American Political Economy ( Topics in Public Policy and Public Administration )

Transcription

1 American Political Economy ( Topics in Public Policy and Public Administration ) Professor Robert Sahr PS 479/579; 4 credits Office: Gilkey Hall 306A Oregon State University Telephone: (541) or (to make an appointment) Winter Quarter 2012 Office Hours: Tu & W 2-3 p.m., and by appointment M and W address: Robert.Sahr@oregonstate.edu; indicate PS 479 on subject line Milam Hall 202 The course will examine five main elements of government-economy relationships: a brief overview of capitalism and types of capitalism around the world, and a very brief discussion of socialism an examination of how governments and the economy have interacted through US history, especially in recent decades an overview of types of government regulatory policy an analysis of the recent Great Recession and government approaches to dealing with those economic problems examination of major categories of national government spending, tentatively with special focus on Social Security taxes and other revenue sources of government finance, including examination of presidential candidate proposals I will conduct the course somewhat as a seminar, with frequent writing and oral student presentations of the readings. That is, students rather than the instructor will conduct part of most class sessions. No exams are required. Instead, requirements are four Response Papers (RPs) and a research project, which will involve both oral and written presentation. Graduate students (PS 579) read and analyze an additional book on a politicaleconomic topic and a selected journal article for each RP. The course satisfies the Political Science writing-intensive (WIC) requirement, but is open to students from all majors, both graduate students and undergraduates. The course assumes, but does not require, that students have taken PS 201 and an upper-division course in American politics or public policy. I do not assume any previous economics coursework. Course Goals: The course seeks to help students develop Basic understanding of core concepts, issues, and alternatives about governments and the economy, especially in relation to taxing, spending, and regulation, mainly at the national level in the United States Awareness of the role of interests, ideas, information, uncertainties, and other factors in oneself and others in relation to proposing and evaluating public policy Increased ability to deal with political information, especially concerning large, politically-relevant numbers Enhanced ability to explore policy issues and to present the results clearly, concisely, and in compelling form in both written and oral communication All students read common materials about governments and the economy. Then each student analyzes one element in some detail. For example, a student might examine in detail a specific reform of national or state government taxes. Another might analyze trends and possible future directions regarding a relatively narrow area of national government spending. Another might analyze several changes in Social Security or Medicare or Medicaid or Temporary Assistance for Needy Families ( welfare ). Another might examine some element of the economic crisis. Another might examine a particular element of financial sector regulation. Another might examine arguments and data about effects of tax rate reductions on government revenues (the Laffer Curve ). I have designed the course to try to reduce the pain (and I hope increase the pleasure) of taking a course about a complex topic that potentially could involve a very large amount of reading. To do that, I have made the following changes over the past two years: reduced the reading load and selected course books that are not only recent but also relatively non-technical and do not require extensive economics background further reduced the out-of-class reading load by having students read and discuss in class some shorter items rather than assigning them for out-of-class reading during most classes a student discussion leader will summarize a reading so that not all students read all items reduced the number of response papers from five to four dropped the previous book analysis requirement, and sharply reduced the previous revise and re-submit paper requirement ps479s_winter_2012.docx, revised Monday, January 9, 2012

2 PS 479/579, American Political Economy, Winter 2012, page 2 Requirements and Grading: Courses that meet the University writing-intensive (WIC) requirement must include several kinds of oral and written communication. The course requirements are in two parts. The first part involves four relatively short Response Papers (RPs) and one short presentation in class supplementing that day s reading. The second part involves a policy analysis project, including a series of progress reports, an oral presentation, and a paper. Participation, including attendance and short in-class writing, is part of course requirements. Because participation is a central part of the course, regular attendance is expected. Students with more than three unexcused absences will lose course participation points for each additional unexcused absence. Graduate students (enrolled in PS 579) read and analyze an additional book (Hacker and Pierson, below) and also read and reflect for each RP a journal article relevant to the topic of that RP. In terms of point values, the requirements are: four Response Papers (RPs), each worth 100 points, a total of 400 points participation, attendance, and in-class writing (100 points) class discussion leader (one time, 50 points); and analysis paper (progress reports [40], oral presentation [60], written presentation [250]), 350 points total Graduate student analyses of an additional book and a journal article for each RP (200 points) A final course grade of A requires 90% (810 of 900 course points for PS 479; 990 of 1100 for PS 579), B 80% (720 or 880), C 70% (640 or 770), and D 60% (560 or 660). Within each grade range, the bottom three percentages are - and the top three are +. I will use improvement and possibly extra reading to help determine borderline grades. Questions and Difficulties: I have reduced course reading greatly since earlier years, but it remains important to read regularly and to plan for course assignments. Remember that students are to learn concepts, not memorize details. In addition, there are no closed-book quizzes or exams on course materials. Feel free to contact me about questions or problems, during office hours (see top of page 1), or by (address on page 1; indicate PS 479 on the subject line, even if in PS 579). The best way to contact me usually is by ; I am in my office often in addition to office hours, so often can be reach me by telephone or in person. Course Blackboard Web Site: Use PS_479_X001_W2012 for those enrolled in both PS 479 and PS 579. Course