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Home , Ancient economic thought

University of Southern Indiana Romain College of Business Department of and Marketing

ECON461: History of Economic Thought Fall 2018

Instructor: Timothy J. Schibik, Ph. D. Office: BE1019 (inside the main COB offices – BE1015) Office Hours: By appointment. Office Phone: (812) 464-1979 (Mary Spahn in the Main Office) e-mail: [email protected]

Course Prerequisite: Econ208 and Econ209

Note: This course counts as an economics elective for economics majors/minors and as a 300/400 level elective for all other majors at the university.

Text: Heilbroner, Robert L., The Worldly Philosophers: The Lives, Times, and Ideas of the Great Thinkers, 7th Edition Newly Revised, Touchstone – Simon Shuster Pub. Co., 1999.

Course Objective:

The overall objective of this course is to introduce the origins and evolution of economic theory from its formative stages to the present. The focus will be on developing the interrelationships between the historical environment and development of economic theory to be used in understanding existing social realities.

Upon completion of this course, student should be able to:

 recognize the various schools of economic thought, along with their origins and evolution;  summarize the main characteristics of the various schools of economic thought;  describe the technological, ideological and social forces that have influenced these schools of thought;  identify the various economic theories that were/are used to explain and analyze particular choices at various points in time;  distinguish the impacts that the various schools of thought have had on current “mainstream” economics, and;  ask yourselves the important questions (i.e., What do I know?, How do I know?, What do I believe?, and Why do I believe it?) and arrive at defendable answers.

College of Business Skill Development:

This course will help to develop:

Primary – Critical Thinking, Secondary – Written Communications

Econ461 Syllabus Schibik Fall 2018 Class Expectations:

All students are expected to attend all class sessions and to actively participate in class discussions. Participation requires that you attend class, however attendance alone does not constitute “participation.” Participation includes attending class, asking questions, answering questions, engaging in discussions and offering information relevant to the course. Each student must complete all reading assignments before they are discussed in class.

Grading Policy:

Grades are based solely on your class attendance, class participation and in-class presentations.

Potential Points: Grading Scale:

Participation 50 A's 90% - 100% Term Paper 50 B's 80% - 89% Midterm Exams 100 C's 70% - 79% Final Exam 50 D's 60% - 69% 250 F's below 60%

Term Paper:

A research paper of more than ten pages (11 or more pages) is required in this course. The topic must be in economic thought. Here are four options –

1. One option is to write an historical survey of economic theories or philosophies on a particular topic. Topics that you may find interesting would include population growth, environmental protection, determination of (or rent or profits), effects of colonialism, arguments for protectionism, economics of education or health, philosophies of taxation, etc. These are only a few of the possibilities; choose a topic that is interesting to you. In this case, you might begin by exploring whether ancient authors addressed the topic (Bible, Greeks, Romans, etc.), and then you can move forward through time to review its treatment by classical ( and his followers) and modern authors. 2. Another option is to write a review of the economic ideas of some author who is NOT covered extensively in this course. You could, for example survey the writings of Henry Thornton, who played an important role in the development of monetary theory, or you could select one of the prominent Austrian economists: , Ludwig Von Mises, or Friedrich von Hayek. Again, select an author who is interesting to you. In this case, you should read as extensively from primary sources (the author's own works) as possible, rather than relying heavily on secondary sources. 3. Since most of this course is about economic thought in the Western world, you may want to write your paper about economics ideas in some other region. You could, for example, write a paper about the economic ideas that have been influential in East Asia (including, for example, ideas derived from Confucianism) or the Middle East (including, for example, economic concepts in the Koran). 4. If you have an idea for some other kind of project that would apply the material covered in this course, come to my office and talk to me about it.

The research paper is designed to accomplish the following objectives: learning how to conduct focused research on an individual; writing a concise research report; analyzing the implications of an individual’s contributions; and placing those contributions into a larger economic context.

Econ461 Syllabus Schibik Fall 2018 The paper is due Friday, November 16, 2018 (which is the end of week 13 of the semester – the Friday – BEFORE Thanksgiving) . You should begin early. Please share your topic and a plan for the paper by the end of the fourth week of class (by September 14th).

