Donald Boudreaux’s article takes advantage of the 2018 Nobel Prize winning economist William Nordhaus’s recent notoriety to highlight one of the Nobel Laureate’s older works that attempts to measure the economic impact of technological innovation. The most interesting finding from the paper is that from the period 1948-2001 producers only captured 2.2% of the economic benefits while consumers received the lion’s share of 97.8%. Professor Boudreaux asserts that capitalism, rather than the innovator’s benevolence, is responsible for the split.
I’d be willing to bet the next time you read an article that highlights Jeff Bezo’s $147 billion net worth, it will fail to mention the $6.5 trillion of consumer value created.
Lagniappe: For those who want to read more of Donald Boudreaux’s work, check out his blog Cafe Hayek.