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Wow. Looks like Harvard's Class of 1906-ish was expected to understand and operate parts of the real-world economy.

In America.

How times have changed!


(Former) econ prof here (now in industry), though definitely not at Harvard.

To be honest "draw a map of a rail yard" or "write up a waybill" does not seem like the kind of exam material college students should be engaging in in 2024. The standard is higher now, a lot of the material more difficult and the questions have changed. The material being tested on that exam looks like middle-high school in parts?

In an _intro_ economics class I'd like students to understand what we (think we) know about supply and demand and apply it to relevant public policy issues - housing supply, taxation of vices, etc. I'd like them to discuss policy trade offs.

"Railroad economics" was presumably an elective, where the standards now would be even higher than in my intro class.

High-level theory is nice. Ditto public policy savvy. And quite a few of the other questions on the 1906 exam reflect that.

But back at the coal face -

Rail yards were a very important and expensive part of a ~1906 railroad's infrastructure - both to build, and to operate. And the efficiency differences between a well-designed and poorly-designed yard were huge. A prospective RR manager who can't quickly map out a good rail yard is someone who simply does not understand the at-scale operation of a railroad.

Similarly, waybills were the core document for moving individual customer's loads around on an RR. If (fake name) EconoAir's manager at your local airport did not understand Flight Plans well enough to quickly draw one up - would you want to own EconoAir's stock, or fly on their airplanes?

The issue seems to be one of terminology. The questions on the exam (and thus topic of the course) appear to be about technical competence at a handful of skills highly specific to the railroad industry. That's fine and valuable, but its not what most people would describe as "economics". I wouldn't expect the skills taught in an "economics" class to be concerned with the specific price of shipping a very particular bill of goods on a very specific line on a very particular railroad. I wouldn't expect "economics" to mean the fine grain details of the practical engineering challenges in laying out track. I would expect "economics" to mean some sort of underlying analysis of railroad pricing and capital expenditure practices.
A notable and interesting example I remember of "economics" being used to refer to practical skills is in "Home Economics"[0], which actually has nothing to do with home prices or underlying theories about spending in households. It's practical skills in social care, meal prep, and basic maintenance relevant to on-the-ground families.

[0] https://en.wikipedia.org/wiki/Home_economics

> If (fake name) EconoAir's manager at your local airport did not understand Flight Plans well enough to quickly draw one up - would you want to own EconoAir's stock, or fly on their airplanes?

So since universities obviously do not focus on teaching that material, do you suppose that people in positions of authority at airlines don't understand flight plans?

Universities are institutions of higher learning, you can acquire the industry-specific mundane details on the job.

If you used Scheme in your CS program, you can figure out whatever tech stack your company is using. It's really not any different.

There certainly are both bachelor and master programs for airline management, air traffic control, cargo management, airline safety, etc.

https://www.vaughn.edu/degrees-programs/bachelors-degrees/ai...

Having actually taught economics undergrads at Harvard, albeit in a science elective, I can the standards are not quite so high as you might think.
Assume two things and it makes more sense:

1. Harvard was aiming their students to jump straight into middle management (as it does today). 2. No ERP. No Excel spreadsheets. Mechanical calculation if you're lucky. Little communication if you're the manager in a small office. Lots of paper.

Just like today, middle managers need to know how to make business decisions quickly and correctly. This is how you get gains at the margin.

Would students of the time have learned about these things at any time before Harvard?

I think at the time this represented key aspect of the business that someone managing it should know about. Nowadays things may be too diverse and complex for people to learn, or be taught such specifics in college, but people taking senior positions in any companies still do a much better job if they know how the business works from the bottom up.

just accepting the demand supply curve mantra is accepting a lot of consumerism dogma. and the math is not even that solid, as you know very well.
What exactly isn't solid about it? Like most things, the theory may have exceptions and it isn't the only force at play. However, things like finding theoretical price points for a basic product based on demand, supply, and pricing is well established as a concept. The math behind it is very simple. When we get incorrect results, it's usually because one of the input numbers didn't match what we observed in reality, not because of an actual math issue.
it presumes some huge things.

like, that selling light bulbs that expire in weeks is better for the supply curve.

or presumes that workers might never beat the prisoners dilemma and the central banks will always keep the correct unemployment rate.

or that consumers will never make any informed purchase and will always drive process to bottom for a good demand curve.

etc.

the thing is, it works very well, because the system accepted that dogma just like feudalism accepted looks were ordained from god, despite having to hold an army to keep god's word... so the models work, but you must accept the whole theology, which is never mentioned in any level of economics (well, it's briefly mentioned as tools in development economy)

None of those things are universally true. For example, you don't have to race to the bottom for demand. Luxury products and branding are extremely obvious counter examples.
No offense intended, but your comment reads a bit like a word salad of some economics concepts which you likely don’t fully understand.

