Hmmm. Is he saying that workers should be kept toiling until the day they die? Modigliani is on the List of Jewish Nobel Laureates. He was an icon in my world when I was in economics.
Franco Modigliani (Italian: [ˈfraŋko modiʎˈʎani]; June 18, 1918 – September 25, 2003) was an Italian economist naturalized American, a professor at UIUC, Carnegie Mellon University and MIT and who won the Nobel Memorial Prize in Economics in 1985.
Born in Rome, Italy, Modigliani left Italy because of his Jewish origin and antifascist views, although he had previously published fascist economic papers and had personally received an award from Mussolini. He first went to Paris with the family of his then-girlfriend, Serena, whom he married in 1939, and then to the United States. From 1942 to 1944, he taught at Columbia University and Bard College as an instructor in economics and statistics. In 1944, he obtained his D. Soc. Sci. from the New School for Social Research working under Jacob Marschak. In 1946, he became a naturalized citizen of the United States, and in 1948, he joined the University of Illinois at Urbana-Champaign faculty. From 1952 to 1962, he was faculty at Carnegie Mellon University, where several path-breaking contributions to economic science were made:
Along with Merton Miller, he formulated the important Modigliani–Miller theorem in corporate finance (1958). This theorem demonstrated that under certain assumptions, the value of a firm is not affected by whether it is financed by equity (selling shares) or debt (borrowing money).
He was also the originator of the life-cycle hypothesis, which attempts to explain the level of saving in the economy. Modigliani proposed that consumers would aim for a stable level of consumption throughout their lifetime, for example by saving during their working years and spending during their retirement.
He has claimed that the Rational Expectations Hypothesis (REH) rests in his and Emile Grunberg’s paper. He has also used the concept Macro Rational Expectations Hypothesis (MREH).
In 1962, he joined the faculty at MIT, achieving distinction as an Institute Professor, where he stayed until his death. In 1985 he received MIT’s James R. Killian Faculty Achievement Award.
Modigliani also co-authored the textbooks, “Foundations of Financial Markets and Institutions” and “Capital Markets: Institutions and Instruments” with Frank J. Fabozzi of Yale School of Management.
In the 1990s he teamed up with Francis Vitagliano to work on a new credit card, and he also helped to oppose changes to a patent law that would be harmful to inventors.
He is the co-author of Rethinking Pension Reform (2009), Cambridge University Press, and along with Arun Muralidhar, critiqued the privatization model of Social Security reform proposed by the World Bank (in the 1990s) and President Bush in the early 2000s, and offered a better alternative to reform Social Security systems globally.
Modigliani was a trustee of the Economists for Peace and Security.