ECONOMICS 1540 - ECONOMICS AND EVERYDAY LIFE - CHRISTENSEN - SPRING 2001

Office: Soc.Sc. 1017, 251-6622, kchrist52@aol.com. Hours: Thurs. 3:00 - 4:00 and by app’t. 

 

Texts:  

1. Required: Xeroxed packet, sold in class. Includes the required chapters from Bowles/Edwards (B/E), Understanding Capitalism, Second edition, 1993 (out of print).

2. Required: Steven Brouwer, Sharing the Pie: A Citizen’s Guide to Wealth and Power in America, Owl Books (Henry Holt, Inc.), 1998.

3. Required for EC: Baiman, Boushey, Saunders, ed., Political Economy and Contemporary Capitalism: Radical Perspectives on Economic Theory and Policy, M.E. Sharpe, 2000.

4. Highly Recommended: Folbre, Nancy, et al., The Ultimate Field Guide to the U.S. Economy, New Press, 2000.

5. Recommended: Korten, David, When Corporations Rule the World, Kurmanian Books, 1995.

6. Recommended: Harrison, Bennett, and Barry Bluestone, The Great U-Turn: Corporate Restructuring and the Polarizing of America, Basic Books, 1987. 

 

Approximate Grade Breakdown:

10% Attendance and participation in discussion and in-class exercises

30% Reading questions on B/E and Brouwer: Due dates below.

30% Take-home midterm: Due date TBA, probably March 8. 

30% Take-home final: Due Tues., May 1 at 4:30. NO late finals!

 

Policies and Procedures

1. Attendance: If you are late, you will receive one-half attendance credit for that class session.

 

2. Illness: If you have a respiratory infection (cold, flu, cough, etc.), do NOT come to class! Leave me a message before class at 251-6622 and you will be excused from attendance. If there are assignments due that day, email them to me at kchrist52@aol.com by class-time. You are responsible for making up any material you miss while absent.

 

3. Class participation: I strongly encourage you to ask questions and to participate in class discussions. To insure participation by the maximum possible number of students, I may not always “call on” people in the order in which they raise their hands.

 

4. Email: You are expected to have a functioning email address and to check it on a regular basis. You may use either the Purchase system or a commercial provider. If you do not currently have an email address, so to the Computer Center (in the basement of this building) to get one immediately. Send me your address (to kchrist52@aol.com) when you get it.

 

5. Reserve: All required texts (including Bowles & Edwards) and many recommended texts are on reserve.

 

6. Typing: Type all assignments. Staple your paper and number the pages.

 

7. Reading questions: Reading questions on Bowles/Edwards and Brouwer will be due approximately weekly, and will be graded by a grader using a check/check-plus/check-minus system. (A check-plus is roughly equivalent to an “A,” a check to a “B/C” and a check-minus to a “D.”)  Reading questions will tend to "run ahead" of lectures to give you time to complete the take-home exams.

8. Late papers: No late assignments or exams will be accepted. No exceptions. If you are ill, email me the assignment at kchrist52@aol.com by class-time.

 

9. Incompletes: No incompletes granted except for medical emergencies. A doctor’s note will be required.

 

10. Extra credit: You may earn extra credit at any time during the semester by writing a three-to-five-page summary of any article from Baiman, Boushey, & Saunders. All EC papers due by Thurs., April 26, 4:30.

 

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SCHEDULE OF CONCEPTS AND ASSIGNMENTS

I. Basic Definitions

            A. Paradigm/Conceptual Framework - Three major paradigms in economics today

            B. Scientific Method

            C. Capitalism

ASSIGNMENT: Reading questions on B/E ch. 1 and 3 DUE Thurs., Jan. 25.

 

II. A Brief History of Capitalism

            A. Origins of capitalism in Western Europe/Globally

            B. Transition to capitalism in the U.S.

            C. The role of slavery in the transition; The relationship of economic change to racism

ASSIGNMENT: Reading questions on B/E ch. 4 DUE Thurs., Feb. 1.

ASSIGNMENT: Reading questions on B/E ch. 6 DUE Thurs, Feb. 8.

 

III. The Political Economy Paradigm

            A. Context for paradigm development

            B. Definition of class society - Cornland!

            C. Are capitalist societies class societies?

            D. The circuits of capital, amended

            E. Determinants of wages; of bargaining power; CJL (cost of job loss)

            F. Labor and labor power; ULC (unit labor costs)

            G. Critique of paradigm

ASSIGNMENT: Reading questions on B/E ch. 10 DUE Feb. 15.

