Division of the Social sciences

University of Minnesota, Morris

POLITICAL ECONOMY I & II

(Econ 3003 and Econ 3004)

SPRING 2004

MWF: 1:00 p.m. – 2:05 p.m.

Location: SS 136

Dr. Cyrus Bina

Office: Camden Hall 206

Phone & Voicemail: 589-6193

Fax: 589-6117

Mailbox: Camden Hall 109

E-mail: binac@mrs.umn.edu

Office Hours: MW: 9:15 a.m. – 10:30 a.m. and/or by appointment

TEXBOOKS:

Robin Hahnel, The ABC of Political Economy: A Modern Approach, London: Pluto Press, 2002.

Ben Fine and Alfredo Saad-Filho, Marx’s Capital, Fourth Edition, London: Pluto Press, 2004.

Ron Baiman, Heather Boushey, and Dawn Sounders (Eds.) Political Economy and Contemporary Capitalism, Armonk, New York: M. E. Sharpe, 2000.

Cyrus Bina, Laurie Clements, and Chuck Davis (Eds.) Beyond Survival: Wage Labor in the Late Twentieth Century, Armonk, New York: M. E. Sharpe, 1996, Ch 1. [On Reserve at Briggs Library.]

COURSE DESCRIPTION:

The entire 4-credit (two-partite) course provides the basic knowledge on the subject of political economy, its historical substance, method of inquiry, genealogy, scope, and finally its similarities and differences with the conventional (axiomatic) economics. The focus of the study will be upon the critical examination, analysis, dialectical interpretation, and radical explanation of contemporary capitalist economy, polity, and society. The framework of analysis combines the historical evolution and socioeconomic transformation of capitalism within which the critical examination of power relation and conflict, and their ideological implication shall be the centerpiece of discussion. This course also attempts to focus upon the topical and illustrative examples in the contemporary global economy. The division of Political Economy I and II is somewhat contextual and thus based upon the degrees of coverage of the abstract, historical, and methodological aspects of the subject in contrast with the concrete, political, and contemporary policy implications.

COURSE OBJECTIVES:

· The meaning and role of methodology in socioeconomic inquiry

· The meaning of capital as a social relation in the epoch of capitalism

· The context and tradition of Political Economy as opposed to conventional (axiomatic) Economics

· The importance of class relations and the consequence of class polarization in capitalism

· The uniqueness of capitalism as a social, political, and historical system

· The meaning of social relations, accumulation, and the dynamics of labor process

· The role of technological change in dynamics of capitalism

· The role of economic and political institutions in contemporary capitalism

· The characteristics of economic crises and economic reproduction in capitalism

· The role of ideology and ideological institutions in capitalism

· The concept of power relations in capitalism

· The relevance and significance of mediating institutions

COURSE REQUIREMENT:

The above textbooks by and large offer a range of materials that are pertinent to the objectives of this two-partite course. However, from time to time, it may be necessary to supplement the content of our discussions with additional lecture and reading materials. Therefore, the lectures and class discussions are often pivotal in the evaluation of this course. Consequently, class participation and class discussions carry a considerable weight in the completion of this study. Political Economy I requires a midterm and a final exam, and Political Economy II only a final. There shall be an informal weekly oral report on the economic and political news throughout the course. There will be written projects consist of two 5-page book reviews, for those who wish to complete only the first 2 credits (i.e., PE I), and a complete project on a relevant topic (to be determined in class) for those who wish to carry all 4 credits. The latter project is designed to satisfy the written requirements of both Political Economy I and II. Subject to constraints of time, oral presentations of the projects are also in order. Finally, participation in this course will be subject to the general requirements and University policies.

GRADE DISTRIBUTION:

P. E. I: Midterm Exams: …………………………………………. 25%

P. E. I: Final Exams: …………………………………………….. 35%

P. E. II (one Final Exam): ……………………………………….. 60%

Projects for each (Written and Oral Presentation): ………………. 25%

Weekly Oral Reports for each: …………………………………...10%

Class Participation for each: ……………………………………… 5%

GRADING SCALE:

A: 94 – 100 A-: 90 –93 B+: 86 –89

B: 82 –85 B-: 78 –81 C+: 75 –77

C: 71 –74 C-: 67 –70 D+: 64 –66

D: 60 –63 F: 59 and below.

POLITICAL ECONOMY I

TENTATIVE COURSE OUTLINE

WEEK ONE: MINI LECTURES: Historical background and genealogy of political

Economy, subject matter and scope of political economy, classical political economy (Adam Smith and Ricardo), a note on methodology of social sciences: division into positive and normative of the “elements” of the inquiry, positivism and the nature of value-free approaches to discovery, domain of ideology, ideological implication of positivism, dialectical method (internal and external change) and the dynamic movement of the social inquiries, science and the nature of scientific inquiry; history as a road map, the origin of capitalism.

Baiman, et al., Political Economy and Contemporary Capitalism, Chapters 2

and 3; Hahnel, The ABCs of Political Economy, Chapter 1; discussion and determination of class projects.

WEEK TWO: MINI LECTURES: Historical evolution of capitalism, meaning of the

social relations, macro and microeconomics, social relations and individual behavior, evolutions and historical tendencies, theory of production and exchange, meaning of commodity and commodity production, accumulation of capital, class relations and value formation; dialectic of polity, economy and society; uniqueness of capitalism.