- “presumes that workers might never beat the prisoners dilemma” - that has nothing to do with demand curves. I have no idea what you are talking about.

- “[presumes??] that consumers will never make any informed purchase” - nothing of the sort is true.

- “selling light bulbs that expire in weeks is better for the supply curve.” What??

> How times have changed!

Have they? What's changed, specifically, in Harvard's various programs in the last 118 years that lead you to your implied conclusion that their business and economics curricula have worsened?

Business classes, especially at institutions like Harvard and Sloan, have shifted their focus dramatically towards finance and upper management concerns and away from real boots-on-ground business operations.
A friend and MIT alum went back through Sloan for a foundation he felt he needed to assemble a venture around IP he'd developed. Approaching it again after, he told me effectively what you described - while he felt he got "executive training", after trying and failing, it didn't provide practical knowledge to build and manage a successful operation.

Instead, he hopped in the helm of an existing company and has done well enough with it. It was superset training, in the end.

But half the questions here are less about ensuring competency to make decisions and more basic definitional stuff manual workers that didn't finish high school would presumably be expected to pick up after a couple of weeks on the job. Don't think we'd be raising standards if we dropped all the calculus and statistics knowledge requirements in a modern Econ course in favour of "name three web technologies" and "describe the difference between an Account Executive and and SDR"
I think you might get a more sensible response if you change it to: Describe the differences between the two primary web architectures and the pro’s and con’s of each.

If you replace a good question with a bad one, regardless of the subject, you’ve made the exam worse.

The problem being that econ people will be in positions later where having that knowledge matter.

Why build something when you can leverage your social status to take ownership from others and profit off it indiscriminately with minimal effort - i.e. Finance and Upper Management.
The snark is uncalled for, especially because Harvard does have a (fairly decent) engineering program at the undergrad level, as well as the fact that the 2 most popular concentrations are Econ and CS.

Nor does this kind of snark actually add any value to the discussion in HN and clearly breaks multiple rules of HN [0]

[0] - https://news.ycombinator.com/newsguidelines.html

"Like previous graduates, most seniors plan to hold jobs in the finance, consulting, and technology sectors..." - https://features.thecrimson.com/2021/senior-survey/after-har...

"The majority — 58 percent — of Harvard’s graduating class will immediately enter the workforce, and more than half will take jobs in finance, tech, or consulting..." - https://features.thecrimson.com/2024/senior-survey/after-har...

And look at their current Economics electives -

https://economics.harvard.edu/sites/hwpi.harvard.edu/files/e...

- which, if you're going into finance, consulting, public policy, or political ideology, look great. But if you want to understand or manage a real-physical-world company? Maybe Econ 1745 - "Corporate Finance" would be useful?

And Harvard's own numbers here - https://news.harvard.edu/gazette/story/2022/05/harvard-award... - suggest that that "fairly decent" engineering program is a puny fraction of the undergraduate population. And maybe has a pretty poor RoI on its Harvard-sized tuition, given that Harvard feels the need to argue that prospective applicants shouldn't just ignore it, in favor of well-known engineering programs, because "community and location": https://college.harvard.edu/student-life/student-stories/why...

> And look at their current Economics electives - https://economics.harvard.edu/sites/hwpi.harvard.edu/files/e... - which, if you're going into finance, consulting, public policy, or political ideology, look great. But if you want to understand or manage a real-physical-world company? Maybe Econ 1745 - "Corporate Finance" would be useful?

A pure Econ degree doesn't put you on management or leadership tracks in most companies.

Most are practitioners who were sponsored by their employer to attend an MBA, or were recruited out of college for an LDP (eg. Abbvie and UIUC CS/Biotech, Danaher and CMU MechE, P&G and CMU/UMich/OSU/UIUC ChemE/MechE).

The employment stats you provided aren't anymore different from similar peer programs with an Engineering bias like UC Berkeley [0], UCLA [1], or UW [2].

Finance, High Tech, and Consulting are always the trifecta for high paying white collar jobs no matter which program you attend.

