Dan Johansson on Economics without Entrepreneurship or Institutions

Let's be clear for the listeners' sake.

What do we mean by entrepreneurship?

Oh, that's a very good question.

I think that question isn't really solved yet.

It depends on what economic issue you address and which scholar you kind of refer to.

So Schumpeter, he had one definition, it was about new combinations, introducing new combinations into the economy.

Kerstner was more of this general equilibrium.

Kerstner thought

that the entrepreneur was needed to even out price differences price differences so the low one price so he was an equilibrating force then and then you had Kersner who thought about that someone has to he wanted to explain high profits and talked about judgment for example so yeah you can win different things with the entrepreneur but in all cases it's someone who plays a critical role to understand how the economy

works.

What is the critical role, just to be clear?

Yeah, I would say for me it's very much to explain change in different ways.

And for myself, I've been very interested in trying to understand innovations and then economic growth.

If you go to the I think

entrepreneurship is

very much about the core of

economics.

If you want to understand the wealth of nations, then you have to understand why economists grow.

And then if you want to understand why economists grow, then you need to understand innovations.

And as Schumpeter said, innovations...

Do not fall as manna from heaven.

It's a result of human action, if you want.

If you also like to include Mises here, human action and human creativity.

And then someone has to do that.

That's the person who takes responsibility for innovation.