Political Science 342 Spring, 2013 Dr. Cohen
POLITICS AND THE ECONOMY
This course explores the relationships between politics and economic life in the contemporary world. In particular, it will focus on the various interactions between market capitalism and the world of political action and public policy, and approach these interactions at three different levels:
- The different theoretical traditions in classical and contemporary political economy, which focus on the nature of modern capitalism and the ways it shapes modern politics
- Comparative Political Economy, which studies the different ways in which political economies are structured on the national level. Here we will focus on the political economy of the US and of China.
- International Political Economy, which studies the ways in which global patterns of economic and political power shape the political and economic fates of states and citizens. Here the discussion will center around the debate over “globalization”.
In the process, we will try to gain an understanding of the many ways in which our political life is shaped by market capitalism, the ways the market itself is shaped by political action, and the difficult choices these relationships pose for us in an increasingly interconnected and interdependent world. In particular, the discussions will center round the troubled relationships between capitalism and democracy, two of the defining values in contemporary political life.
From the emergence of capitalism and the modern state until the early 20th century, the study of the relationships between politics and economic life was well known under the rubric of “Political Economy.” The separation of the disciplines of political science and economics (and the other social sciences), however, led to decades of neglect of this kind of study. In recent years, though, there has been a resurgence of interest in political economy, and the topic is now the focus of work in all of the social sciences. In this course, we will draw upon the work of scholars in a number of fields to try to put together a picture of the relationships between politics and economic life in the modern world and the choices and challenges they force us to confront. As you will see, almost every issue in the study of “political economy” is the subject of fierce debate, even the meaning of the term itself. This course is organized around my own positions in these debates, which will become clear as we go along. But the aim this semester is not to provide answers so much as to stimulate thought and discussions about the very important issues raised in this field of study and debate.
READINGS:
The following books are required reading for the course and are available for purchase in the College bookstore:
James A. Caporaso and David P. Levine, Theories of Political Economy. (Cambridge) Marc A. Eisner, The American Political Economy. (Routledge) Doug Guthrie, China and Globalization. (Routledge) Dani Rodrik, The Globalization Paradox. (W.W.Norton)
Additional readings may be included over the semester, and will be posted on MyWestminster and/or passed out in class.
COURSE OUTLINE:
The course readings and discussions are organized around three general sections. First, we will review the major classical and modern perspectives and debates on political economy. These range from broad discussions of the nature of capitalism to analysis of the relationships between the state and the economy in the contemporary world. Second, we explore the field of comparative political economy. This area of study focuses on the different ways in which states and economies are organized in different countries. Our focus here will be on the US and China, two very different political economies but the ones which will have the most impact on the evolution of capitalism and democracy over the coming decades. Third, we will explore the field of international political economy, with a focus on the debates over the nature and impact of globalization. As will become evident, the issue of globalization runs throughout the course, and the last sections will bring us back to the fundamental questions raised at the beginning of the course. (More generally, these sections are not self-enclosed – key themes and debates which are the focus of one section will nevertheless be discussed and developed in others.)
NOTE: I hope to stay as close this schedule as possible, but it is flexible. We can spend more or less time on any given topic or reading, depending on interests and the class discussion, and may take detours in which extra readings are used to explore a particular topic in more depth. We have extra time at the end of the semester to catch up if we need to.
A) The Major Theories and Frameworks of Political Economy. This section introduces the main frameworks and approaches to understanding the nature of capitalism and its relationship to politics and democracy. It has two sub-sections: we first explore the classical theories and debates regarding capitalism, and then turn to contemporary frameworks for understanding the relationships between the state and economy in contemporary political economy.
1. Capitalism: The Classic Debates.
January 15 – Course Introduction: Politics, Economics, and Capitalism. Reading: Caporaso and Levine, Introduction and Chapter 1.
January 17 – Classical Political Economy: Smith and Ricardo. Reading: Caporaso and Levine, Chapter 2
January 22 – No Class (Monday Classes Meet).