The paper must be typed, double-spaced, 12-point font, have one-inch margins and be at least eleven pages in length. The paper must be in the format of academic work (I recommend you use the APA style manual as a guide).

Here are three rules of thumb I will use to grade your term paper:

1. If your paper could have been written without having taken this course, it will not receive a passing grade. It must not only have economic content, but it MUST BE SPECIFICALLY WRITTEN FOR THIS COURSE ONLY. The paper you produce may be good for another course, but without economics history and a review of some economic theory, it will not be a good paper for this course.

2. It must mostly employ a "sophisticated" bibliography. If a preponderance of your sources can be found on EconLit or JSTOR, they pass the sophistication test. If they are from newspapers, Newsweek, etc.., they do not pass the sophistication test. Check with me if you are not sure, and I will itemize your bibliography. I can tell at a glance.

3. The organizational scheme used in your paper must be transparent. I am tired of "subtle" analysis. Hit me over the head with your points and do not be afraid to use titled subsections, a "roadmap" paragraph at the beginning of the paper, and frequent recap sentences at the beginning and end of subsections. If I cannot (in two minutes) diagram your paper, you are in trouble. I will get bored reading your paper and your grade will suffer.

Attendance and Make-up Policy:

As this is a senior level elective economics course, you are expected to attend all class meetings and to actively participate in each session. As adults, the choice to attend lectures or not rests solely on your shoulders and so do the consequences.

Academic Honesty:

Academic dishonesty in this class including plagiarism, cheating, submitting another person’s material as one’s own, or doing work for which another person will receive credit will subject a student to disciplinary action as outlined in the Student Rights and Responsibilities: A Code of Student Behavior. If you are found guilty of academic dishonesty in this class, you will receive a grade of “F” for this course and you may be dismissed from your degree program and possibly from USI.

Disability Support Services:

If you are a USI student with a disability for which you may receive academic accommodations for this class, please register with the Disability Resources (DR) as soon as possible. Students who have or who receive an accommodation letter from DR are encouraged to meet privately with me to discuss the provisions of those accommodations as early in the semester as possible. To qualify for accommodation assistance, students must first register to use the disability resources in ODR, Science Center Rm. 2206, 812/464-1961 (http://www.usi.edu/disabilities). To help ensure that accommodations will be available when needed, you are encouraged to meet with me at least 7 days prior to the actual need for the accommodation.

Econ461 Syllabus Schibik Fall 2018

Title IX – Sexual Misconduct

USI does not tolerate acts of sexual misconduct, including sexual harassment and all forms of sexual violence. If you have experienced sexual misconduct, or know someone who has, the University can help. It is important to know that federal regulations and University policy require faculty to promptly report incidences of potential sexual misconduct known to them to the Title IX Coordinator to ensure that appropriate measures are taken and resources are made available. The University will work with you to protect your privacy by sharing information with only those who need to know to ensure we can respond and assist. If you are seeking help and would like to speak to someone confidentially, you can make an appointment with a counselor in the University Counseling Center. Find more information about sexual violence, including campus and community resources at www.usi.edu/stopsexualassault.

Special Cell Phone Request/Rule:

Cell phones have become a major convenience good in our society. However, these instruments of unbridled communication can also present a major distraction to both the user and to those in close proximity. With this is mind; I respectfully require that all cell phones and computers be turned off when you enter this classroom. I will abide by this rule and I ask that you do so as well.

PLEASE – DO NOT SIT IN CLASS AND TEXT -- IT IS DISRESPECTFUL --

If you have a special situation that requires that you have access to your cell phone during a specific class time, please notify me prior to that class and place your phone in manner mode.

Course Outline: NOTE: Readings may be added or subtracted in class. Also, chapters are references to Heilbroner text.

Intro – Ancient Economic Thought (e.g., to Biblical Times)

EH. encyclopedia entry on the ancient Greek Read introduction, sources of evidence, the debate about ancient Greece, and the Findley model and its aftermath. (http://eh.net/encyclopedia/the-economy-of-ancient-greece/)

Intro – The Scholastics – St. Thomas Aquinas, Summa Theological, Part II – II, Treatise on Prudence and Justice, Question 77 – by sins committed in buying and selling, Four Questions: http://dhspriory.org/thomas/summa/SS/SS077.html - SSQ77OUTP1

Chapter 1 The Introduction

Different view of the economic world -- Karl Polanyi, The Great Transformation, (1944) Summary – http://weapedagogy.wordpress.com/2013/08/28/summary-of-the-great- transformation-by-polanyi/

Chapter 2 The Economic Revolution

Thomas Mun, Englands Treasure by Forraign ,(1664)..

