SYLLABUS  

Econ 100
Real World Macroeconomics:

Clashing Views

 

   All readings have to be done before the class for which they are assigned.

 

Take advantage of the companion website for practice problems !

 

Jan 29  Introduction to the Course: Controversies and the Art of Discussion

 

 I. The Nature of Economics and Economies

1. What is Economics?

Febr 3rd

Thomas Sowell (2000) “What is Economics?” Ch. 1 in Basic Economics: A Citizen’s Guide to the Economy Basic Books, pp. 1-4.  

Riddell, Tom, Jean Shackelford, Steve Stamos, Geoffrey Schneider (2002) “Economics as a Tool for     Critical Thinking in a Changing Global Economy,” Part 1 in Economics: A Tool for Critically Understanding Society Boston et. als: Addison Wesley, pp. 1-16.

 Schwartz, Thomas and Frank Bonello (2002) “Economics and Economists: The Basis for Controversy,” Introduction in Taking Sides. Clashing Views on Controversial Economic Issues Guilford, CT: McGraw-Hill/Duskin, pp. xii-xvii.

 Robinson, Joan (1977) “What are the Questions?” Journal of Economic Literature Vol 15, No. 4 (Dec), pp. 1318-1339. Read only ‘I. Introduction,’ pp. 1318-1320. www.jstor.org

Febr 5      Case and Fair, chs. 1 and 2

 2. How do We Assess Different Claims?

Febr 10   

            Chaffee, John (2000) “Stages of Knowing,” in The Thinker’s Way 8 Steps to a Richer Life.  Boston,        New York, Toronto, London: Little, Brown and Company, 38-43.

            Kahane, Howard (1984) Logic and Contemporary Rhetoric The Use of Reason in Everyday Life, Belmont, CA: Wadsworth Publishing Company, 4th edition, pp 25-28 and 34-42

 

3. Clashing Views in Practice: The Roots of Poverty

Febr 12, 17

             Ed Royce (2002)  “Towards a Structural Perspective on Poverty and Inequality,” Sept, mimeo.

 Michael Katz (1998) “The Invention of Welfare,” and “The American Welfare State,” in The Price of Citizenship New York: Metropolitan Books, pp. 1-32.   

Armey, Dick (1995) “Freedom for the Poor,”  ch. 13 in The Freedom Revolution The New Republican House Majority Leader Tells Why Big Government Failed, Why Freedom Works, and How we Will Rebuild America. Washington, D.C.: Regnery Publishing, pp. 227-239.

Cozzarelli, Catherine, Anna V. Wilkinson, Michael J. Tagler (2001) “Attitudes Toward the Poor and Attributions for Poverty,” Journal of Social Issues 37(2), pp. 207-227

 Bowman, Karlyn (2002) “Attitudes about Welfare Reform,” American Enterprise Institute, Social and Political Studies http://www.aei.org/ps/psbowman11.pdf

 

4. Social Contracts Differ Across Time and Countries

Febr 19

Charles Sackrey and Geoffrey Schneider (2000) “The Middle Way: Swedish Social Democracy,” ch. 5 in Introduction to Political Economy pp. 64-81.

    

Febr 21 Practice Excel Problem, US-GDP, 1929-2001

II. Macroeconomic Issues and Measurements

    1. Gross Domestic Product

Febr 24, 26    a) Meaning and measurement

             Case and Fair, chs. 5 and 6 

  Cloud, Kathleen and Nancy Garrett (2000) “Counting Women’s Work,” in Dollars and Sense Real World Macro 17th Somerville, pp. 9-10.

             Homework assignment for Febr. 28th: Calculate real GDP and the real wage in the US between 1947 and                        2000 (based on the data in this file).

                 Make three graphs:  Graph 1 should show the development of nominal and real GDP; Graph 2 should show the development of the nominal and real wage; and Graph 3 should show the development of the real wage index.

 March 3rd    b) Growth, welfare and inequality  

               Income Distribution in the U.S. (U.S. Census Bureau, P60-204)

                 “A Reality Check on the American Dream,” Financial Times Sept 6, 2001, p.5 (class handout)

                  “Is Inequality good for you?” Financial Times Dec 7/8, 2002 FT Weekend, pp. I and II. 

Krugman, Paul (2002) “The Disappearing Middle,” New York Times Oct 20th. Retrieved from NYT         webpage on Oct 20th, 2002

2. Unemployment and Inflation

March 5          Case and Fair, ch. 7

  III. A simple Keynesian Model of the Commodity Market without government

March 10, 12, 24             Case and Fair,  ch. 8

  Midsemester Break: March 15 - 23rd

IV. The Federal Government and Fiscal Policy

  1. A simple Keynesian model including the government

  March 26     Case and Fair, ch. 9

2. Do government deficits really matter?

March 31

Issue 12 in Taking Sides 7th edition

    Alan Greenspan (1989) “Deficits do Matter,” Challenge (January/February)

    Robert Eisner (1991) “Our Real Deficits,” Journal of the American Planning Association (Spring)

 

3. The Bush tax cut of 2001

 April 2 

 Schwartz and Bonello (2002): “Issue 10: Is President George Bush’s Tax Cut Plan Good Economic Policy?” pp.216-230.

    Yes: Peter Ferrara (March 2001)

    No: Isaac Shapiro and Robert Greenstein (February 2001)

 

  4. Fiscal Policy in 2003  

April 7 

The Republicans’ proposal:

President George Bush, "State of the Union Address," January 29th, 2003.

The Democrats’ proposal:

The Democrats' Response to the 'State of the Union Address," January 29, 2003.

  5. The Economic Consequences of a War on Iraq  

April 9

          William Nordhaus “The Economic Consequences of War with Iraq,” December 2002,             http://www.amacad.org/publications/monographs/War_with_Iraq.pdf 

Jeffrey Sachs “The Economic Consequences of War with Iraq,” The Cyprus Monitor http://www.tech4peace.org/nqcontent.cfm?a_id=1808

  V. The Banking System and Monetary Policy

  April 14, 16, 21

            Case and Fair, chs. 10, 11, 12 

            Krugman, Paul (2001) “Fear Itself,” The New York Times Magazine Sept. 30th

  VI. AD and AS

April 23

VII. The Global Economy

 April 28, 30, May 5

Comparative Advantage and Free Trade

Case and Fair, ch. 19

 Schwartz and Bonello (2002) “Issue 13: Is Free Trade a Viable Option for the New Millenium?” pp. 280-305.

    Yes: Robert Samuelson (1998)

    No: Patrick Buchanan (1998)

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