January 24 – Marxian Political Economy. Reading: Caporaso and Levine, Chapter 3
January 29 – Neo-Classical Political Economy…and “Economics”. Reading: Caproaso and Levine, Chapter 4.
January 31 – Keynesianism. Reading: Caporaso and Levine, Chapter 5.
2. Debates on State and Economy in Contemporary Capitalism.
February 5 – The Economic Analysis of Politics. Reading: Caporaso and Levine, Chapter 6.
February 7 – NO CLASS – Professor At United Nations.
February 12 – Power and the State…a Political Economy. Reading: Caporaso and Levine, Chapter 7.
FIRST EXAM – Thursday, February 14.
B) Comparative Political Economy. In this section, we look in detail at the different forms of relationship between the state and the economy in contemporary societies. The focus is on the domestic sources and development of distinctive forms of political economy in societies that are nevertheless capitalist in their general features. Here, our focus will be on the US and China. Clearly these are very different states and societies, but their development and relationships will be central to the evolution of capitalism in the coming decades. Along the way, we will encounter additional approaches to the study of contemporary political economy – institutionalism and economic sociology – and begin the discussion of globalization and the global financial crisis.
1. The American Political Economy.
February 19 – Institutional Political Economy and US Capitalism. Reading: Eisner, Chapters 1 and 2.
February 21 – Progressivism and the New Deal Regime. Reading: Eisner, Chapters 3-5.
February 26 – Neoliberalism and the Crisis of Keynesianism. Reading: Eisner, Chapters 6-8.
February 28 – Globalization and the Financial Crisis. Reading: Eisner, Chapters, Chapters 9-11.
SPRING BREAK – March 4-10.
2. The Chinese Political Economy.
March 12 – Economic Sociology and the Chinese Context. Reading: Guthrie, Chapters 1 and 2.
March 14 – Transformation of Chinese Society and Economy. Reading: Guthrie, Chapters 3-4.
March 19 – New Challenges for the Chinese Political Economy. Reading: Guthrie, Chapters 5-6.
March 21 – The Future of Democracy in China. Reading: Guthrie, Chapter 7.
March 26 – China and/in the Global Political Economy. Reading: Guthrie, Chapter 8.
March 28 – No Class (Monday Classes Meet).
SECOND EXAM – Tuesday, April 2.
C) International Political Economy. In this section, we explore the development of global patterns of production, investment, and finance, the ways in which states have both encouraged and tried to control these trends, and the impact of the increasing interlinking of economies and states on the possibilities for democracy in the coming decades. In the past two decades, these trends have been analyzed under the rubric of “globalization.” Despite the limits of this term, our discussion will use this as a starting point. In the end, we will come back to the broad debates on the nature of capitalism, with which we begin the course.
April 4 – Globalization: History and Debates. Reading: Rodrik, Introduction and Chapters 1 and 2.
April 9 – Globalization and the Debate over Trade. Reading: Rodrik, Chapters 3-4.
April 11 – Globalization and the World of Finance. Reading: Rodrik, Chapters 5-6.
April 16 – Globalization and “Development”. Reading: Rodrik, Chapters 7-9.
April 18 – Globalization, Capitalism, and Democracy. Reading: Rodrik, Chapters 10-12.
RESEARCH PAPERS DUE – Thursday, April 18.
PAPER PRESENTATIONS – April 23-May 2.
ASSIGNMENTS:
Your grade for this course will be based on your grades on the following assignments:
1) A short answer/essay exam, which will cover the material on the classic and contemporary theoretical debates over capitalism and politics (section “A” of the syllabus). This exam will be given in class on Thursday, February 14, and your grade on this exam will count for 20% of your total grade in the course.
2) A short answer/essay exam, which will cover the material on the comparative political economy of the US and China (section “B” of the syllabus). This exam will be given in class on Tuesday, April 2, and your grade on this exam will count for 20% of your total grade in the course.