William Petty, Political Arithmetick, (1690).

Econ461 Syllabus Schibik Fall 2018

John Locke, "Sauntering" from his Some Thoughts Concerning Education (1693),.

Chapter 3 The Wonderful World of Adam Smith

Francois Quesnay, An Explanation of the "Tableau Economique" , (1758).

Adam Smith, Inquiry into the Nature and Causes of the Wealth of Nations (1776). Read the introduction and chapter I.

Exam #1

Chapter 4 The Gloomy Presentiments of Parson Malthus and

Jeremy Bentham, Introduction to the Principles of Morals and Legislation (1780) (Especially Chapter 1 on and Chapter 4 on its measure – see links on left edge of page).

Thomas Robert Malthus, Essay on the Principle of Population, (1798)

Thomas Robert Malthus, The Corn , (1814).

Jean-Baptiste Say, Traite d'economie politique, Book I, Chapter XV: Of the Demand or for Products(1803).

David Ricardo, . An Essay on the Influence of a Low of Corn on the Profits of Stock, (1815). . On the Principles of and Taxation(1817),

Chapter 5 The Dreams of the Utopian Socialists

Robert Owen, . Observations on the Effect of the Manufacturing System, (1817). . A New View of Society, or, Essays on the Principle of the Formation of Human Character, and the Application of the Principle to Practice,(1816). . Report to the Committee of the Association for the Relief of the Manufacturing and Labouring Poor, (1817). . Report to the County of Lanark, (1820).

Charles Fourier, selections from The Theory of Four Movements, etc., (1835-51).

Saint Simon, Letters from an Inhabitant of Geneva to his Contemporaries,(1803).

Chapter 6 The Inexorable System of

Karl Marx, . "Estranged Labor" in The Economic and Philosophical Manuscripts, (1844). . The Communist Manifesto (1848), [pdf version].

Chapter 7 The Victorian World and the Underworld of Economics

William Stanley Jevons, . A Brief Account of a General Mathematical Theory of Political Economy , (1866).

Econ461 Syllabus Schibik Fall 2018 . The Theory of Political Economy,(1871), especially Chapter 3 on the Theory of Utility, the section in Chapter 8's "Concluding Remarks" subtitled The Noxious Influence of Authority, Appendix II on Capitalisation.

Alfred Marshall, . The Principles of Economics,(1890). Especially the third chapter [pdf file] in Book III on "Gradations in Consumers' Demand."

J.R.Hicks, and Capital (1939).

Exam #2

Chapter 8 The Savage Society of

Thorstein Veblen, . "The Instinct of Workmanship and the Irksomeness of Labor," American Journal of Sociology, Vol. 4, (1898-99). . Conspicuous Consumption from The Theory of the Leisure Class,(1899).

Chapter 9 The Heresies of

John Maynard Keynes . The Economic Consequences of the Peace, (1919), especially chapters five and seven. . An Open Letter to President Roosevelt, (1933). . The General Theory of Employment, and , (1935-36). . John R. Hicks,"Mr Keynes and the 'Classics': a Suggested Interpretation," Econometrica, April (1937), pp. 147-59.

Professor Brad DeLong’s Keynes page -- http://www.j-bradford- delong.net/economists/keynes.html

Chapter 10 The Contradictions of

Joseph Schumpeter  , Socialism, and , (1943), current relevance?

Chapter 11 The End of the Worldly Philosophy?

Special Topics – May be added by collective choice –  Women in Economics o 13 Women Who Transformed the World of Economics. o Women Economists  The  “The Austrian School of Economics,” by Peter Boettke -- http://econlib.org/library/Enc/AustrianSchoolofEconomics.html  The Behavioral o 15 Top Behavioral Economists

FINAL EXAM – Monday, December 10th 2018 @ 10:00 A.M. in BE3023

Econ461 Syllabus Schibik Fall 2018