ASSIGNMENT: Reading questions on B/E ch. 11 and B/E ch. 15 (p. 357-369 only) DUE Feb. 22.

 

IV. The International Economy

            A. Balance of payments and currency values

            B. The Bretton Woods System

ASSIGNMENT: Reading questions on B/E ch. 7 DUE Thurs., March 1.

 

V. Economic Inequality in the U.S.

            A. Trends in wealth and income inequality

            B. The contribution of tax policies to inequality

            C. Poverty

ASSIGNMENT: Reading questions on Brouwer ch. 1, 2, 3, 4, 5 DUE Thurs., March 22.

 

 

VI. The Changing Nature of U.S. Corporations

            A. Pay inequality within corporations

            B. “Financialization” and short-run horizons

            C. Unions under siege

            D. Foreign investment: The search for cheap labor

ASSIGNMENT: Reading questions on Brouwer ch. 6, 7, 8, 9, 10  DUE Thurs., March 29.

ASSIGNMENT: Reading questions in Brouwer ch. 11, 12, 13 DUE Thurs., April 5.

 

VII. The Impact of Corporate Money on U.S. Politics

            A. Trends in “hard” and “soft” money contributions

            B. The alienated electorate

            C. The social impact of de facto one-party politics

ASSIGNMENT: Reading questions on Brouwer ch. 14, 15, 16 DUE Thurs., April 12.

 

VIII. Solutions/Responses

            A. Are Western European social democracies a model for the U.S.?

            B. The role of unions

            C. How do we get there from here?

ASSIGNMENT: Reading questions on Brouwer ch. 17 (p. 131-133 only), 18, 19 DUE Thurs., April 19.

ASSIGNMENT: All extra credit papers (from Baiman, et al.) due Thurs., April 26.

 

TAKE-HOME FINAL EXAM - DUE Tuesday, May 1 at 4:30. No late exams accepted.

 

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READING QUESTIONS ON BOWLES & EDWARDS, SECOND EDITION

CHAPTER 1

1.Summarize the changes caused by the coming of capitalism.

CHAPTER 3

3. Summarize the views of four major contributors to the political economy paradigm.

CHAPTER 4

4.A. Define surplus, labor process, technology, division of labor.

4.B. Define depreciation. Explain the relationship between gross product, net product, surplus product, and depreciation.

CHAPTER 6

6.A. Define class; explain its relationship to property.  

6.B. Define capitalism, commodity, and wage labor.

6.C. Distinguish wealth from income.

6.D. Define profit. What is the source of profits?

CHAPTER 10

10.A. Why do B/E say that a capitalist economy involves command?

10.B. Define unit labor cost (ULC) & explain its determinants.

10.C. Use the concept of ULC to explain the conflict between K’ists and workers in the workplace.

10.D. What is meant by the extraction of labor from labor power?

10.E. Define the cost of job loss (CJL). What is the relationship between the CJL and the power of capitalists over workers?

CHAPTER 11

11.A. Define lockout, runaway shop, parallel plants. How do they affect K’istspower  over workers?


11.B. Describe the three major systems of labor control.

11.C. How is technical change currently "biased"? Explain.

11.D. Describe deskilling. Why might employers deskill?

11.E. What is the purpose of unions? What percentage of the US workforce is unionized?

11.F. Define profitability; efficiency. Critique the neoclassical idea that profitability equals efficiency.

CHAPTER 15 (p. 357-369 only)

15.A. Explain the reasons for the high employment profit squeeze.

15.B. Discuss the functions unemployment plays for US K'ists. 

CHAPTER 7

7.A. Define accumulation. 

7.B. Why are capitalists driven to change technology?

7.C. Define a social structure of accumulation. Briefly describe the three major SSAs in US history.

 

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READING QUESTIONS ON BROUWER

CHAPTER 1 - “Sharing the Pie

1. Describe wealth distribution in the U.S. How has this changed in the past 20 years?

CHAPTER 2 - “The Sinking Majority

2.A. Describe income tends for most Americans in the past 20 years. Why has income for most American families not fallen more than it has?

2.B. Describe income trends for the very wealthy in the past 20 years. What is the source of most of their income?

CHAPTER 3 - “Well-to-Do-Fare

3.A. Describe the contribution of tax changes to increasing income inequality.

3.B. Describe the differential impact of the mortgage tax deduction.

3.C. Describe the financial impact of tax breaks/loopholes.

