Z: **Archived**: Political Economy 101

Political Economy 101: Schedule and Readings

Political Economy 101: "Modern" Political Economy

http://delong.typepad.com/pe101/

J. Bradford DeLong, 601 Evans, 925-708-0467, delong@econ.berkeley.edu, office hours T 12:30-2:30 and by appointment.

TTh 11-12:30 Hearst Annex A1

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August 28: Overview of the Course

Readings: "Notes: Political Economy at Berkeley Overview" Lecture Audio File (large).

Assignments: Web assignment 0: introductions due by noon on August 29

August 30 and September 4: The World in 1900: Colonization, Democratization, Marketization, Industrialization"

Readings:

• "Notes: The World in 1900" http://delong.typepad.com/pe101/2007/09/political-econo.html. Lecture Audio File.
• John Hobson, "Imperialism" http://www.econlib.org/library/YPDBooks/Hobson/hbsnImptoc.html.
• Joseph Schumpeter, "Imperialism" http://www.mises.org/books/imperialism.pdf.
• George Orwell, "Shooting an Elephant" http://gutenberg.net.au/ebooks02/0200141.txt.
• Friedrich Hayek, “The Use of Knowledge in Society” http://www.econlib.org/library/Essays/hykKnw1.html.
• Karl Marx and Friedrich Engels, "Manifesto of the Communist Party" http://www.marxists.org/archive/marx/works/1848/communist-manifesto/index.htm.

Assignments: Web assignment 1: Hobson vs. Schumpeter due by 5 PM on September 7

September 6: NO CLASS

September 11 and 13: World War I

Readings:

• "Notes: The Strange Death of the Classical Liberal World.". Part I Lecture Audio File (large) Streaming Audio. Part II Lecture Audio File (large)
• Norman Angell, "Peace Theories and the Balkan War" http://www.gutenberg.org/files/11895/11895-8.txt.
• John Maynard Keynes, "The Economic Consequences of the Peace" http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/keynes/peace

Assignments: Web assignment 2: why was Norman Angell wrong? due by 5 PM on September 13

September 18 and 20: The Interwar Crisis

Readings:

• "Notes: Failing to Rebuild the Classical Liberal World": Downloadable large audio file. Streaming large audio file. September 20 streaming audio. September 20 downloadable audio.
• John Maynard Keynes, The End of Laissez-Faire http://www.panarchy.org/keynes/laissezfaire.1926.html.
• John Maynard Keynes, Essays in Persuasion (New York: W.W. Norton: 0393001903).
• Barry Eichengreen, “Hegemonic Stability Theories of the International Monetary System” http://www.nber.org/papers/W2193

Alternative Keynes Readings

*Assignments: Web assignment 3: John Maynard Keynes's mission due by 5 PM on September 18

September 25 and 27: Trapped between Hitler, Stalin, Mao, and Tojo

Readings:

• "Notes: World War II."
• George Orwell, "The Road to Wigan Pier" http://gutenberg.net.au/ebooks02/0200391.txt.
• John Maynard Keynes, "Trotsky on England" http://www.marxists.org/history/etol/document/comments/keynes01.htm

Assignments: Web assignment 4: George Orwell's dilemmas: Peacock students. Chaubey students. Durham students. Due by 5 PM on September 25

Optional reading: George Orwell, "Homage to Catalonia" http://gutenberg.net.au/ebooks02/0201111.txt.

October 2 and 4: The Post-WWII Order: Social Democracy and Bretton Woods

Readings:

• "Notes: Building Social Democracy."
• Karl Polanyi, The Great Transformation (Boston: Beacon Press: 080705643X), chapters 1-6, 18-21.
• Roosevelt’s Inaugural Address, 1933 http://www.yale.edu/lawweb/avalon/presiden/inaug/froos1.htm.