Reading: I have ordered all course books for 3-hour reserve in Valley Library, but I recommend purchase of at least some of the core texts. All core course books are available at the OSU Book Store. The core course books are the following, read in order listed. Each is available on 3-hour Valley Library reserve. Fulcher, Capitalism: A Very Short Introduction (Oxford, 2004) Eisner, The American Political Economy: Institutional Evolution of Market and State (Routledge, 2011) Chinn and Frieden, Lost Decades: Making of America s Debt Crisis and the Long Recovery (W.W. Norton, 2011) Lewis and Hildreth, Budgeting: Politics and Power (Oxford University Press, 2011). This textbook covers state and local budgeting as well as national government budgeting, which is the main focus of this course. Required for graduate students (also available on 3-hour reserve) and extra credit for undergraduates: Hacker and Pierson, Winner-Take-All Politics (paperback, Simon & Schuster, 2011). Recommended/Extra Credit (all are on reserve and in the OSU Bookstore) Weaver, Economic Literacy: Basic Economics with an Attitude, 3 rd edition, paperback (Rowman & Littlefield, 2011); this provides a very useful brief introduction to economics Bittle and Johnson, Where Does the Money Go?, revised edition (Harper Paperbacks, 2011); students can read and analyze this for the policy analysis Reich, Aftershock: The Next Economy and America s Future, updated paperback edition (Random House Vintage, 2011); a small part might be required; other parts are extra credit (except for students who read it in another of my courses fall quarter 2011) Reference Books: The following are textbooks about, first, public finance, second, economics generally, and third, writing. All are excellent references. A copy of each book is available on 3-hour Valley Library reserve. I strongly recommend that students read one or more chapters of the Gruber book for background information for their policy research project. (The contents pages of the first two books are available on pages below.) Gruber, Public Finance and Public Policy, 3 rd edition (Worth Publishers, 2011). This is an excellent overview of public finance in relation to public policy; students who used the second edition of this book in another class can

3 PS 479/579, American Political Economy, Winter 2012, page 3 use that edition for review, though they might want to update particular chapters with the 3 rd edition on reserve. Colander, Economics, 8 th edition (McGraw-Hill, 2010). This is an excellent introductory textbook which emphasizes historical, comparative, and behavioral aspects more than do most introductory economics texts. Students who want to buy a copy for reference now and later can buy it in reduced-price e-book format; ask me for details. Cuba, A Short Guide to Writing about Social Science, 4 th edition (Longman, 2002). This brief book provides much useful information about and guides for writing in the social sciences. I refer to it occasionally, below. Subscription: Students are required to subscribe to the Wall Street Journal (WSJ) at a sharply reduced student price ($11.95 for six weeks), using the signup form. Subscriptions will start week 3 or week 4. For students who want to subscribe to any of the following (totally optional), subscription information is below. I expect students to monitor (but not necessarily subscribe to) at least one daily publication relevant for studying governments and the economy. I especially recommend either the New York Times (NYT) or the Financial Times (FT). All of these have online sites, though for each of them some or much online material is available only to subscribers. The weekly British publication, The Economist, also is very good on US as well as worldwide politics and economics. All of these are available at reduced-rate student subscriptions. The following information is for those who want to subscribe (10-week prices indicated). New York Times: Students can get reduced subscriptions at the following online address: Subscription for home delivery gives access to all NYT online materials. The Financial Times: The FT is essentially the British WSJ, but because its coverage is more systematically worldwide, many economists prefer it to the WSJ. Subscriptions to the hard copy of the Financial Times is available at special student rates at this online address: $21.95 for 10 weeks. Digital student-rate subscription information (weekly prices about $1.15) for the Financial Times is available at The Economist is a very high quality weekly source. It is a British publication that presents more detailed examination of developments in the US and around the world than do Time, Newsweek, and similar US publications. To subscribe, visit this web site and indicate my faculty ID number (6303). Subscriptions start at $19.95 for 12 issues. Also, short-term (12 issues for $12) subscriptions are available at the following location (note: it is not totally clear if this rate is renewable): Written Assignments NOTE: On all graded written materials, indicate only your Student ID number, PS 479 (even if in PS 579), project name (e.g., RP 1), and the date you submit it. Do NOT indicate your NAME. Do not use a cover on any paper. Also, please number your pages and check that they are stapled together in the correct order. As indicated above, on any graded assignments, do NOT indicate your name. In the upper right corner of the first page indicate ID number, PS 479 (even if enrolled in PS 579), the assignment name, and the date submitted. On un-graded progress reports, however, please do write your name, the project name, and the date. Submit completed assignments in class or to the Political Science office, Gilkey Hall 307, by the deadline indicated for each. Number your pages; this helps be sure that pages are assembled in the correct order and so prevents errors. Do NOT use a cover (plastic or similar) on any written assignment. I prefer that you type single-spaced, with a line between paragraphs, with 1-inch margins on all sides. Guidelines for paper length are indicated for specific assignments. These are approximate and are estimates of what appears required to respond adequately to the elements of the assignment. I grade concise responses more highly than longer, less clearly written responses, though I do not specifically grade for length. Each paper should be carefully written and proofread. Use a spell checker and a grammar checker! Citations to course reading should use the author and page number(s), in parentheses after the material used (quotation, paraphrase, or any other use), e.g., (Stiglitz, pp ). You need not list these in citations at the end. Citations of non-course material should be complete: Author, Title, edition if 2 nd or later (City: Publisher, year) or web address and date accessed, using footnotes or preferred parenthetical references and citations at end.

