I’ll start with the text of my father’s obituary from Sunday’s New York Times and Chicago Tribune, then stories about confronting oil companies in the 1970s and predicting the housing market collapse in January 2008, and finally a selection of Op-Eds and Letters to the Editor from the New ork Ties.
Paul Davidson, renowned economist and advocate for humane economic policies, passed away on June 20, 2024. He was 93 years old.
Born October 23, 1930, in Brooklyn, NY, Paul Davidson dedicated his life to challenging conventional economic theories and advocating for policies that prioritized human welfare over abstract models. He earned his BS at Brooklyn College, his MBA at City University of New York, and his PhD at the University of Pennsylvania, where he developed a deep-seated skepticism toward mainstream economic doctrines that he believed often failed to address real-world economic challenges.
Throughout his career, Davidson was a tireless advocate for John Maynard Keynes’ theory emphasizing the importance of uncertainty in economic decision-making, and for macroeconomic policies that would promote full employment, and create a more just and equitable society.
One of his most influential books, Money and the Real World, challenged prevailing assumptions about the role of money in the economy, and solidified his reputation as a leading thinker in alternative economic theory. He was author, co-author, or editor of 22 books and numerous articles; a complete listing is available at pauldavidsoneconomist.com.
Paul Davidson was co-founding editor with Sidney Weintraub of the Journal of Post Keynesian Economics (JPKE). Davidson mentored many aspiring economists as a professor at Rutgers, the University of Tennessee, and the New School among other institutions. His dedication to fostering critical economic thinking inspired countless students and colleagues around the world.
Paul Davidson was a loving husband to Louise, his wife of 59 years. He is survived by his three children, Robert, Diane, and Greg, their families including grandchildren Chris, Emily, Kai, Lulu, Arik, Gavi, and Zakkai, and great grandchildren Beau, Elie, Finn, Max, and Mallory, and his companion for his final years, Marilyn.
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Just before I was born, my father was hired by a Texas oil company (wanting a liberal perspective on economics in case Kennedy beat Nixon in the 1960 election). One notable experience during that year in Texas was when my white Jewish mother and sister were at Woolworth’s and accidently sat down at the luncheon counter designated for colored people. People shouted at her, but my mother was stubborn and refused to leave until they served her the tuna fish salad sandwiches.
My parents found the racism oppressive and moved back north, but not before my father gained insights that proved useful years later. As oil prices were rising in the 1970’s Energy Crisis, my father testified before Senator Ted Kennedy’s Subcommittee that an obscure Department of the Interior statistic revealed the major oil companies took 80% of their wells out of operation to help spike prices upward (due to an inexplainable plague of “dropped wrench into well” and “mechanical failure” excuses).
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In January 2008, well before mainstream economists had significant concern about the overall health of the economy, my father presented How to Solve the U.S. Housing Problem and Avoid a Recession to a major conference.
“…the original subprime mess has ultimately resulted in an insolvency problem for millions of U.S. households. The government’s fiscal “stimulus” plan does not directly address this insolvency problem. The Federal Reserve pumping in more liquidity will not end the housing insolvency problem…”
He proposed that the government refinance mortgages at low rates and extended maturities (40 years), and finance new investment in private sector housing. This approach would have drastically reduced the economic collapse and subsequent increase in inequality and would have generated significant revenues to reduce the national debt. Unfortunately, my mother became more seriously ill right at that time, and despite my father’s passionate advocacy for progressive economic policies, he always prioritized his love and devotion to his wife.
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New York Times Op-Eds and Letter to the Editor