Assignments: Web assignment 5: Polanyi's well-governed market: Peacock students. Chaubey students. Durham students. Due by 5 PM on October 2

Optional reading: Bradford DeLong and Barry Eichengreen, "The Marshall Plan" http://econ161.berkeley.edu/pdf_files/Marshall_Large.pdf

October 2 Audio October 4 Audio

October 9 and 11: Really Existing Socialisms; Really Existing Nationalisms

Readings:

• "Notes: Socialisms and Nationalisms."
• Benedict Anderson, Imagined Communities (London: Verso: 1844670864), chapters 1-3, 6, 9, 11.
• Milovan Djilas, The New Class (New York: Harvest/HBJ: 015665489X)
• Karl Marx, "Wage Labour and Capital" http://www.marxists.org/archive/marx/works/1847/wage-labour/index.htm.

Assignments: Web assignment 6: Anderson or Djilas due by 5 PM on October 9

October 16 and 18: Politics, Markets, and Bureaucracies

Readings:

• "Notes: Thirty Glorious Years and Twenty Not So Great Ones."
• Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press: 0226264211).
• Ronald Coase, “The Problem of Social Cost” http://www.sfu.ca/~allen/CoaseJLE1960.pdf

Assignments: Web assignment 7: Friedman's challenge: Peacock Students; Chaubey Students; Durham Students. Due by 5 PM on October 16. First 1000-word paper: what is surprising about the twentieth century? due on October 19.

October 23 and 25: Late Development: Failures

Readings:

• "Notes: Difficulties of Late Industrialization." Audio
• James Scott, Seeing Like a State (New Haven: Yale University Press: 0300078153), chapters 1, 3, 5-8, 10.
• Kevin Murphy, Andrei Shleifer, and Robert Vishny, "Why Is Rent-Seeking so Costly for Growth?" http://links.jstor.org/sici?sici=0002-8282%28199305%2983%3A2%3C409%3AWIRSCT%3E2.0.CO%3B2-G

Assignments: Web assignment 8: government failures due by 5 PM on October 23

October 30 and November 1: Late Development: Successes

Readings:

• "Notes: East Asia Stands Up."
• James Fallows, "How the World Works" http://www.theatlantic.com/doc/print/199312/fallows-world
• Paul Krugman, “The Myth of Asia’s Miracle” http://web.mit.edu/krugman/www/myth.html

Assignments: Web assignment 9: guided development successes due by 5 PM on October 30

Lectures: http://www.j-bradford-delong.net/2007_audio/20071030_101_Fallows.mp3 http://j-bradford-delong.net/2007_audio/20071101_111154.mp3

November 6 and 8: The Crisis of Social Democracy?

Readings:

• "Notes: Does Social Democracy Have a Neoliberal Future?"
• Stephen Holmes, “The Liberal Idea” http://www.prospect.org/cs/articles?article=the_liberal_idea.
• Robert Reich, The Work of Nations (New York: Vintage: 0679736158)

Assignments: Web assignment 10: Robert Reich's domestic neoliberalism due by 5 PM on November 6

Lectures: <http://j-bradford-delong.net/2007_audio/20071106_121406.mp3 | http://j-bradford-delong.net/2007_audio/20071108_121455.mp3

November 13 and 15: Does History Have an End?

Readings:

• "Notes: Is There a Washington Consensus?"
• Jessica Stern, Terror in the Name of God (New York: Harper: 0060505338), chapters 1-5, 10
• Benjamin Barber, “Jihad vs. McWorld” http://www.theatlantic.com/doc/199203/barber.
• Francis Fukuyama, “The End of History?” http://www.wesjones.com/eoh.htm.
• Bradford DeLong, Christopher DeLong, and Sherman Robinson, "The Case for Mexico's Rescue" http://econ161.berkeley.edu/Econ_Articles/themexicanpesocrisis.html.
• Fareed Zakaria, “The Rise of Illiberal Democracy” http://www.fareedzakaria.com/ARTICLES/other/democracy.html

Assignments: Web assignment 11: is Francis Fukuyama an idiot? due by 5 PM on November 13