4 PS 479/579, American Political Economy, Winter 2012, page 4 Many students engage in plagiarism presenting points that require citation without indicating source sometimes without realizing it. To avoid plagiarism (see also Cuba, pp ) you must give credit whenever you present: another person's idea, opinion, or theory (whether or not you directly quote) any facts, statistics, graphs, drawings any pieces of information that are not common knowledge; if in doubt about whether something is common knowledge, provide a cite (that is, err on the side of caution) direct quotations of another person's spoken or written words, or paraphrase of another person's spoken or written words (that is, re-wording what another person has said or written does not eliminate plagiarism) NUMBER the pages on all assignments, for ease in my commenting and to assure pages are in correct order. Criteria for Evaluating Written Work Response to each of the specific questions to be addressed Drawing on appropriate course materials and, if appropriate, materials from other sources Clear and well-written responses, showing use of spell checker, grammar checker, and careful organization OSU Writing Assistance The Oregon State University Center for Writing and Learning has very useful materials for helping the writing process, including online access. The address is Note especially the Online Writing Lab, to which you can submit a draft of your papers for feedback, the web resources, which has excellent links to writing resources, and Writing Tips and Handouts, including suggestions about many writing issues. You can schedule appointments for in-person consultation about your writing. The WIC Survival Guide is available here: Response Papers (RPs) Four response papers (RPs) are required, each worth 100 points, a total of 400 points. Each response paper is to examine course materials since the previous RP and is to follow the directions distributed in class. It is important that students reflect relevant items from current media coverage in RPs. Extra credit readings indicated for RPs can be reflected in that response paper, clearly identified as extra credit. Identify and then summarize and state your reaction to each of the chapters you read for extra credit. Each RP normally will be at least four single-spaced pages long, following general guidelines stated earlier, though papers that require a chapter-by-chapter summary usually are longer than those that omit a summary. Policy Analysis Paper The largest course component is a policy analysis paper, in which students apply course materials to one policy topic. We will discuss length expectations in class, but probably the paper will be 10 or more single-spaced pages long, plus any appendices. The paper is worth a maximum of 350 points total, allocated as 40 for the four progress reports, 60 for the oral presentation, and 250 for the written paper. Students can select one of the following or a variation for analysis. Note that students submit ideas and progress reports for this project, starting week 2, which count as part of the grade. Note also that a first draft of the opening part of the paper is due no later than Monday, February 27. I will return this to students with comments and suggestions, for revision for the final paper. The topics listed on page 1 above illustrate the kinds of group projects that students can use. This list enlarges. 1. Read and summarize in some detail Bittle and Johnson, Where Does the Money Go, revised updated edition (Harper paperbacks, 2011; on reserve and in the Bookstore). After summarizing the book relatively briefly, analyze at least two major items from those chapters. Analyze each in some detail: proposal contents, their likely effects on spending-taxing-deficit, and the main elements of the politics of adopting these proposals). Alternately, read part of the following Congressional Budget Office (CBO) item from March 2011 (a new edition will be published in February or March): Reducing the Deficit: Spending and Revenue Options, available at the full pdf report is available from this location. 2. Examine a specific category of national government spending, possibly using President Obama s proposals as starting points, examining trends in spending, justification for that spending, summary of proposals by former President G.W. Bush with your evaluation, and your spending proposal, with reasons carefully specified. Office of Management (OMB) and Budget and Congressional Budget Office (CBO) materials are important to use. (Note: This requires more locating of information than would essentially the same exercise in 1, above.)