3) A research paper, about 15 pages in length, in which you explore and analyze a contemporary policy-oriented question – i.e. the financial crisis, the fracking controversy, climate change (or other environmental challenges), the future of trade, US-China relationships, etc. – in a way that employs the tools of political economy that we discuss. Your approach can be empirical, normative, or both. I will provide more guidance on these topics early in the semester, and work with you as you develop your paper. Each student will also do a presentation of their paper during the last two weeks of the semester. This paper will be due in class on Thursday, April 18, and your grade in this paper will count for 30% of your total grade in the course.
4) A final exam, which will focus on the issue of globalization in light of the rest of the material in the course. As such, it will be a cumulative exam, asking you to use both the material on globalization and the earlier material on political economy. This exam will be given on Monday, May 6 at 3:00-5:30 pm, and your grade on this exam will count for 30% of your total grade in the course.
NOTE: I have not included a specific percentage for participation in your final grade. This will be a relatively small class, however, and regular participation will be required for its success. To some degree, of course, the quality and regularity of your participation will play a role in determining your final grade, especially when it is on the border line. Nonetheless, my hope is that - as serious students dealing with interesting material - the issue of participation will take care of itself.
GRADING SYSTEM:
Each assignment will be graded on a point system, with 100 points being the maximum possible. You will then be given a letter grade that matches the score. I will use the following grading scale on each assignment:
A = 100-93 D- = 62-60 A- = 92-90 F = 59 and below B+ = 89-87 B = 86-83 B- = 82-80 C+ = 79-77 C = 76-73 C- = 72-70 D+ = 69-67 D = 66-63
In figuring your final grade, I will average and weight the numerical totals, and assign the appropriate letter grade.
HOW TO FIND ME:
302 Patterson Hall 724-946-7304 [email protected]
Office Hours:
W – 10:30 am – 3:00 pm
NOTE: I will often be on campus on Monday and/or Friday, so can be available at other times for meetings. (I have a full day of teaching on Tuesdays and Thursdays…I may have time available over lunch on Thursdays…just ask.) Also, I will often be at Faculty Forum over lunch on Wednesdays…just ask if you need to meet.
Political Science 342 Spring, 2005 Dr. Cohen
FIRST EXAM
You have the whole hour in which to complete this exam. Write a short essay in response to four (4) of the following six questions. (Each answer will count for 25 points of a total of 100 points on the exam.) Try to be as clear, precise, and direct in your answers. (Do not worry if there is some overlap between your answers.) If you have any questions, raise your hand.
1) In chapter 1 of their book, Caporaso and Levine present three conceptions of the meaning of “economics” as a subject of study. What are these three conceptions, and what are the major differences between them?
2) The classical political economists viewed “civil society” and the market economy as a fundamental change from a world in which “material provisioning” was focused on the “household” economy. According to the Classical vision, what are the main features of the market economy?
3) For Karl Marx, they key to understanding the capitalist system/market economy was to figure out how “surplus value” – and thus profit for the owners of property – was created, and why this is a form of exploitation. According to Marx, where does profit come from, why is it a form of exploitation, and what parallels exist between this analysis and the approach of Classical political economy to income distribution?
4) The Neoclassical political economists share the Classicals preference for a free market economy, but analyze economic life very differently. According to the Neoclassical vision, what is economics about?
5) Neoclassical political economists prefer a limited role for the state, but do admit the need for some state action in a market economy. What is “market failure,” and what are the possible roles for the state that follow from this analysis?
6) From the 1940’s until the mid-1970’s, Keynesian political economy dominated economic policy making in the U.S. and U.K. What is distinctive about the Keynesian view of the market economy, and how does it differ from the “free market” or “laissez-faire” approach to the role of government?