Lecture: http://www.j-bradford-delong.net/2007_audio/20071115_112044.mp3

November 20: NO CLASS

Assignments: Web assignment 12: Taliban studies due by 5 PM on November 20

November 27 and 29: Challenging International Neoliberalism

Readings:

• "Notes: The Second Great Era of Globalization."
• Joseph Stiglitz, "Toward a New Model of Development" http://www2.gsb.columbia.edu/faculty/jstiglitz/download/ChinaNewModel.pdf
• Joseph Stiglitz, "Achieving More Equitable Globalization" http://www2.gsb.columbia.edu/faculty/jstiglitz/download/2005_Carter_Center.pdf
• Joseph Stiglitz, "The 50th Anniversary of the Treaty of Rome" http://www2.gsb.columbia.edu/faculty/jstiglitz/download/EU_50th_Anniversary.pdf
• Dani Rodrik, “After Neoliberalism, What?” http://ksghome.harvard.edu/~drodrik/After%20Neoliberalism.pdf.
• Harry Kreisler, "Power and Culture in International Affairs: Conversation with Josef Joffe" http://globetrotter.berkeley.edu/people/Joffe/joffe-con0.html.
• Bradford DeLong and Barry Eichengreen, "Between Meltdown and Moral Hazard" http://www.j-bradford-delong.net/Econ_Articles/CIEP/CIEP_revision06102001.PDF

Assignments: Web assignment 13: Joe Stiglitz's international anti-neoliberalism due by 5 PM on November 27

December 4: FEEDBACK: WHAT WORKED AND WHAT DIDN'T

Assignment: Second 1000-word paper: using what you have learned in your concentration due 5 PM December 4

December 6: REVIEW: MODERN POLITICAL ECONOMY

Assignments: Web assignment 14: improvement due by 5 PM on December 11

Saturday December 15: 5-8 PM: FINAL EXAM 2060 VLSB

Web Assignment 8: Government Failures: Peacock Students

James Scott's Seeing Like a State is, I think, both the most interesting and also the most intellectually honest book on this semester's reading list. Scott is by instinct and orientation left of center, a believer in collective purposes and destinies, in collective action, in moral solidarity, and in the limitations of the market as a mode of social organization. But he looks at the world, and thinks hard about it, and in the end comes up with a position on the role of governments that Milton Friedman would not find much to disagree with.

What do you think of Scott's litany of government's inversions of the role of Mephistopheles--that it is an organization that always seeks to do good, and winds up always doing evil?

Write a comment of at least 200 words on Scott's argument. Contribute to the discussion that is ongoing--that is, react and respond to not just James Scott but, to the extent it is appropriate, the earlier posters and commenters on the webpage.

Web Assignment 8: Government Failures: Chaubey Students

James Scott's Seeing Like a State is, I think, both the most interesting and also the most intellectually honest book on this semester's reading list. Scott is by instinct and orientation left of center, a believer in collective purposes and destinies, in collective action, in moral solidarity, and in the limitations of the market as a mode of social organization. But he looks at the world, and thinks hard about it, and in the end comes up with a position on the role of governments that Milton Friedman would not find much to disagree with.

What do you think of Scott's litany of government's inversions of the role of Mephistopheles--that it is an organization that always seeks to do good, and winds up always doing evil?

Write a comment of at least 200 words on Scott's argument. Contribute to the discussion that is ongoing--that is, react and respond to not just James Scott but, to the extent it is appropriate, the earlier posters and commenters on the webpage.

Web Assignment 8: Government Failures: Durham Students

James Scott's Seeing Like a State is, I think, both the most interesting and also the most intellectually honest book on this semester's reading list. Scott is by instinct and orientation left of center, a believer in collective purposes and destinies, in collective action, in moral solidarity, and in the limitations of the market as a mode of social organization. But he looks at the world, and thinks hard about it, and in the end comes up with a position on the role of governments that Milton Friedman would not find much to disagree with.

What do you think of Scott's litany of government's inversions of the role of Mephistopheles--that it is an organization that always seeks to do good, and winds up always doing evil?

