Category: Syllabus

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Courses Harvard Suggested Reading Syllabus

Harvard. Junior Year Theory of Production and Distribution of National Income. Haberler and Leontief, 1942.

 

 

The last time Economics 1 was offered as a year course (1939-40), it was taught by Professor Chamberlin, Associate Professor Leontief and Instructor O.H. Taylor. Starting in the academic year 1940-41, Economics 1 was split into the two semester courses Economics 1a (Chamberlin: Economic Theory) and 1b (O.H.Taylor: Intellectual Background of Economic Thought). Two years later, 1941-42, the second semester course 1b was taught by Professor Haberler and Associate Professor Leontief under the title “Theory of Production and Distribution of the National Income”. In 1942-43, Economics 1b as “Theory of Production and Distribution of the National Income” was taught a last time by Professor Leontief and Dr. Monroe.

Here is a recently added link to the final examination questions for the 1941-42 course taught by Haberler and Leontief.

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Course enrollment

*1b 2hf. Professor Haberler and Associate Professor Leontief.–Theory of Production and Distribution of National Income.

Total 27: 2 Seniors, 22 Juniors, 3 Sophomores.

Source: Report of the President of Harvard College and Reports of Departments for 1941-42, p. 62.

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Economics 1b
1941-42

 

  1. Theory of Wages
  2. Theory of Capital and Interest
    1. Capital goods as factors of production. Stock vs. flow concepts. Durable and non-durable goods. Money capital and the rate of interest. Demand for capital by an individual firm.
    2. Time preference. Propensity to save.
    3. Interrelation of production and consumption goods industries. General equilibrium. national Income, Saving, and Investment.
  1. Theory of Profits
  1. Introduction to Welfare Economics

Modern theory of utility. Individual vs. social utility. Distribution of national income. Private vs. social marginal product.

 

Readings in: (Specific chapter and page of assignments will be given later.)

Paul Douglas, The Theory of Wages.
Meade and Hitch, An Introduction to Economic Analysis.
Böhm-Bawerk, Positive Theory of Capital.
J. B. Clark, The Distribution of Wealth.
Irving Fisher, The Theory of Interest (1930).
J. M. Keynes. General Theory of Interest and Unemployment.
K. Wicksell, Lectures on Political Economy. [Volume I; Volume II]
Pigou, Economics of Welfare.
Triffin, Monopolistic Competition and General Equilibrium Theory.

Articles by Frank Knight in the Journal of Political Economy and by A. Lerner in the Economic Journal.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. (HUC 8522.2.1) Box 3, Folder “Economics, 1941-1942”.

Image Source:  Harvard Class Album 1942.

 

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Courses Harvard Suggested Reading Syllabus

Harvard. Junior Year Economic Theory, Chamberlin. 1940

 

 

The last time the undergraduate course Economics 1 (Economic Theory) was offered as a full year course (1939-40), it was taught as an honors course by Professor Edward Chamberlin, Associate Professor Wassily Leontief and Instructor O.H. Taylor. Starting in the academic year 1940-41, Harvard’s Economics 1 was split into back-to-back semester courses Economics 1a (Chamberlin: Economic Theory) and 1b (Taylor: The Intellectual Background of Economic Thought). Two years later the second semester course 1b was taught by Professor Haberler and Associate Professor Leontief under the title “Theory of Production and Distribution of the National Income” (1941-42).

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Course Enrollment

*1a 1hf. Professor Chamberlin.—Economic Theory.

Total 63: 1 Senior, 56 Juniors, 6 Sophomores.

 

Source: Report of the President of Harvard College and Reports of Departments for 1940-1941, p. 58.

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ECONOMICS 1a
1940-41
Revised Outline

  1. The Law of Supply and Demand. Meaning and Generality. Relation to the Law of Cost. Cost curves and supply curves. Relation to monopoly and to competition. Pure and perfect competition. Market problem illustrating deviations from “equilibrium” as defined by perfect competition. Equilibrium vs. the equation of supply and demand.

Mill—Principles, Book III, chapters 2, 3, 5.
Chamberlin—Monopolistic Competition, chapters 1, 2.
Henderson—Supply and Demand, chapters 1,2.
Marshall—Principles, pp. 348-350; p. 806 note.

  1. Competitive theory, illustrated by Marshall.

Marshall—Principles, Book V, chapters 1-5; book IV, chapter 13; Book V, chapters 8, 9, 10, 12.

  1. The effect of small numbers in the market.

Monopolistic Competition, Chapter 3.