Political Science 342 Spring, 2005 Dr. Cohen
RESEARCH PAPER GUIDE
As I have already discussed, your research paper for this course should analyze and evaluate one aspect of the movement against “globalization”. This movement, which emerged during the 1990’s, has many different dimensions, and this allows for much flexibility in your paper. It involved social movements in both the developed and developing world, key events or conflicts of national (i.e. the controversy over NAFTA in the U.S.) or global (i.e. the Seattle WTO protests in 1999, the Chiapas rebellion in Mexico, the connection – if any – between globalization and terrorism, etc.) significance, books and campaigns that criticize globalization in general or specific aspects of globalization (i.e. the role of the WTO, its impact on the environment, its relationship to poverty and inequality, the TRIPS agreement on intellectual property rights, etc.), and attempts to defend globalization from its critics, politically and intellectually.
What this means is that you have a great deal of choice in developing your topic. There are two general limits on the topic you choose. First, and procedurally, it has to be approved by me. Second, and substantively, your paper must put the specific topic you choose in the context of the general discussion of the implications of globalization for our understanding of political economy, and ultimately to (some of) the basic issues of political economy that we have discussed over the semester. It is up to you to come up with some idea, no matter how general it is. Once you have, I will be glad to help you refine and develop the topic.
As for the logistics of the assignment. The paper should be about 15 pages in length (typed and double-spaced), and is due in class on Monday, April 25. During the final week or two of the semester, each student will give a presentation of the paper to the class as a whole. This will involve a 2 page summary to be distributed to the class (including a list of the key questions explored in the paper) and a 10-15 minute presentation of the main findings and arguments in the paper. More immediately, each student will submit an initial overview of the paper in class on Wednesday, March 30. This will involve a two paragraph statement of the topic and approach of your paper, a tentative outline, and an annotated bibliography with a minimum of ten (10) sources. You will be able to modify the topic and outline as you go, but the aim at this point is to get a basic picture of each student’s project. This will help me provide advice and suggestions for each project.
Political Science 342 Spring, 2003 Dr. Cohen
FIRST ESSAY ASSIGNMENT
Your first paper for this course should be 8-10 pages in length, typed and double-spaced, and is due in class on Monday, March 24. The assignment is to analyze a current economic policy controversy in light of contemporary arguments concerning the strengths and weaknesses of the market economy. In other words, you will need to consider the proper balance of the market and the state in the policy or issue area covered by the controversy. This consideration, though, should be put in the context of a detailed discussion of the history of the issue/policy, and of the main arguments shaping the current debate. I assume that most of you will focus on an issue/policy controversy in the United States, but you need not; controversies from other countries or the regional/international arena are acceptable. Your paper should include the following parts/discussions: what is the focus of the controversy, what is the history of it, what are the main arguments/alternatives being offered today, and what would you recommend? In terms of sources, this should be treated as a research paper; be careful to document clearly the sources of your material, and to use these sources to support your final argument.
Here is a set of possible topics for your paper. You are free to choose another, but should get approval from me before you start:
- Were the Bush Administration’s tax cuts of 2001 a good idea, and should we have further cuts in taxation by the federal government?
- Should the Estate Tax be reinstated, and if so at what level?
- Should the U.S. government have prosecuted Microsoft for anti-trust violations, and what should be done to the company?
- What have been the positive and negative effects of the North American Free Trade Agreement (NAFTA)? Should we enter a free trade agreement for the whole hemisphere?
- Can the state prevent corporate collapses such as Enron and WorldCom, and should it? What legal changes are necessary to prevent such collapses in the future?
- Has deregulation been a success in the airline/telecommunications/Internet industry(ies)??
- Should our system for providing a steady income for the retired, currently known as Social Security, be privatized?
- Once again, the federal government is running substantial annual budget deficits. Is this a problem?
- Why has the Japanese economy been unable to find a way out of recession for a whole decade?
- Are free markets and free trade enough to enable developing countries to improve the living standards of their citizens? If the state has a role to play, what is it? (You can focus on one country if you choose this topic.)
- What explains the growth of income inequality in the United States since the 1970’s?
- What is the World Trade Organization (WTO), and does it pose a threat to democratic government in its member states?