CHAPTER 4 - “Have Taxes Been Killing?

4.A. Describe changes in the total tax burden vs. the distribution of that burden in the past 20 yr.

4.B. Define capital gains. Who benefits from capital gains tax reductions?

4.C. Describe the impact of a flat tax (in terms of income inequality).

CHAPTER 5 - “Punishing the Poor”

5.A. Describe the changes in the percent of Americans in poverty; of American children in poverty.

5.B. Why are the poor poor?

CHAPTER 6 - “Domination by the Corporation

6.A. Since the 1950s, how have pay and job tenure changed for ordinary workers vs. top executives at Fortune 500 corporations? How have corporate profits changed?

6.B. Describe trends in industrial concentration since the 1960s.

6.C. Explain the philosophy of supply side economics. Does the evidence support this theory?

CHAPTER 7 - “Merge, Churn, Money to Burn

7.A. What was the purpose of the corporate tax breaks of the 1980s? How was the money used?

7.B. Describe the impact of buy-outs (or threatened buy-outs) on company policies.

7.C. Discuss the trends and potentially troubling implications of concentration in the media and communications industries.

CHAPTER 8 - “War Against Workers

8.A. Where did industrial productivity rebound in the 1990s? Why?

8.B. Describe the changing nature of work in America.

 

CHAPTER 9 - “Labor Discipline

9.A. Describe the business/labor “contract” of 1945-1975.

9.B. What event signaled the beginning of the modern assault on unions?

9.C. How large is the union wage premium?

CHAPTER 10 - “Where Have All the Good Jobs Gone?”

10.A. Describe the conditions in the maquiladoras (and other areas of U.S. corporate investment.)

10.B. Describe the impact of NAFTA on American workers; On the balance of trade with Mexico.

10.C. Are unskilled workers the only ones whose jobs are at risk from globalization? Explain.

10.D. How has the history of authoritarian governments (and U.S. support for such governments) contributed to “development” in some countries?

CHAPTER 11 - “The Triple Deficit Scare

11.A. Define a trade deficit/surplus. Historically which has the U.S. run? When did this change? Why?

11.B. Define a budget deficit. What caused the enormous increases in the deficit in the 1980s?

11.C. Is a budget deficit necessarily bad? Explain.

11.D. Critique the idea that the Social Security system is in crisis. Who advances this idea?

CHAPTER 12 - “The Military-Industrial Complex

12. How has the Pentagon justified military spending since the end of the Cold War? Who benefits?

CHAPTER 13 - Wheeling and Dealing

13.A. How much has the S & L bailout cost taxpayers? Explain the events/policies which led to this  debacle.   13.B. Describe the “financialization” of business.

CHAPTER 14 - “One-Party Politics

14. Discuss the impact of corporate money on political discourse in the U.S. today.

CHAPTER 15 - “The Maintenance of Privilege

15.A. Describe the economic context for the relatively democratic (for white men) polity in the early American colonies. How did this context change in the late 1800s?

15.B. Describe some of the institutions by which elites ensure their continued political influence.

CHAPTER 16 - “Authoritarian Democracy

16.A. Describe the rise of right-wing Christianity in the U.S. Relate this to trends in the economy.

16.B. How does the judicial philosophy of states’ rights increase corporate political power?

16.C. Comment on the significance of Buckley vs. Valeo.

CHAPTER 17 - “Working in a Fair Society” (p. 131-133 only)

17. According to Brouwer, why is there no social democratic movement in the U.S.?

CHAPTER 18 - “Lessons form the Rest of the Advanced Capitalist World

18.A. For the U.S. vs. Western Europe, compare: wages and benefits, unionization rates, productivity rates, poverty rates.

18.B. Discuss the impact of a “carrot” vs. a “stick” approach to labor management on productivity.

18.C. What does Brouwer see as the main threat to social democracy?

CHAPTER 19 - “Our Country is So Rich

19.A. Describe standards of fairness re: income inequality in U.S. vs. Sweden. Why do they differ so?

19.B. Describe the attitudes of big campaign contributors vs. ordinary citizens re: economic security and government’s proper role.

19.C. Describe voter turnout in the U.S. vs. Western Europe.

19.D. Why is a political program similar to Brouwer’s not offered by any political party?

CHAPTER 20 - “If We Decided to Tax the Rich

20.What types of programs does Brouwer advocate? How would he pay for them? How would be build political support for his programs?


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I have read and accept the policies and procedures for this class listed on p. 1 and p. 2 of the syllabus.

 

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