ECONOMICS, FREEDOM, AND HUMAN VALUES

 

 

COURSE SYLLABUS

ES 340E-01 and REL 324E-02

 

STETSON UNIVERSITY

 

DONALD W. MUSSER, RELIGIOUS STUDIES

RANJINI L. THAVER,  ECONOMICS

 

SPRING 2001

Tuesday and Thursday, 4-5:15 PM  322 Elizabeth Hall

 

We gain freedom only as we accept responsibility

for using it with mindfulness of the needs of the whole . . .

True freedom in either economic or political life comes only

with mindful responsibility.      - David C. Korten

 

Success may be due to God alone, but failure is due to self.  For God made this world a world of liberty, gave each the capacity freely to choose, and nourishes each in a multiplicity of ways, so that even the power to say yes is given as a gift.    -  Michael Novak

 

Marxism has failed, but the realities of exploitation and marginalization

remain in the world.    - Pope John Paul II

 

If you want to know what is new in the modern world,

it is the modern corporation.    - James Coleman

 

 

 

 

 

 

COURSE OVERVIEW

 

            The latter half of the twentieth century has boasted an exponential growth of  economic prosperity and the proliferation of freedom of thought and political democracies.   Among the outcomes has been unparalleled prosperity and marvelous creativity of minds set free to explore and experiment.  Taking their signals from Western democracies, governments around the globe have embraced free enterprise and freedom of expression in their attempts to achieve wealth and prosperity for their populations.

 

           

            Despite these celebrated accomplishments and aspirations for the new millennium, however, contemporary societies continue to suffer enormous poverty among significant sectors of their populations.  Newly emerging freedoms seem to be matched by new totalitarian hegemonies, and even in the most prosperous regions human behaviors have manifested a murky darkness that undermines traditional values.  Prosperity has not necessarily reduced the ugliness of hate crimes, teenage violence and suicides, rape, and failed marriages.  The advances of freedom and economic development around the world seem to be threatened by a global decline of civility.  We are puzzled over the mixed results of a rationality unleashed from traditional constraints and a market increases wealth but not necessarily happiness.

 

            The mantra of economics has been that freedom  requires a laissez faire market system in which markets play the central role of  maximizing efficiency in the face of scarcity,  rendering the maximum output possible. This material bounty in turn promotes the greatest happiness for individuals and well being for societies.  The free market system, moreover, has been anchored upon the fundamental rights of private property.  Despite this rhetoric about these fundamental freedoms and their utilitarian outcomes, however, extensive poverty continues in the West, and an increase in absolute poverty for the masses in the developing and underdeveloped worlds.  A fundamental question that we will address is whether or not the concept of market efficiency actually results in prosperity for the many and not just the few.  We shall investigate whether our preoccupation with efficiency and scarcity has and can bring the promise of happiness and material well being.  Is it possible in thinking of the economy as an amalgam of individual agents that we have lost sight of the role of the human values of trust and altruism, resulting in both an impoverished quality of life and also a less efficient economy?

 

            In order to undertake this study our course divides into two parts.  In Part I we undertake a study of the conceptual foundations of economics (for example, in the thought of Smith, Friedman, Hayek, Nozick, Sen, and Marx) and freedom (for example, in the writings of Aristotle, Augustine, Hobbes, Mill, and Camus).  In Part II, then, having established a basic understanding of economics and freedom, we pursue specifically proposals of prominent twentieth theorists (such as Michael Polanyi, Novak, Gutierrez,  Korten, and dos Santos) about the social and economics structures that are conducive for prosperity in a free society.       

 

 

COURSE GOALS

 

            The goals of this course aim to address the interests of the Freedom Project, the mission of Stetson University, and the purposes of the Departments of Economics and Religious Studies.  Among the central goals are for students to:

1.  Develop an understanding of the concept of freedom, including the notions of free individuals, free societies, and personal responsibility.

2.   Discern the basic concepts of economics, including the ideas of a free market.

3.   Understand the basic ideals of capitalism.

4.   Comprehend the significance of political democracy and its socialist alternatives. 

5.   Expose the significance of world-views with regard to the content of human values.

6.   Commit to their own views of personal and social prosperity.

 

N. B.  The course is open to all students who hold sophomore academic status by Spring 2001.  It meets a requirement for both Economics and Religious Studies majors and minors, counts toward the Applied Ethics minors, and is designated as an “E” or “Ethical Decision Making” course.  The course will be limited to 20 students.