Political Science 342 Spring, 2003 Dr. Cohen
FIRST EXAM
Your assignment on this exam is to write an answer to four (4) of the following questions. Try to be as precise and detailed as possible, and to write clearly. Each answer is worth a potential total of 25 points, and you should take about 15 minutes for each one. [If you feel more adventurous, you may try the essay on the next page.] If you have any questions, please raise your hand.
1) According to Robert Heilbroner, what were the main aspects of the “economic revolution,” and how did it change the way people thought about social life?
2) What are the main arguments in Malthus’ theory of population, and how did this theory shape David Ricardo’s view of the future of capitalism?
3) Adam Smith’s “vision” of the market economy still shapes the way we think about it today. According to Smith, what are the main features of the market economy and how are they connected with each other?
4) What were the main common themes among the 19th century Socialist critics of Capitalism? (Be sure to point to some examples of how specific writers presented one or more of the themes.)
5) In Thorstein Veblen’s view, capitalist civilization was still deeply shaped and distorted by the impact of “savagery.” How was his analysis of capitalism shaped by this conviction?
6) According to Karl Marx, why was capitalism doomed to self-destruction?
7) John Maynard Keynes argued that a capitalist economy left to itself could get stuck in a permanent depression, but appropriate government action could ensure growth and stability in capitalism. What was his explanation of the causes of depressions and how is this connected to his view of the role of government?
8) Throughout his book, Heilbroner emphasizes the contributions of “underworld” or “heterodox” political economists – such as Malthus, George, Hobson, and Veblen – in helping us understand capitalism. What are some of the main contributions of these thinkers, why did “orthodox” economics fail to grasp the importance of their work, and what show at least one example of their impact on economic thought in the 20th century?
OR: Write one essay in response to the following question, drawing upon all the material we have discussed:
What are the main features of Capitalism, what are its strengths and weaknesses as an economic and social system, and what are its contributions and challenges to democracy??
Political Science 342 Spring, 2003 Dr. Cohen
SECOND ESSAY ASSIGNMENT
Your second essay for this course is due on Monday, April 28. It should be about 8-10 pages long, typed and double-spaced, and your assignment is to present a critical review and analysis an important contemporary book on political economy. (Although not an absolute requirement, I am particularly thinking about books that have something to do with globalization.) In this essay, you want to be sure to present the major arguments of the book, show how the author tries to support these arguments, evaluate the strengths and weaknesses of the analysis/arguments, and show how the material in the book is related to the themes and readings in class. Overall, the essay should use the analysis of the book as a basis for a discussion of one or more major contemporary problems in political economic life.
Here is a list of some especially relevant books. If you find another book you would prefer to write about, just check it with me.
John Micklethwait and Adrian Wooldridge, A Future Perfect: The Challenge and Hidden Promise of Globalization. (New York: Crown Business/Random House, 2000). A thoughful and generally positive analysis of globalization.
Daniel Yergin and Joseph Stanislaw, Commanding Heights: The Battle for the World Economy. (New York: Simon and Schuster, 1998/2002 updated). Comprehensive account of the victory of market economics and globalization since the 1970’s.
Thomas Friedman, The Lexus and the Olive Tree: Understanding Globalization. (New York: Anchor Books, 2000). Very influential defense of globalization by the famous (in his own mind especially) New York Times columnist.
Joseph E. Stiglitz, Globalization and Its Discontents. (New York: W.W. Norton, 2002). Balanced, sometimes critical, evaluation of globalization by the former chief economist at the World Bank.
Noreena Hertz, Silent Takeover: Global Capitalism and the Death of Democracy. (New York: Simon and Schuster, 2002). Well, the title gives it away! The author is an economist at Cambridge University, and the book has been very influential in Europe.
Manfred B. Steger, Globalism: The New Market Ideology. (Lanham, MD: Rowman and Littlefield, Inc. 2002). Short and pithy critique of the ideology behind globalization.