5 PS 479/579, American Political Economy, Winter 2012, page 5 3. Analyze a particular tax change from President Obama, from former President Bush (2001 or later), or from an earlier President (for example, Reagan, George H. W. Bush, or Clinton), with careful examination of the initial proposal, the politics of the bill s adoption, the bill s contents as actually passed by Congress and how it differs from the original proposal, an analysis of likely effects, and your critique. Steuerle s Contemporary U.S. Tax Policy (book on reserve in OSU Valley Library) is an excellent starting point. 4. Analyze a possible tax reform proposal, probably at the national government level. In addition to Steuerle s book (above) on taxes, Slemrod and Bakija s Taxing Ourselves, and Gruber s Public Finance (available on reserve) are excellent resources, as are other course materials. 5. Read Reich, Aftershock (optional book). Read carefully his proposals on pages Summarize his proposals and relate them to Gruber s discussion in his Public Finance, chapter 23. Then analyze those proposals: content, likely effects, politics of adoption, and your evaluation, with your criteria stated carefully. 6. As with the previous two items except use tax proposals from one or several 2012 Republican presidential candidates, even if that person or persons no longer is in the race for the Republican nomination. (Note: the Tax Policy Center [ analyzes each of the candidate proposals in some detail.) 7. Read on two-day reserve in Valley Library the brief book State Tax Policy: A Political Perspective, 3 rd edition (2011), by David Brunori about state taxes. Then analyze the tax and spending structure of the state of Oregon and briefly evaluate it, based on that reading and your own careful thinking. (Note: Instead you can analyze revenue sources and spending for a particular state of Oregon budget category, e.g., higher education.) 8. Read on two-day reserve in Valley Library the brief book Local Tax Policy, 2 nd edition (2007) by Brunori about local taxes, and also read chapter 9 ( How to Read a Local Government Budget ) in the Lewis and Hildreth Budgeting core text. Briefly analyze the revenue sources and spending patterns for the city of Corvallis (or select another city for which you can access detailed budget information) and briefly evaluate it, based on the reading and your own careful thinking. 9. Analyze a proposed or possible change in Social Security, Medicare, Medicaid, or welfare, following guidelines stated above. Gruber, Public Finance and Public Policy, Part III is an excellent starting point. 10. Read two short paperbacks by Dean Baker, Plunder and Blunder (2009), about the early stages of the Great Recession (2009) and False Profits: Recovering from the Bubble Economy (2010), about policies and the recovery. (Both books are available on 2-day reserve in Valley Library.) Carefully state his arguments. Then compare, contrast, and evaluate his arguments in relation to Chinn and Friedan (core course text) and other materials. 11. Read at least three chapters in Congdon, Kling, and Mullainathan, Policy and Choice: Public Finance through the Lens of Behavioral Economics (Brookings, 2011; book on 3-hour reserve). Summarize the core points to those chapters and then apply those materials systematically to two or more topics in the course (e.g., taxes). 12. Read one or several chapters in Morgan, The Age of Deficits: Presidents and Unbalanced Budgets from Jimmy Carter to George W. Bush (book on 2-day reserve) and use that or those chapter(s) as starting points for examining the economic and budgetary policies of one president, from Carter to George W. Bush 13. Analyze some aspect of President Obama s economic policy or related topics. 14. Analyze some element of recent or proposed regulatory change, e.g., environmental or financial. 15. Analyze media coverage of a particular economic or similar topic, systematically examined. 16. Analyze public opinion data about taxing, spending, or a similar topic. This requires locating and analyzing a data set, not just data summaries. This requires advance permission from me; talk with me about ideas. 17. In Longley, Mayer, Schaller, and Sloan, Deconstructing Reagan, available in Valley Library (3-hour reserve), read carefully chapter 2 (by John Sloan), about Reagan economic policies. Carefully state his argument and evidence. Then draw on some sources he cites, other relevant sources, and your research to evaluate strengths and weaknesses of his argument. Make clear your logic and carefully draw on, and cite, a range of relevant sources. 18. Analyze a theoretical issue, such as the Laffer curve in relation to tax rates and government revenues, elements of public employee pay, or similar relatively narrowly-defined topics. 19. Another policy topic chosen in consultation with/approved by me, no later than the end of the second week. We will discuss in class the length of oral presentations. Each student should select an element of the research paper to present, one that is sufficiently self-standing to be understandable without the entire paper as background. Among the components that might be included in the written (and possibly oral) analysis are the following: 1. Define and describe the problem and consider alternative definitions 2. Carefully describe factors of the political context that affect the possibility of policy adoption, including public views, important actors (in and out of government), and so on 3. Examine a range of alternative solutions, including both US and other-nation practices

6 PS 479/579, American Political Economy, Winter 2012, page 6 4. Evaluate possible solutions in terms of various value and other considerations 5. Describe the policy proposal and systematically suggest some likely effects of that policy, if adopted 6. Examine the political feasibility of adoption 7. Consider administrative feasibility issues 8. Propose a solution or small set of solutions 9. Suggest a political strategy that you believe would enhance the feasibility of the policy s adoption Students working on the closely related research projects can form a team, who can share information and insights, though each student will write his or her own analysis. I will enlarge on these points in class. (Cuba, Short Guide, ch 4 and 5, is useful for suggestions.) Discussion Leader One time during the quarter, beginning week 3, each student will lead course discussion about core elements of specific additional reading for that day. Discussion leaders read and present to the class an additional item(s), which I will specify or help select. We will decide the dates and topics for each student early in the quarter. Discussion leader is worth 50 points. Each discussion leader or team writes a 1-2 page single-spaced abstract of the reading for that day, to be distributed in class. Submit your abstract to me sufficiently early that day to allow time to make photocopies to distribute. The abstract should do the following concerning that