Alvin Hansen

Alvin Harvey Hansen (1887-1975) was professor of Economics at Harvard University, and is best known for introducing Keynesian economics in the United States in the 1930s.

Miller (2002) show how Hansen, born in South Dakota and educated at the University of Wisconsin, embraced John Maynard Keynes's theories of the need for government intervention in periods of economic recession soon after arriving at Harvard in 1937. Hansen excelled at both scholarly works and popular expositions that helped people understand economic cycles and deficit spending. He trained and influenced hundreds of students, many of whom later held important government posts, and he served on numerous governmental committees dealing with economic issues. The American Economic Association awarded him its Walker Medal in 1967. Hansen strongly supported the New Deal.

In the late 1930s Hansen argued that "secular stagnation" had set in, so that the American economy would never grow rapidly again, because all the growth ingredients had played out, including technological innovation and population growth. The only solution, he argued, was constant deficit spending by the federal government. The sustained economic growth beginning in 1940 undercut his predictions.

Paul Samuelson was Hansen's most famous student. Samuelson credited Hansen's Full Recovery or Stagflation? (1938) as the main inspiration for his famous accelerator-multiplier business cycle model of 1948. Leeson (1997) shows that while Hansen and Sumner Slichter continued to be regarded as leading exponents of Keynesian economics, their gradual abandonment of a commitment to price stability contributed to the development of a Keynesianism which conflicted with positions of Keynes himself.

Bibliography

Primary sources

• Alvin Hansen, "Economic Progress and Declining Population Growth," American Economic Review (29) March (1939). online at JSTOR.
• Alvin Hansen, Fiscal Policy and Business Cycles (1941)

Secondary sources

• Quarterly Journal of Economics vol 90 # 1 (1976) pp 1-37, online at JSTOR and/or in most college libraries.
• "Alvin Hansen on Economic Progress and Declining Population Growth" in Population and Development Review, Vol. 30, 2004
• Leeson, Robert. "The Eclipse of the Goal of Zero Inflation." History of Political Economy 1997 29(3): 445-496. Issn: 0018-2702 Fulltext: in Ebsco. deals with Hansen and Sumner Slichter
• Miller, John E. "From South Dakota Farm to Harvard Seminar: Alvin H. Hansen, America's Prophet of Keynesianism" Historian (2002) 64(3-4): 603-622. Issn: 0018-2370
• Rosenof, Theodore. Economics in the Long Run: New Deal Theorists and Their Legacies, 1933-1993 (1997)