. John’s Peter J. Tobin College of
Business and the Robert Schalkenbach Foundation. The foundation
publishes works by and about Henry George, a world-renowned social
scientist of the late 19th century. Over the years, the lecture
series has featured many prominent economists, 13 of whom were
featured in The Path to Justice: Following in the Footsteps of
Henry George, a book co-edited by Dr. Giancalone in 2005.
Dr. Phelps, McVickar Professor of Political Economy at Columbia
University and Director of Columbia’s Center on Capitalism and
Society, is the ninth Nobel Prize economist to speak in this
business school lecture series. This year, the Henry George program
teamed up with the University’s learning communities program in
order to bring the event to more students.
Dr. Phelps’ provided his assessment of the causes and possible
solutions to the current global economic meltdown, including the
philosophical roots of capitalism; prior financial crises, the
housing bubble based on sub-prime mortgages and the easy credit
provided by the federal reserve system; and the over-leveraging of
the banking system.
“The lecture was great because it gave insight into another side of
economics that many students don't look at. Bringing speakers like
Dr. Phelps, is huge. Outside class room experiences and learning
how our knowledge can be applied in the real world is extremely
valuable,” commented a Tobin College of Business student, John
Hohos.
The lecture ended with Dr. Phelps calling for a restructuring of
the financial system, including the establishment of a class of
banks that will focus on lending for the creation of real
industrial assets as opposed to financial assets.
For more information about the Henry George Lecture Series, please
contact Professor Giacalone at giacaloj@stjohns.edu or
ext.7301.