 

      Note also that required reading is marked below as "Must;" recommended reading is marked as "Should;" and an asterisk (*) indicates a "must" reading that you should purchase in the University Book Store.  All readings not for purchase will be available in the University Library.

 

COURSE OUTLINE

 

 

Session 1 (Jan. 16):  Introduce Course, Requirements, Expectations.

 

Conceptual Foundations of Economics

 

Session 2 (Jan. 18):  Fundamentals Of Economics And The Core Assumption Of A Free Market System

 

Readings:        McConnell and Brue, Principles of Macroeconomics, Chapter 1.

                                    Must.

            Marc Breslow, John Miller, and Richard Rosen, Real World

                        Microeconomics, Dollars and Sense, Chapter 4. Must.

            Gary S.  Becker, The Economic Approach to Human Behavior, Chapter 1, Pp. 3-14.    Should.

 

 

 

 

 

 

Session 3 (Jan. 23):  Scarcity And Its Implications

 

Readings         Garret Hardin, “The Tragedy of the Commons;”  “The Tragedy of the Commons, Revisited,” in Valuing the Earth, Herman Daly and Kenneth

            Townsend, eds., MIT Press, 1994 . Must.

                        Simon, Julian L.  “Resources, Population, Environment:  An Oversupply of

            False Bad News,” Science, Vol. 208,  June 1980.   Must.                                     

Simon, Julian L.  Ultimate Resource, Chapter 1.  Should.

 

Sessions 4 and 5 (Jan. 25 and 30):  Conceptual Foundations Of A Free Market 

 

Readings :       Adam Smith, The Wealth of Nations, Book 1.  Should.

                                    Adam Smith, The Theory Of Moral Sentiments, Part III, Should.

            Robert Heilbronner, Teachings From The Worldly Philosophy, pp.73-89; 197-214. Must.  (From Adam Smith, Jeremy Bentham, and William Stanley Jevons)

                        Milton Friedman, Capitalism and Freedom, Chapter 1. Should.

                        Milton Friedman,  Free To Choose, Chapter 1. Must .

Friedrich A. Hayek, Individualism and Economic Order, Chapter 1. Must.             Robert Nozick, The Nature of Rationality, Chapter 3. Should.

 

 

Sessions 6 and 7 (Feb. 1 and 6): Challenges to the Assumptions of the Market

 

Readings:        Amartya Sen,  On Ethics And Economics, Chapter 1. Must.

            Amartya Sen, “Rational fools,” Philosophy And Public Affairs, 6, Summer 1977.  Should.

Allen Buchanan, Ethics, Efficiency and the Market, Chapter 2.  Must.

Kenneth Arrow, Social Responsibility and Economic Efficiency, Chapter 1. 

            Should.

Charles Lindlum, Politics and Markets, Chapter 6.  Should.

Daniel Bell, The Cultural Contradictions Of The Market, Chapter 1.Should.

John Rawls, A Theory of Justice, Chapter 2. Should.

Marx and Engels, Manifesto of the Communist Party.  Must.

            Maryanne Ferber and Julie Nelson, eds., Beyond Economic Man, Chapter 3. Must.

 

Session 8 (Feb. 8): A Meeting of the Minds

 

 

 

 

 

 

 

 

PART II

 

CAPITALISM, CORPORATIONS, AND HUMAN VALUES

 

Sessions 9 and 10 (Feb. 13 and 15): A Free Society

 

Readings:        *Michael Polanyi, The Logic of Liberty (Must: chapters to be assigned) and Knowing and Being, pp. 49-72. Must.

 

 

 

Sessions 11 and 12 (Feb. 20 and 22): Market Capitalism and the Corporation

NOTE:  DINNER AND BOOKFEAST WITH PROFESSOR MICHAEL NOVAK ON MONDAY, FEBRUARY 19.  CLASS WITH DR. NOVAK ON TUESDAY, FEB. 20, FOLLOWED BY LECTURE IN ALLEN HALL.  REQUIRED!

 

 

Readings:       *Michael Novak,  The Spirit of Democratic Capitalism, Parts I and III.

