Economics Nobel 2025: Culture

By Shlomo Maital

      Each year at this time, I try to explain to readers why Nobel Prizes in science and economics were awarded, in plain language.

      The Economics Prize went to Joel Mokyr, Philippe Aghion and Peter Howitt.  For me this is very personal.  Joel (Yoel) Mokyr was born in Leiden, Netherlands, in 1946, and is the son of Jewish Holocaust survivors.  He immigrated to Israel as a while with his mother, got  a B.A. degree from the Hebrew University, did his Ph.D. at Northwestern U. and remained there for his whole career. 

     In his wonderful 2016 book The Culture of Growth, Mokyr explained the crucial role of a society being ‘open to new ideas and allowing change’.  Culture drives growth, in the end, not just science, technology, infrastructure, and R&D.  Israel, Taiwan, Korea, Singapore, each in their own way have built a pro-growth entrepreneurial innovative culture. 

      Howitt and Aghion built a mathematical model of creative destruction in 1992, showing how when new and innovative products enter the market, older products lose out. This process is crucial. Societies and businesses need to dump old stuff in order to make room and conserve energy for new stuff.  This is a lesson for all of us, not just businesses.

      Yoel, well done.  You join the 21% of Nobel recipients who are Jewish.  We are proud of you.