Baiman, et al., Political Economy and Contemporary Capitalism, Chapters 5 and 6; follow up on the projects.

Informal Oral Presentations.

WEEK THREE: MINI LECTURES: Capital as a social relation, circuit of capital

contradictory reproduction, the role of competition, crises of accumulation, the role of ideology and notion of legitimacy.

Hahnel, The ABCs of Political Economy, Chapter 2; Bina, et al., Beyond Survival: Wage Labor in the Late Twentieth Century, Chapter 1 [on reserve]; Baiman, et al., Political Economy and Contemporary Capitalism, Chapter 8; follow up on the projects.

WEEK FOUR: MINI LECTURES: Production and labor process, nature of

technological change in capitalism, more on competition and the crises of reproduction.

Hahnel, The ABCs of Political Economy, Chapter 8; follow up on the projects.

Informal Oral Presentations.

WEEK FIVE:

Review of Materials for Midterm Exam

MIDTERM EXAM February 16, 2004 MIDTERM EXAM

WEEK SIX: MINI LECTURES: Dynamics of Accumulation, development of

Productive forces, competition and reorganization.

Hahnel, The ABCs of Political Economy, Chapter 10; Baiman, et al., Political Economy and Contemporary Capitalism, Chapter 29; follow up on the projects.

WEEK SEVEN: MINI LECTURES: Capitalist accumulation and dynamics of

technological change; “creative destruction” and “destructive creation” in capitalism; labor and the labor process; de-skilling, skills, and the nature of skill formation in capitalism; the necessity of turbulence in reproduction of capital.

Baiman, et al., Political Economy and Contemporary Capitalism, Chapter 23;

Hahnel, The ABCs of Political Economy, Chapter 11; Bina, et al., Beyond Survival: Wage Labor in the Late Twentieth Century, Chapter 1 [on reserve]; (in part and/or in whole, projects for the first two credits are due).

WEEK EIGHT:

Review of Materials for FINAL Exam (Tuesday, March 4, 2003)

FINAL EXAM March 5, 2004 FINAL EXAM

POLITICAL ECONOMY II

(TENTATIVE OUTLINE)

WEEK ONE: Recap of value theory and its multiple dimensions; why do we need to start

with concrete in theorizing?; the limit of axiomatic framework: a comparison with the orthodox neoclassical theory and its more fashionable version, Games Theory; the question of whole and part; the question of specificity and uniqueness of capitalism as an historical system (Marx’s Capital, Fine and Saad-Filho; Discussion).

(1) Further materials on the Pax Americana (1945 – 1979) and its unintended

mission as an international inter-state system, (2) transnationalization of the circuit of capital, and (3) historical transformation and socio-politico-economic dimensions of globalization; the question of mediating institutions and hegemony in comparison; the instruments and structure of hegemony (Lecture).

WEEK TWO: Focusing on the alleged interconnection of oil and recent war against Iraq;

revisiting the transformation of oil in the twentieth century; the meaning of global oil; revisiting the question of US “hegemony” and the meaning of the emerging multi-polar polity; the meaning of today’s war and unilateralist approach in the contemporary global polity.

WEEK THREE: PoliticalEconomy and Contemporary Capitalism, [March 29] Ch. 21:

“What Do Undergrads Really Need to know About Trade and Finance?” [March 31] Ch. 30: “Five Easy Pieces on the Economics of Tax Justice,” [April 2] Ch. 35 “The U. S. Health Care System: A Reproduction Crisis,” continuation of discussions on the World Order and Disorder.

WEEK FOUR: PoliticalEconomy and Contemporary Capitalism, [April 5] Ch. 26: “The

Asian Financial Crisis: What Went Wrong?” [April 7] Ch. 24: “Capitalism and Industralization in the Third World: Recognizing the Costs and Imagining the Alternatives,” Ch. 16: “US Labor Faces an Identity Crisis,” [April 9] Ch. 7: “Beyond Racist Capitalist Patriarchal Economics,” Ch. 14: “Falling Wages, Widening Gaps: U.S. Income Distribution at the Millennium,” class discussions on all.

WEEK FIVE: PoliticalEconomy and Contemporary Capitalism, [April 12] Ch. 25: “Lessons

from Economic Transition in Russia and China,” followed by class discussion; A mini lecture on World Order; [April 14] Ch. 15: “Single, with Children: The Economic Plight of Single Mothers,” followed by class discussion; [April 16] Ch. 13 “The Political Economy of Employment Inequality,” followed by class discussion.

WEEK SIX: Political Economy and Contemporary Capitalism, [April 19] Ch. 18 “Hidden

Inflation: An Estimate of the Cost of-of Living Inflation Rate,” followed by class discussion.

· An introductory discussion on the so-called social capital; a methodological reminder on the so-called human capital;

· More on the Political, Economic, and Institutional Framework of Pax Americana; the recognition of the notion of hegemony via the three-partite doctrine of containment;

· The polarization and melting away of ‘Third World’ segment of the system;

· Toward a complete picture: differential oil rents, globalization, and the question of war in the Middle East.

· The wrapping up discussion: toward the finish line and arrangement of the presentations [WRITTEN PROJECTS: Strictly due on Friday, April 23, 2004].

WEEK SEVEN:

Paper Projects: presentations to be arranged

All Presentations: April 26 through April 30, 2003

WEEK EIGHT:

ONE FINAL EXAM

(Tuesday, May 4, 2004: 1:30 – 3:30 p.m.)