                                    Must. 

                           Theotonio dos Santos, “The Structure Of Dependence”, in K. T. Fahn and

                                    Donald C. Hodges, Readings in US Imperialism.  Should.

 

Sessions 13, 14, and 15 (Feb. 27, March 1 and 13): Market Capitalism and Human Values

 

Readings:       

                        Gustavo Gutierrez, A Theology of Liberation, Chapter 2.  Must.

                                    Michael Novak, But Will It Liberate?, Pp. 33-64.  Must.

                                    *Francis Fukuyama, Trust:  The Social Virtues And The Creation Of

                                                Prosperity, Free Press, 1995.  Must.

                        Serge-Christophe Kolm, “Altruism and Efficiency,”  Ethics, ENG;

                                    94 (October, 1983):  18-65.  Must.

Steve Onyeiwu, “Altruism and Economic Development: The Case       of  the Igbo of Southeastern Nigeria,” Journal of Socio-   Economics, 26 (1997):  407-420.  Must.
                        Yehuda Don, “The Importance of Behaving Altruistically: Altruism

      as an Efficiency Boosting Factor in the Kibbutz,” Journal of       Rural Cooperation, ENG; 24 (1996):  17-25.  Must.

 

Session 15 (March 15): A Meeting of the Minds

 

 

 

 

 

 

 

Conceptual Foundations Of Freedom

 

 Sessions 16 and 17 (March 20 and 22): Formative Views of Freedom  

 

Readings:        Aristotle; Politics, Book III, Chapters 1-6.  Must.

                        Augustine, On Free Will, Book III, and The Spirit And The Letter, Articles              52-58.  Must.

 

Sessions 18 and 19 (March 27 and 29): Classical Views of Freedom

 

Readings:        Hobbes, Leviathan, Introduction:  Part I, Chs. 6 And 13;  Part II Ch 17.

                                    Must.

                        *J. S. Mill, On Liberty.  Must.

 

Session 20 (April 3): A Contemporary View of Freedom

 

Reading:          *Albert Camus, The Myth Of Sisyphus.  Must.

 

Session 21 (April 5):  A Meeting of the Minds  

 

Market Capitalism and Human Values

 

Session 22 and 23 Bookfeast,Discussion, and lecture with with Guest Experts.  Reading:  *David C. Korten, The Post-Corporate World.  Must.

Sessions 24, 25, and 26.  Empirical Research Reports

Session 27  Course Evaluation

Session 28  TBA

 

 

 

COURSE STRUCTURE

 

 

          A.  Seminar With Student Groups.  The course will be taught as a seminar in which students will be divided into four groups of five students in each group.  During most class sessions one of these groups, the “lead group,” will facilitate class discussion of the readings for the day.  The discussion will be prompted by questions forwarded to the “lead group” prior to the class session.  Each student will formulate two questions for discussion, one which will be contextual to the readings and the other a more personal and speculative question.  The “lead group” will ruminate over these questions and distill from them a set of questions that will form the locus of class discussion. The “lead group” may even consider synthesizing several questions into new questions.  At other times, the “lead group” may explore questions that other students had not contemplated.  During preparation for class and during the class discussions the instructors will serve as facilitators, discussants, and gate keepers.

 

             B.  A Meeting of the Minds.  Based on the PBS program hosted by Steve Allen, at three times during the semester (Sessions 8, 15, and 21) one of the student groups will personify and role play an intellectual inquiry based upon the material read and discussed in a particular section of our study; namely, Session 8 on the conceptual foundations of economics, Session 15 on prosperity and freedom in contemporary society, and Session 21 on the conceptual foundations of freedom.  Based upon several issues formulated by the student group in consultation with the instructors, students will take on the “personas” of three or four thinkers that we have read and discussed.  These sessions will be open to the entire University community and will be video taped for possible use elsewhere.

 

            An example of the first meeting of minds on the conceptual foundations of economics, for example, four students from the selected group may choose to role play the ideas of Garrett Hardin, Adam Smith, Milton Friedman, and Amartya Sen.  With the assistance of the instructors the students will choose a lively topic and prepare to discuss it under the monitoring of the fifth student who will serve as the host and guide.