I think you have this weird notion or stereotype that it's only "HAHVAD" grad that run the world like an evil cabal. In reality, there are plenty of equally selective public schools with similar outcomes and that have a similar impact (eg. The ones I listed above).

[0] - https://career.berkeley.edu/employers/learn-about-the-campus...

[1] - https://admission.ucla.edu/explore/student-outcomes

[2] - https://careers.uw.edu/outcomes/

> https://economics.harvard.edu/sites/hwpi.harvard.edu/files/e...

> which, if you're going into finance, consulting, public policy, or political ideology, look great. But if you want to understand or manage a real-physical-world company? Maybe Econ 1745 - "Corporate Finance" would be useful?

Are you saying that the "Railroad Practice" elective is directly comparable to the "Corporate Finance" elective of today?

If anything, I'd say that Railroad Practice is best compared to "Using Big Data to Solve Economic and Social Problems" in that they're both focused on some of the biggest economic facilitators of their respective days, rail and data science. And Harvard's other electives seem similarly tailored, allowing people to get a grasp of fields of practice that can yield them a substantial advantage in practice, e.g in leveraging globalization or serving underserved markets.

Your other points aren't comparative to the Harvard of the day but rather speculative ("a puny fraction" and its suggested impact), so there's not much I can do to speak to them.

---

Tangent: it'd be an interesting analytic exercise to compare courses and curricula year by year and see what percentage of electives have generalized, what percentage have specialized, and to get a better grasp of how a school's programs are both adapting to and anticipating current and future economics landscapes.

Here's the class page for "Using Big Data to Solve Economic and Social Problems"

It's a good course (I had mentees who took it)

https://opportunityinsights.org/course/

Do you disagree? I understand the scolding and you may consider it irrelevant to answer my question but I am curious about the intentions of those who push back in this way.
> Do you disagree? I understand the scolding and you may consider it irrelevant to answer my question but I am curious about the intentions of those who push back in this way.

Meta-question on the emphasis above: are you (uoaei) and bell-cot the same user?

I think this was a confusing use of "this".
> Do you disagree

Read the first paragraph

> about the intentions of those who push back in this way

Follow the HN guidelines (I myself have fallen foul of them on occasion).

Low quality snark is not the kind of discourse that has value on this forum.

And eaganist brings up a good point.

And of course you feel like it's your job to tell others what has value and what not? Why do you feel the entitlement to this?
It's probably coming from frustration with non-contributive commentary, of which the topmost comment unquestionably qualifies.

It's in poor form to do citizen-policing pretty much anywhere let alone an internet forum, but I won't begrudge the user their frustrations over something that's undeniably a problem.

Heh.

in my opinion i expect a vocational institute to teach the practical aspects of the industry, or at least be taught as part of OJT. And I believe many companies actually do provide a significant amount of OJT as part of their management traineeships or apprenticeships, and companies that take in employees earlier in their educational journey, such as pre-college apprenticeships, tend to focus on practical and technical knowledge more quickly.

at the college level, i don't really think these are meaningful questions to ask in order to test understanding. these feel like something you'd pick up after a week of working a trade financing desk in a industrial bank.

Very easy to give a fact-free hot take, but I thought I'd take a look at the "research" section of Harvard's economics department website at the moment[1] to see what they work on. I'm not an economist but it seems like a pretty serious attempt to understand the real-world economy. Picking a paper purely at random (again, I'm not an economist so I just clicked through a few and they seem similar-ish to me in a broad sense) this[2] is a pretty serious analysis of industrial policy with some real-world case studies about the Oxford-AstraZeneca partnership around the covid vaccine, German industrial policy given the transition from heavy industry to climate tech and some stuff about how Israel has created a favourable climate for tech startups. That not real-world enough for you?

[1] https://drodrik.scholar.harvard.edu/research-papers

[2] https://drodrik.scholar.harvard.edu/sites/scholar.harvard.ed...

Those are research papers. But these kinds of case studies aren't unusual at the undergrad level even at state schools. The rubric and results are not as in-depth or built out as published research. Usually the question for these exercises or papers are built on research publications so the professors have answers to grade yours against.
Well the point was about students not researchers afaict.

There's a difference between Harvard (or any powerful equivalent) the research establishment and Harvard the school for training America's new elite.

Most of the economics students I know (especially the Harvard ones) would not surprise the PC at all.

As a subject it doesn't attract particularly serious people.

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