Sylvia Nasar: The Discovery of Productivity Growth and the Welfare State (2/5)

The video explores the evolution of human capital and its impact on productivity, focusing on Marshall's economic theories and Beatrice Webb's contributions to social reform. Marshall emphasized education and skill acquisition as key to economic growth, contrasting with Marx's views. Webb, influenced by Herbert Spencer, advocated for evidence-based social reform, leading to the welfare state concept. Her ideas influenced political figures like Winston Churchill, resulting in early welfare legislation.

What was Marshall's view on the role of education in productivity?

• It was a minor factor in economic growth.

• It was irrelevant to productivity.

• It was the great accelerator of productivity improvements.

• It was only important for the elite class.

How did Marshall's observations differ from Marx's views on labor?

• Marshall thought labor would remain static.

• Marshall observed an increase in skilled labor.

• Marshall believed labor would become less skilled.

• Marshall agreed with Marx on labor dynamics.

What was a key shift in economic thought introduced by Marshall?

• Economics ignored human capital.

• Economics became an engine of analysis.

• Economics focused solely on agriculture.

• Economics became about what you couldn't do.

Who was Beatrice Potter Webb?

• A political leader.

• An economist like Marshall.

• A social investigator and reformer.

• A famous novelist.

What was Beatrice Webb's contribution to social reform?

• She was against government intervention.

• She focused on private sector growth.

• She invented the think tank and promoted the welfare state.

• She opposed the welfare state.

What was the main argument for the welfare state according to Beatrice Webb?

• It would only benefit the wealthy.

• It was unnecessary for economic growth.

• It would provide a minimum standard of living and improve productivity.

• It would decrease productivity.

Which political figure was influenced by Beatrice Webb's ideas?

• Adam Smith

• John Maynard Keynes

• Karl Marx

• Winston Churchill