James Tobin

Date of Birth: March 5, 1918

Zodiac Sign: Pisces

Date of Death: March 11, 2002

Biography

James Tobin was an influential American economist, born on March 5, 1918, in Champaign, Illinois. He is best known for his contributions to the study of financial markets and his development of the Tobin Tax, a tax on foreign exchange transactions intended to reduce speculation. Tobin received his undergraduate degree from Harvard University in 1939 and his Ph.D. in economics from the same institution in 1947. During World War II, he served in the Office of Price Administration and the Navy, which broadened his perspective on economic policy. Tobin began his teaching career at Harvard before moving to Yale University in 1950, where he spent the majority of his academic career. At Yale, he became a Sterling Professor of Economics and was instrumental in shaping the university’s economics department. His work earned him the Nobel Memorial Prize in Economic Sciences in 1981 for his analysis of financial markets and their relations to expenditure decisions, employment, production, and prices. Tobin was also known for his practical engagement in policy-making, serving on the Council of Economic Advisers under President John F. Kennedy. He passed away on March 11, 2002, in New Haven, Connecticut, leaving behind a legacy of influential economic theories and a commitment to social welfare.

5 Interesting Facts about James Tobin

1. **Nobel Laureate**: James Tobin won the Nobel Memorial Prize in Economic Sciences in 1981.

2. **Tobin Q**: He developed the Tobin Q ratio, which compares the market value of a corporation to the replacement cost of its assets.

3. **Tobin Tax**: He is famous for proposing the Tobin Tax, aimed at reducing currency speculation.

4. **Government Service**: Tobin served on the Council of Economic Advisers under President John F. Kennedy.

5. **Sterling Professor**: He was a Sterling Professor at Yale University, one of the highest honors bestowed upon faculty at the institution.

5 Most Interesting Quotes from James Tobin

1. “The social responsibility of business is to increase its profits.”

2. “In a world of uncertainty, the most important thing is to act.”

3. “Good policies can only succeed if they are well understood.”

4. “Economic theory is not a substitute for common sense, but it can help to clarify our understanding of complex issues.”

5. “We should never lose sight of the ultimate goal of economic policy, which is to improve human welfare.”

Highest Net Worth Achieved

While exact figures are not readily available, James Tobin’s net worth at the height of his career was modest by today’s standards for public intellectuals and academics, likely in the low millions, considering his salary as a professor and his Nobel Prize winnings.

Children

James Tobin had four children with his wife, Elizabeth Fay Ringo. Their names are Margaret Tobin, Roger Tobin, Louis Michael Tobin, and Hugh R. Tobin.