reading: summarize the main points, suggest how the reading relates to course themes and other course materials, and state strengths and weaknesses, political implications, or other elements that arise from the reading used as the basis for the class discussion. (About abstracts, see Cuba, Short Guide, pp ) Participation I expect students to attend and participate regularly in the course, showing they have come prepared to discuss the topics of the day by having read and thought about the assigned materials. This includes drawing on relevant parts of current media. Course participation, including in-class writing, is 100 points. Because participation is central and requires, at minimum, attendance, I will record attendance, though participation in discussion is a more important criterion than attendance per se. Policy-Related Web Sites A list of policy-related web sites is available in Blackboard documents. This also provides guidance to blogs that students should monitor during the quarter. Topic and Reading Schedule The overall structure of the course includes four parts (weeks are approximate): Part I: Weeks 1 and 2: Introduction to core concepts and issues in relation to capitalist and socialist economic systems and to the recent and current social-economic structure of the United States Response Paper 1 Due Part II: Weeks 3 and 4: The development of the American political economy, with special attention to regulation Response Paper 2 Due Part III: Weeks 5 and 6: Responses to the Great Recession in the United States, including approaches, tools, limits Response Paper 3 Due Part IV: Weeks 7, 8, and 9: Fiscal and monetary policy, including taxing and spending in some detail Response Paper 4 Due Week 10. Individual student presentations of core elements of their analyses Analysis Paper Due Overview of Course Due Dates (subject to slight change, as announced in class) Note that a response paper is due at the end of each part of the course, responding to questions distributed a week in advance. Four project reports are due alternate Wednesdays, at two-week intervals, beginning week 2. By Wednesday, January 11 Complete and turn in the course grade form (the last page of this syllabus) Wednesday, January 18 Project Report 1: Project initial statement of topic, with reasons for selection Friday, January 20 Response Paper (RP) 1 due by 5 pm, in class or Political Science office (Gilkey 307)

7 PS 479/579, American Political Economy, Winter 2012, page 7 Wednesday, February 1 Project Report 2: Revised project report, with initial bibliography of sources and data sources likely to be useful Friday, February 3 RP 2, no later than 5 pm, in class or in Political Science office (Gilkey 307) Wednesday, February 15 Project Report 3: Detailed progress report about research topic, with initial bibliography of sources, including data sources, likely to be useful Friday, February 17 Monday, February 27 RP 3, no later than 5 pm in class or in Political Science office First draft of opening part of policy analysis paper is due to enable comments for revision Monday, March 5 Project Report 4: Detailed progress report about research topic, including final bibliography and outline of core points of oral presentation Friday, March 9 RP 4, no later than 5 pm, in class or in the Political Science office, Monday, March 12 Monday, March 19, 5 pm First day or student presentations of policy analyses Written policy analysis due in Political Science office [tentative due date] Students should focus on the following in relation to each course topic: What are the core definitions, concepts, and trends (data) relevant for this policy topic? What are the main features of current policies and alternative policies? What are the main elements of the politics of current and alternative policies? That is, what factors influence the adoption and implementation of current policies and affect the possible emergence of new policies? What are the main sources of uncertainties and disagreements about the policy? I have ordered all required books for reserve in Valley Library. I have listed books by name of author(s). Read regularly to be able to participate in class discussion. Study carefully the graphs and similar in course books. Know core points and supporting details of chapters. In addition to required reading, also regularly look at one or more daily media, especially the Wall Street Journal, the Financial Times, the New York Times, and possibly others, e.g., The Economist. I also recommend monitoring television news coverage occasionally. Detailed Topic and Reading Schedule The course books have different aims and so different uses in the course. They will be read in this order: Fulcher, Capitalism: A Very Short Introduction: This book, part of the Oxford very short books series, presents a brief but well done overview of capitalism. Eisner, The American Political Economy: Eisner examines the relationship of US economic and political realms since about 1900, emphasizing that the two are much less distinct than Americans tend to believe. Chinn and Frieden, Lost Decades: Making of America s Debt Crisis and Long Recovery: This is a recent analysis of the Great Recession and of government responses to those developments. Lewis and Hildreth, Budgeting: Politics and Power: This considers taxing and spending at all levels of US government, but with special attention to the national level. Hacker and Pierson, Winner-Take-All-Politics: This is required for PS 579 students and extra credit (and strongly recommended) for PS 479 students. This is an important recent interpretation of developments in the American political economy from a critical perspective, emphasizing evaluation as well as description. Three reference books: Most students will read one or several chapters from one or more of the following books, all of which are available on three-hour reserve in Valley Library. Cuba, A Short Guide to Writing about Social Science, 4 th edition (Longman, 2002). This brief book provides much useful information about and guides for writing in the social sciences. Gruber, Public Finance, 3 rd edition (Worth, 2011 This presents carefully examination of government actions in relation to what economists commonly label public finance, that is, government taxing, spending, and related. I expect that each student will read and reflect in research reports the relevant chapter(s) in this book concerning their research topics. (Students who have used the second edition of Gruber s book for another class can use it instead, though the 3 rd edition has been updated significantly; a copy of the book is on Valley Library 3-hour reserve. See the contents on page 11, below.) Colander, Economics, 8 th edition. As noted earlier, this is an excellent introductory textbook, which emphasizes historical, comparative, and behavioral aspects more than do most introductory economics texts. Those who want a brief overview/review of economics elements can read part of this book. See contents on pages below.

