Ode to Post Neoclassical Endogenous Growth Theory
Men often think of Halcyon days of long ago
But much past time was dreary, nasty, full of woe
And for this problem no one could think of any good solution
Until one day, along came the Industrial Revolution
Man's labour, engines and his keenest wit
Produced all manner of goods, some welded, others knit
And in this way Man's welfare grew at a rapid rate
Saving many from a much more horrible fate
Bright Scotsmen, and some English too
Studied hard; and so they thought they knew
That this was not just something plainly magical
But was due to free markets – and explanation quite classical
But when, later, wise men asked where all the growth came from
Then many, even great economists, were struck dumb
All the statistics that they gathered were quite clear
The hard toil of people and machinery were small beer
Only inventions seemed to have any effect
And from where these arose everyone was quite bereft
So people then began to get rather weary
Of the once almighty neoclassical growth theory
But then new analyese, oh do subtle
Questioned all this and led to its rebuttal
A new explanation arrived, over which there was quite a fuss
Technical progress – innovation, ideas – were "endogenous"
Invention was crucial but needed embodiment
In people – in skills – and in capital investment
So these were important to make growth shine
Although others had known this for a very long time
All this was important to men in Whitehall
Who hadn't had much luck with growth rates at all
Now they had reason to spend on capital, education and skills
And made sure this happened through many Parliamentary Acts and Bills
This was very much favoured by one Gordon Brown
Who soon became much the biggest man in town
And if critics did all this approach then query
He answered "it's post-neoclassical endogenous growth theory"
Sir Derek MorrisDone deliberately in the style of
William McGonagall.