 

            C. Group Notebook.  Additional conversation on the course topics will take place in the group notebook.  Most weeks the instructors will formulate a question for discussion that each group will respond to in writing.  The five students in a group write and response to the question and also to the writing of each student who has written previously.  Experience indicates that lively interchanges occur, often leading to discussion over coffee late at night.

           

            For example, the first Group Notebook assignment might be to “Define prosperity for yourself.”  Each student in the group will pen up to a one page response to the prompt.  Additionally, the second entrant will make marginal reactions to the first entrant.  The third entrant will then make marginal comments on both the first and second entrees, and so forth.  All marginal comments will be initialed.  Once all entrees are complete, one of the instructors will join the discussion by making his or her marginal notes to the entrees and to the students’ notes.  Further assignments will include prompts such as:

·       In what ways would expecting to inherit a windfall affect my motivation to make money?

·       Does religion encourage competition between free individuals?

·       Does the objective of efficiency enhance or hinder social relations?

·       Are competition and trust compatible in human relationships?

·       Does altruism make economic sense?

 

            D.  Credo.  On the first meeting of the course each student will submit, before they commence to read, their personal view of human freedom and economic prosperity.  The instructors will provide some food for thought for student thinking such as the following questions: What is wealth?  What is prosperity?  What is happiness?  What are the limits of freedom, if any?  What claims does society have on a free individual, if any?  Why are you a capitalist?  A socialist?  The instructors will return these papers to the students with notations.

 

            Toward the middle of the course each student will meet with one of the instructors to discuss the development of their thinking on human freedom and economic prosperity.  For the final examination in the course each student will submit a reformulated Credo that articulates his or her developed position.

 

            E.  Empirical Research Project/Contest.  During the course each student will propose and complete an empirical research project on a topic pertinent to the course and of current interest in the local community of the University.  The instructors will consider well-conceived joint research projects.  A ten to twelve page paper, documented, and in good style, will be presented by the last day of class.  The writer/s of the best paper in the class will receive financial assistance to present the paper at an appropriate conference during the next academic year.  We have budgeted for this item.

 

            The research project will focus on actual issues under discussion and debate in Volusia County.  Students will investigate how the broad issues of prosperity, freedom, and human values manifest themselves empirically in the issues of a market economy and major corporations.  Among current topics are the following:

 

1)     Walmart.  The public has divided over the proposed construction of a Walmart Supercenter within the city limits of DeLand.  Will this increase economic freedom and prosperity for the citizenry?  Or, will it create vacant store fronts, traffic snarls, and unnecessary urban sprawl?

2)     Victoria Square. Approval has been granted for a housing development for up to 18,000 residents that will double the urban population.  Will this enhance prosperity?  Will the project degrade the environment? 

3)     Dominos Pizza and Stetson University.  How will the agreement between Stetson University and the local Dominos pizza outlet for exclusive rights to campus delivery of food affect Stetson University’s different constituents; as well as Dominoes competitive edge in the pizza market?

4)     International Speedway Corporation. Should public tax money be used to fund the construction of a walkway over a busy public highway to the Speedway?  

 

            F.  Expert Discussants.  Periodically, experts from the Stetson faculty will be invited to sit in on a class session and join in the conversation.

           

            G.  Book Feasts.  Stetson has a long history of having an intense book discussion around dinner.  Typically, twenty faculty will commit to reading a current book with side appeal and to join in a free wheeling discussion.  In exchange, the faculty person is provided a free book and a hot meal.

 

            We propose and have budgeted for two book feasts that will be sponsored by the course and administered by our students.  Of course, our students will be present, unlike our usual University faculty-only book feasts.  They will join with about twenty faculty and, we hope, the author of the book for a discussion over dinner.  Additionally, we would expect the author, if present, to deliver an appropriate public lecture and to meet with the class.

REQUIREMENTS AND GRADING

 

1.   Attendance is required.  More than one unexcused absence will negatively impact your grade.

2.   Submission of carefully structured questions for class discussion.  Graded for quality and timeliness.  20% of grade.

3.   Participation in group leadership of classroom discussion, meeting of the minds sessions, and active involvement in class discussions.  20% of grade. 

4.   Group Notebook.  Graded on quality and timeliness.  20% of grade.

5.   Empirical Research Project.  20% of grade.

6.   Credo on human freedom and economic prosperity.  20% of grade.