8 PS 479/579, American Political Economy, Winter 2012, page 8 Detailed Topic and Reading Schedule (subject to slight change; I will announce any changes in class; major changes I will post on Blackboard documents in a revised syllabus). In addition to items shown, handouts and Blackboard items will be important for some classes. Part I. Introduction to the Course and an Overview of Capitalism, Socialism, and the US Setting 1. Monday, January 9. Course Introduction and US in Comparative Perspective I Begin Fulcher, Capitalism: A Very Brief Introduction. Think carefully about what is distinctive about capitalism. Note: During the first week of the quarter, each student will talk with me outside of class to discuss the course, its requirements, and questions; available times will be announced in class and a signup sheet provided. Note: In many classes, I will provide short items to read and discuss in class from such sources as the WSJ, NYT, FT, government data, and similar. This will reduce out-of-class reading and, I hope, stimulate discussion. 2. Wednesday, January 11. US in Comparative Perspective II Complete Fulcher, Capitalism Important Reminder for PS 579 students: Graduate students read a journal article for each RP and attach to the RP a summary of the journal article and a discussion of how it relates to that part of the course; attach the first page of the journal article (the abstract ) as part of the summary and discussion. Select a journal article for each RP that is relevant for the topics covered in that RP. Students can select a journal article mentioned by Hacker and Pierson, in Winner-Take-All Politics or select a relevant journal article in some other way. PS 579: During this part of the course, read and reflect in RP 1 Hacker and Pierson, Winner-Take-All Politics, Introduction and chapter 1 (the book is available on 3-hour reserve in Valley Library) and one relevant journal article (possibly mentioned by Hacker and Pierson); include the first journal article page (with abstract) in the RP Recommended: Colander, Economics, 8 th ed, ch 3, Economic Institutions (especially Appendix A, History of Economic Systems [pp 78-82] and/or ch 1, Economics and Economic Reasoning (book available on reserve) 3. Monday, January 16. No class: Martin Luther King Birthday celebrated 4. Wednesday, January 18. The Recent and Current US Social-Economic Setting Handouts and/or items placed in Blackboard Recommended: Colander, Economics, 8 th ed, Student Preface and ch 6, Thinking Like a Modern Economist Reminder: Sign up no later than today for the minimum 6-week subscription to the Wall Street Journal (WSJ) Due: Progress Report 1 (project initial statement of topic, with reasons for selection) Due FRIday, January 20: Response Paper 1 (RP 1), in class or to the Political Science office, Gilkey Hall 307, no later than 5 p.m. Part II. Development of the US Political Economy and the Relationship of Political and Economic Spheres Note: President Obama will present his budget year 2013 proposals probably during the next several weeks. Pay attention not only to those proposals but also to how journalists present those proposals. 5. Monday, January 23. The American Political Economy I: Beyond the Market-State Dichotomy Eisner, American Political Economy, ch 1-4; read ch 1-2 especially carefully to understand his core points; note: as this reading illustrates, generally less reading is assigned for Wednesdays than for Mondays. This week you should begin to check regularly at least four economics blogs, including Thoma, Krugman, Baker, and at least one other (see the links identified in the bibliography item in Blackboard documents; you might want to use such blog aggregators as Google Reader or Bloglines to monitor these and possibly other blogs) Also during this week, begin to locate data relevant for your project. Among the sources you should examine are Statistical Abstract of the United States and other items listed on the separate links item in Blackboard. PS 579: During this part of the course, read and reflect in RP 2 Hacker and Pierson, Winner-Take-All Politics, chapters 2-4 (the book is on 3-hour reserve in Valley Library) and one relevant journal article (possibly mentioned by Hacker and Pierson); include the first journal article page (with abstract) in the RP 6. Wednesday, January 25. The American Political Economy II: The Post-New Deal and Keynesianism Eisner, American Political Economy, ch Monday, January 30. The American Political Economy III: The Emergence and Effects of Neoliberalism (Which Is Not Liberalism as Americans Use the Term) Eisner, American Political Economy, ch Wednesday, February 1. The American Political Economy IV: Overview of Financial Crisis and Responses Eisner, American Political Economy, ch 10-11; chapter 10 introduces materials to be studied in more detail in the next section of the course Due: Response Paper 2 (RP 2), no later than 5 p.m. Friday, February 3, in the Political Office (Gilkey 307)

