Introduction to Political Economy
Instructor: Dr. Anthony Gadzey Office: 7010 HC
Time : MWF 12:50-1:50 Office Hours: MWF 8:30-9:30 AM.
Place: Thach 112 And By Appointment
CONTENT
Political Economy is the scientific study of the system of resource allocation which relies on the dual logic of politics and economics. Resource allocation describes why and how scarce goods and services change hands from one producer or consumer to another. While its broad theory is the same for all countries, how this theory is applied varies from one country to another. Therefore, while we will draw our examples and illustrations from the U.S. political economy, we will refer to all political economies in explaining its basic theory.
GRADING
Attendance 10%
Class Puzzles 15%
One Mid-term exam 35%
Final Exam 40%
THE CARDINAL RULES FOR THIS COURSE
1. Attendance is required. It is the responsibility of the student to make sure to sign the attendance list before leaving class every day. A student is penalized 1% for each absence without university excuse or departure prior to the end of class. Students with perfect attendance scores at the end of the course receive a bonus point of 1%, bringing their total attendance score to 11% of total grade.
2. Mid-term exam will be given in the next class following the completion of the necessary segment of the course as indicated in the syllabus. Exams will be announced at least a week ahead of time.
3. Students with official university excuses, including student athletes, should contact the instructor and make arrangements to have their absences removed from the records and to take make-up exams but not later than a week after the said event.
4. Special assistance is available for students who are physically challenged in terms of classroom sitting, extra office tutorials, and special arrangements for taking exams.
1. What is Political Economy? 12 classes
We start by addressing the fundamental questions raised by the theory of political economy. Political economy refers to that part of the allocative system where the methods and concerns of politics must be combined with the methods and concerns of economics in order to ensure the efficacious allocation of all of society's scarce resources. Resource allocation is the careful (calculated) assigning of scarce resources to the economic functions of society: production, distribution, consumption, and prestige and wealth accumulation. The need to combine the two systems of politics (also, state, government) and economics (also, market exchange or market system) is based on the assumption that certain areas of allocation can only be efficacious if the values pertinent to these two systems are taken into consideration in arriving at decisions. Students should find answers to the following questions: What does the allocation of resources mean? Why is it necessary to allocate resources? How is political economy different from politics and economics? And how many models of political economy are known and used around the world?
Required Reading:
Gadzey Chapter 1; Introduction
Mid-term Exam
2. US Industrial Policy: The newest phase of US political economy.
Chapter Thirteen presents a quick overview of U.S. industrial policy highlighted where appropriate with comparisons with other industrial country policies and measures to aid the private sector. The extensiveness of government subsidies to all segments of the U.S. private sector economy including farmers, the S&Ls and other financial institutions in trouble, the railroads, as well as government sponsorship of competitive new technologies extends far beyond our common notions of a free enterprise system. But extensive as U.S. subsidization of the private sector is, it compares poorly with European Union member countries' practices. But industrial policy and its extensiveness point again to the expanding scope of state and private market cooperation to ensure a more competitive American economy within the global market place.
Required Reading:
Gadzey Chapter 13