Anthony Giddens, Runaway World: How Globalization is Reshaping Our Lives. (London, UK: Routledge, 2000). A short and stimulating analysis of the various dimensions of globalization, by a British sociologist and important advisor to Prime Minister Tony Blair.
Anthony Giddens, The Third Way and Its Critics. (London, UK: Blackwell Publishers, 2000). Defense of reformist policies of Tony Blair’s “New Labour” and Bill Clinton’s “New Democrats,” as best way to deal with consequesnces of globalization.
Ethan Kapstein, Sharing the Wealth: Workers and the World Economy. (New York: W.W. Norton, 1999/2002). Argues that globalization, while providing many benefits, has made life more difficult and insecure for many if not most working people in the world, and that we need to do something to reverse this trend.
Dani Rodrik, Has Globalization Gone Too Far? (Washington, DC: Institute for International Economics, 1997). A distinguished economist and advocate of free trade says yes, globalization may have gone too far, too fast, creating growing levels of inequality around the world.
Political Science 342 Spring, 2003 Dr. Cohen
FINAL EXAM
You have the whole period for this exam. Your assignment is to write an answer in response to four (4) of the questions in section A, and to write essays in response to the questions in sections B and C (choose one of the two questions in section C). Be sure to take care to write clearly and precisely, and to organize your responses effectively. You may find some overlap between your answers to the different questions; this is fine. If you have any questions, please raise your hand.
A) Short Answer: (5 point each; 20 points total) Write a short response to four (4) of the following questions:
1) According to Milton Friedman, why is capitalism necessary for political freedom?
2) In Charles Lindblom’s view, what is the significance of the “quid pro quo” rule in a market system?
3) According to Charles Lindblom, what are the strengths of the market as a system of social coordination?
4) According to Jeffrey Cohen, what is the difference between a “laissez-faire” and an “anti- trust” policy regime?
5) What are the main causes behind the declining power of unions in the United States?
6) Explain the difference between a “progressive” and a “regressive” tax, and provide an example of each.
7) What is monetarism, and what role has this theory played in the past 20 years?
8) According to Scholte, why is “de-territorialization” the best definition of globalization?
B) Essay: (40 points) Write an essay in response to the following question:
A common theme in the readings for this course has been the issue of the power of corporations in capitalist societies. While some writers suggest that capitalism is necessary for democracy, others worry that corporations become too powerful in capitalist societies, limiting the ability of citizens to exercise political power for themselves. Drawing on the course readings, write an essay in which you address the following questions: What are the sources of the political power of corporations in a capitalist society, why has this power increased over the past three decades in the United States, and do corporations have too much political power in the U.S. today?
C) Essay: (40 points) Write an essay in response to one (1) of the following questions:
1) Capitalism is an economic system that relies upon inequality of rewards to generate wealth and efficiency. This has always made it worrisome in the eyes of critics who fear that it generates too much inequality, threatening our ability to achieve a just and cohesive society. After decades in which governments have tried to limit the degree of inequality, however, inequality has been on the rise in capitalist societies (especially the United States) since the 1970’s. Drawing on the course readings, write an essay in which you address the following questions: What is the connection between capitalism and inequality, what are some of the causes of the rise of income inequality in the United States since the 1970’s, what has been the impact of globalization on inequality, and is there now too much inequality of income and wealth in the United States?
2) After decades of Keynesianism, the welfare state, and social democracy, the role of governments in the western capitalist democracies of Europe and North America have shifted drastically. Since the late 1970’s, more and more governments have pursued policies that emphasize the loosening of controls on the market system, domestically and internationally, and have tolerated growing levels of inequality and insecurity that result from these policies. In a word, we have seen a victory for “neo-liberalism” in most of these countries. Drawing on the course readings, and focusing on the experience of the United States, write an essay in which you address the following questions: What explains the revival of neo-liberal ideas since the 1970’s, how have these ideas been reflected in policy changes/changes in the role of government in the economy, what is the connection between neo-liberalism and globalization, and has the revival of neo-liberalism been on balance a good or bad thing?