9 PS 479/579, American Political Economy, Winter 2012, page 9 Due: Progress Report 2 (revised project statement, with initial bibliography of sources and of data sources likely to be useful for the chosen research topic, as well as any questions) Part III. Analyzing the Great Recession and Government Responses 9. Monday, February 6. Analyzing the Great Recession I Chinn and Frieden, Lost Decades: Making of America s Debt Crisis and the Long Recovery, Preface and ch 1-3 Recommended: Colander, Economics, 8 th ed, ch 24, Business Cycles, and/or ch 25, Measuring the Economy, and/or Weaver, Economic Literacy, ch 3, The Economy as a Whole: Definitions and Analyses PS 579: During this part of the course, read and reflect in RP 3 Hacker and Pierson, Winner-Take-All Politics, chapters 5-7 (the book is on 3-hour reserve in Valley Library) and one relevant journal article (possibly mentioned by Hacker and Pierson); include the first journal article page (with abstract) in the RP 10. Wednesday, February 8. Analyzing Great Recession II: Regulation and Changes Eisner, Worsham, and Ringquist, Contemporary Regulatory Policy, 2 nd edition, ch 1 ( A Primer on Regulation ) and ch 3 ( A Brief History of Contemporary Regulatory Politics; both available in Blackboard documents; recommended: ch 2 ( Explaining Regulatory Change; the book is available on 2-hour reserve), AND EITHER Eisner, Worsham, and Rinquist, Regulating Financial Intermediaries, ch 5 in their Contemporary Regulatory Policy, 2 nd edition (chapter in Blackboard documents; book on reserve) OR Pilloff, The Banking Industry, chapter 10 in Brock, Structure of American Industry, 12 th edition (chapter in Blackboard, book on reserve) Recommended: Gruber, Public Finance and Public Policy, 3 rd edition, ch 5, esp. pp and (externalities); and/or Colander, Economics, 8 th ed, ch 21, Market Failure versus Government Failure; and/or Weaver, Economic Literacy, 3 rd edition, ch 3, The Economy as a Whole 11. Monday, February 13. Analyzing Great Recession III: Meltdown and Response Chinn and Frieden, Lost Decades, ch 4-6 Recommended: Colander, Economics, 8 th ed, ch 30, Financial Sector and Economy, and/or ch 31, Monetary Policy, and/or ch 32, Financial Crises, Panics, and Macroeconomic Policy; and/or Weaver, Economic Literacy, ch 4, Fiscal Policy, Monetary Policy, Recession, and Inflation 12. Wednesday, February 15. Analyzing the Great Recession IV: Evaluating Policies and Future Responses Chinn and Frieden, Lost Decades, ch 7-9 Strongly Recommended: Stiglitz, Freefall, chapter 9, Reforming Economics (Blackboard documents); this examines the challenges to the economics discipline that arise from the Great Recession Recommended (reserve): Colander, Economics, 8 th ed, ch 22, Behavioral Economics and Modern Economic Policy; an excellent set of links to materials in behavioral economics is available through Robert Shiller s class at Yale: Due: Project Report 3: Detailed progress report about research topic, including revised bibliography of sources, including data sources, likely to be useful for the research project Due: Response Paper 3 (RP 3), no later than 5 p.m. Friday, February 17, in the Political Office (Gilkey 307) Part IV. Fiscal Policy: Taxing and Spending Politics and Policies 13. Monday, February 20. Government Economic Approaches and Tools of Governments and Introducing Government Budgets Dolan, Frendreis, and Tatalovich, The Presidency and Economic Policy, ch 4 ( Presidential Budgeting and Fiscal Policy ), ch 6 ( Presidential Economic Management, Approaches, and Policies ), and ch 8 ( Presidential Economic Scorecard [Blackboard documents]); read for core points about fiscal policy approaches, tools, limits Note: During this part of the course students should read (and possibly download and/or pring) my Political Information chapter (Blackboard documents) Lewis and Hildreth, Budgeting: Politics and Power, Preface, Introduction, and ch 1-2; suggestion: skim in Blackboard documents the Lewis-Hildreth document Internet Resources by Topic, available also at the book web site: Reminder: A draft of opening part of policy paper is due Monday, February 27 PS 579: During this part of the course, read and reflect in RP 4 Hacker and Pierson, Winner-Take-All Politics, chapters 8 through Conclusion (the book is on 3-hour reserve in Valley Library) and one relevant journal article (possibly mentioned by Hacker and Pierson); include the first journal article page (with abstract) in the RP Recommended: Gruber, Public Finance and Public Policy, 3 rd edition, ch 4 ( budgets ), esp. pp and , and/or Colander, Economics, 8 th edition, ch 29, Thinking Like a Modern Macroeconomist; and/or Weaver, Economic Literacy, 3 rd edition, ch 4, Fiscal Policy, Monetary Policy, Recession, and Inflation

10 PS 479/579, American Political Economy, Winter 2012, page Wednesday, February 22. Government Budget Processes and Public Views Lewis and Hildreth, Budgeting: Politics and Power, ch 3-5 (read for basic points about budget processes) Read any one of the following (each available in Blackboard documents): Bartels, Homer Gets a Tax Cut, or (slightly more technical) Slemrod, The Role of Misperceptions in Support for Regressive Tax Reform, or Blinder and Krueger, What Does the Public Know about Economic Policy, and How Does It Know It? (skim the Comment/Discussion section at the end) Today: In-class demonstration of Excel procedures needed for class 15) Suggestion: Plan ahead to locate the data and produce the graphs for the next class. 