Write a comment of at least 200 words on Scott's argument. Contribute to the discussion that is ongoing--that is, react and respond to not just James Scott but, to the extent it is appropriate, the earlier posters and commenters on the webpage.

Practice Final Exam for Modern Political Economy, PE 101, Fall 2007

I have never taught this course before here at Berkeley http://delong.typepad.com/pe101/2007/10/political-econo.html.

It seems only fair to give the students some idea of what is coming on Saturday December 15: 5-8 PM. For what they are about to receive, may the Lord of the Stars make them truly thankful:

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PE 101: Modern Political Economy: Fall 2007: Mock Final Exam

Part 1--Short Answers (1 to 2 paragraphs); do all (50%) of exam:

1. What facts about the way the world appeared to be working before 1914 made it reasonable for Norman Angell to hope that full-scale wear between great powers was a thing of the past?

2. Why does George Orwell refuse to be either a classical liberal defender of the British status quo, a traditional conservative, a communist, or a fascist?

3. Given his historical situation in Britain between the world wars, does it seem to you reasonable or unreasonable that John Maynard Keynes hoped that clever governmental management by smart people would make classical liberal dreams true in practice even though they were not true in theory?

4. Why does Milton Friedman reject the dominant Polanyian social-democratic consensus of his time--that the logic and working of the market needed to be curbed by an active, powerful, energetic government aggressively regulating in the public interest?

5. What regions of the world have seen notable economic development successes in the years since WWII? What regions have seen notable economic development failures?

6. To what extent are modern neoliberals the intellectual children of Norman Angell, John Maynard Keynes, Karl Polanyi, and/or Milton Friedman?

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Part 2--Essays; do 2 (50%) of exam:

1. Looking forward to the twenty-first century, who do you think is likely to win the intellectual cage match between Angell, Schumpeter, Hobson, and Stern? Whose analysis of the roots and functions of cross-border violence and domination is likely to be closest to being true?

2. In what ways are Milton Friedman and James Scott BFFs? In what ways are they eternal enemies?

3. What are the most notable differences between Keynes's and Polanyi's analyses of the problems of Europe between the world wars?

4. What, in your view, should the grand international relations strategy of the United States be in the twenty-first century? What should it do--in economics and in politics? What changes should it try to bring about in other countries, and what tools should it use to try to bring them about?

Additional Optional Reading: David Pryce-Jones: Remembering Milovan Djilas

From the New Criterion:

Egregious Moderation: David Pryce-Jones: Remembering Milovan Djilas: In the spring of 1967, I took a train from Ceausescu’s Romania to Tito’s Yugoslavia. Travel in Communist countries switched the imagination into overdrive. The books of Walter Krivitsky, Anton Ciliga, Victor Serge, George Orwell came menacingly alive. To ring someone up and propose a meeting was to do that person no service. Each encounter brought with it shades of the prison house. In Romania, I had met a former political prisoner, one of thousands sent to cut reeds in the Danube delta up to their necks in water in all seasons. In Yugoslavia, the people I knew were nationalists, whether Serb, Croat, or Slovene. They led me to the window to point out the secret policemen on watch in the streets below. They also spoke with awe of the foremost dissident in the world, Milovan Djilas...

Karl Polanyi: Political Economy 101 (Audio)

Karl Polanyi: Political Economy 101 (Audio): Modern Political Economy Lecture for October 2, 2007:

Market, political, sociological, and moral: four sources of order and four sources of power. To try to subordinate everything to the market, says Karl Polanyi, invites not just trouble but catastrophe.

http://j-bradford-delong.net/2007_audio/101_10_02_07.mp3

Post-WWII Europe in the Argentine Mirror (Audio)

Post-WWII Europe in the Argentine Mirror (Audio): Modern Political Economy Lecture for October 4, 2007:

For three decades--1914-1945--everything went wrong in Europe. Then, from 1945-1973, everything went right in Western Europe. Why? Perhaps there are clues in viewing Europe in the Argentine mirror...

http://j-bradford-delong.net/2007_audio/101_10_4_07.mp3