People I (Mostly) Admire 11. Paul Romer: “I Figured Out How to Get Myself Fired From the World Bank.”
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Mar 7, 2026 Paul Romer, Nobel Prize–winning economist known for endogenous growth theory and charter cities. He discusses why big ideas cannot be manufactured. He explains knowledge as a non-rival good and its role in growth. He tells the story of attempting charter cities and the political obstacles. He reflects on quitting as a deliberate strategy and when to choose change over indecision.
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Theory Reveals Unexpected Connections
- Theory is valuable when it reveals unexpected connections that simplify complex problems.
- Paul Romer credits abstraction for insights like linking idea shareability to growth, but says evidence should override theory when they clash.
Knowledge Is A Non-Rival Driver Of Growth
- Knowledge functions as a non-rival good driving long-term economic growth because discoveries can be shared at near-zero marginal cost.
- Romer emphasizes that shareability explains why connecting many people multiplies standards of living over time.
Non-Rival Goods Change Social Incentives
- Non-rival goods required departing from perfect competition because their benefits accrue simultaneously to many users.
- Romer ties this to a moral shift: larger populations become collaborators rather than threats, unlocking human and material growth.