15. Monday, February 27. Government Spending Lewis and Hildreth, Budgeting: Politics and Power, ch 6 Skim in Budget 2013 Historical Tables parts 1 and 2 (pages ; numbers at tops of pages) and note trends (available at this online site: then Review parts of the Budget of the United States 2013 Historical Tables to examine trends in one national government spending category. Bring to class a 1 to 2-page statement in which you summarize carefully trends in national government spending on a narrow element of national government spending. Attach one or more tables from Budget 2013 Historical Tables (see class 14) to provide relevant data. Also use Excel or similar to produce one or more graphs of that spending over time, in current (non-inflation-adjusted) dollars, real (inflation-adjusted) dollars, as percent of national government outlays, and percent of the economy (GDP). Note that Excel files of budget historical data are available at the OMB 2013 budget site. Recommended: Gruber, Public Finance and Public Policy, 3 rd edition, ch 7 ( public goods ), esp. pp and select among remaining sections, and/or ch 10 (state-local government), esp. pp , and/or ch 11 (education), esp. pp ; some specific national government spending categories: ch 13 (Social Security; required reading later), ch 14 (unemployment, disability, workers compensation), ch (health insurance), and ch 17 ( welfare [public assistance] programs); and/or Colander, Economics, 8 th edition, ch 33, Inflation and Phillips Curve, and/or ch 34, Deficits and Debt Due: Draft of opening part of policy paper due 16. Wednesday, February 29. Raising Revenues I (no discussion leader today) Lewis and Hildreth, Budgeting: Politics and Power, ch 7, 8, and 10 Read either Steuerle, Contemporary U.S. Tax Policy, ch 3 ( A Summary of Changes in the Overall Tax System, 32 pp) and skim the Appendix (tax data); both chapters in Blackboard documents and book on reserve), or Birney, Shapiro, and Graetz, Political Uses of Public Opinion: Lessons from Estate Tax Repeal, chapter 11 in Shapiro, Swenson, and Dono, Divide and Deal (2008; Blackboard) Recommended: Colander, Economics, ch 8, Taxation, and/or especially ch 35, Modern Fiscal Policy Dilemma 17. Monday, March 5. Raising Revenues II: Alternative US National Government Tax Structures Gruber, Public Finance and Public Policy, 3 rd edition, ch 18 ( Taxation in the U.S. and Around the World ), esp. pp and , and ch 25 ( Fundamental Tax Reform ); a copy of these chapters will be available in Blackboard, with PowerPoint slides of each chapter s graphics; the book is on 3-hour reserve in Valley Library. Read one additional chapter in Gruber, from among ch 21 ( taxes on labor supply ), ch 22 ( taxes on savings ), ch 23 ( taxes on risk taking and wealth ), and ch 24 ( corporate taxation ), focusing on main issues. Addition reading might be placed in Blackboard and announced and/or distributed in class. Reminder: During this part of the course students should read (and possibly download to save) my Political Information chapter (Blackboard documents) Due (note Monday, not Wednesday, so that I can return comments Wednesday): Project Report 4: Detailed progress report about research topic, including final bibliography and outline of core points of oral presentation 18. Wednesday, March 7. Detailed Budget Analysis: (Tentative) Social Security Policy and Issues (no discussion leader today) Tentative: Gruber, Public Finance and Public Policy, 3 rd edition, ch 13 (esp. pp and ) Possibly additional reading to be placed in Blackboard and announced and/or distributed in class. Recommended: Gruber, Public Finance and Public Policy, 3 rd edition, ch 17 ( Income Distribution and Welfare ), and/or Colander, Economics, 8 th edition, ch 20, Who Gets What: Distribution of Income Due: Response Paper 4 is due no later than 5 p.m. Friday, March 9, in class or to the Political Office (Gilkey 307) Student Presentations 19. Monday, March 12. Student Presentations I Student presentations of core elements of their analyses

11 PS 479/579, American Political Economy, Winter 2012, page Wednesday, March 14. Student Presentations II Student presentations of core elements of their analyses, Continued Due Monday, March 19, end of day (5 pm): Policy Paper (tentative; specific date to be decided in class) The following books might be useful for reference, so the tables of contents might be helpful. Jonathan Gruber, Public Finance and Public Policy, Third Edition 2011, Worth Publishing Company Companion Web Site: Table of Contents Preface... (10 pages) xxvii Part I. Background 1. Why Study Public Finance? Theoretical Tools of Public Finance Empirical Tools of Public Finance Budget Analysis and Deficit Financing Part II. Externalities and Public Goods 5. Externalities: Problems and Solutions Externalities in Action: Environmental and Health Externalities Public Goods: Problems and Solutions Cost/Benefit Analysis Implementing Public Goods: Political Economy and Public Choice State and Local Government Expenditures Public Goods in Action: Education PART III. SOCIAL INSURANCE AND REDISTRIBUTION 12. Social Insurance Social Security Unemployment Insurance, Workers Compensation and Disability Insurance Health Insurance I: Health Economics and Private Health Insurance Health Insurance II: Medicare and Medicaid Income Distribution and Welfare PART IV. TAXATION IN THEORY AND PRACTICE 18. Taxation in the U.S. and Around the World The Equity Implications of Taxation Tax Incidence Tax Inefficiencies and Their Implications for Optimal Taxation Taxes on Labor Supply Taxation of Savings Taxes on Risk Taking and Wealth Issues of Corporate Taxation Fundamental Tax Reform Glossary... G1 Colander, Economics, 8th Edition (McGraw-Hill, 2010) Table of Contents Preface to the Professor... ix Preface for the Student: Alternative Perspectives... [4 pages] xxiii Part 1 Introduction: Thinking Like an Economist Chapter 1. Economics and Economic Reasoning... 4 Chapter 2. The Production Possibility Model, Trade, and Globalization Chapter 3. Economic Institutions Chapter 4. Supply and Demand Chapter 5. Using Supply and Demand Chapter 6. Thinking Like a Modern Economist