  1. Product differentiation. Co-existence and blending of monopoly and competition. Output (sales) as a function of price, “product” and selling outlays. Price-quantity relationships examined in some detail, selling costs and products as variables more briefly.

Monopolistic Competition, chapters 4, 5, 6, 7 (pp. 130-149), Appendices C, D, E.
Alsberg, C. L.—“Economic Aspects of Adulteration and Imitation,” Q.J.E., Vol. 46, p. 1 (1931).

  1. Production and Distribution. Diminishing returns. Diminishing marginal productivitiy. The laws of cost. General effect of monopoly elements on the analysis.

Garver & Hansen—Principles, chapter 5.
Viner, J.—“Cost Curves and Supply Curves,” Zeitschrift für Nationalökonomie, 1931.
Monopolistic Competition, Appendix B.

  1. Theory of Wages.

Hicks, J. R.—Theory of Wages, chapters 6, 7.

  1. Profits.

Henderson, Supply and Demand, Ch. 7.

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ECONOMICS 1a
1940-41

  1. The Law of Supply and Demand. Meaning and Generality. Relation to the Law of Cost. Cost curves and supply curves. Relation to monopoly and to competition. Pure and perfect competition. Market problem illustrating deviations from “equilibrium” as defined by perfect competition. Equilibrium vs. the equation of supply and demand.

Mill—Principles, Book III, chapters 2, 3, 5.
Chamberlin—Monopolistic Competition, chapters 1, 2.
Henderson—Supply and Demand, chapters 1,2.
Marshall—Principles, pp. 348-350; p. 806 note.

  1. Competitive theory, illustrated by Marshall.

Marshall—Principles, Book V, chapters 1-5; book IV, chapter 13; Book V, chapters 8, 9, 10, 12.

  1. The effect of small numbers in the market.

Monopolistic Competition, Chapter 3.

  1. Product differentiation. Co-existence and blending of monopoly and competition. Output (sales) as a function of price, “product” and selling outlays. Price-quantity relationships examined in some detail, selling costs and products as variables more briefly.

Monopolistic Competition, chapters 4, 5, 6, 7 (pp. 130-149), Appendices C, D, E.
Alsberg, C. L.—“Economic Aspects of Adulteration and Imitation,” Q.J.E., Vol. 46, p. 1 (1931).

  1. Production and Distribution. Diminishing returns. Diminishing marginal productivitiy. The laws of cost. General effect of monopoly elements on the analysis.

Garver & Hansen—Principles, chapter 5.
Viner, J.—“Cost Curves and Supply Curves,” Zeitschrift für Nationalökonomie, 1931.
Monopolistic Competition, Appendix B.

  1. Theory of Wages.

Hicks, J. R.—Theory of Wages, chapters 6, 7.

  1. Theory of Capital and Interest.

Clark, J. B., The Distribution of Wealth, Chapters 9 and 10.
Böhm-Bawerk, The Positive Theory of Capital, Book II, Chs. 2 and 5, Book V.

  1. Profits.

Marshall, Book VI, Ch. 5, section 7; Chs. 7, 8.
Taussig, Principles, Vol. II, Ch. 50, section 1.
Henderson, Supply and Demand, Ch. 7.
Berle and Means, The Modern Corporation, Book IV.
Chamberlin, Monopolistic Competition, Ch. 5, section 6; Ch. 7, section 6; Appendices D, E; Ch. 8.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. (HUC 8522.2.1) Box 2, Folder “Economics, 1940-1941”.

Image Source: Harvard Class Album 1946.

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Courses Suggested Reading Syllabus Wisconsin

Wisconsin. Milton Friedman’s Reading Assignments in Economic Theory, 1940-1

 

 

In the previous post we have the syllabus for the summer course Economics 150 (Economic Theory) taught by James S. Earley in 1940. It is interesting to compare that syllabus with the reading assignments transcribed below for the same course as taught by Milton Friedman at the University of Wisconsin sometime during the academic year 1940-41 when Earley was on leave from the university. We see significant overlap but there are differences (e.g. Smith and Mill were added by Friedman). It is also interesting to compare this to the course “The Structure of Neoclassical Economics” taught by Milton Friedman in 1939-40 at Columbia.

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Reading Assignments in Economics 150
Instructor: Milton Friedman

*Recommended but not required.

Alfred Marshall, Principles of Economics, Book III, ch. 2, 3, 4; Book V, ch. 1, 2.
F. H. Knight, Risk, Uncertainty and Profit, ch. 3.
Frederic Benham, Economics, pp. 89-100.
*J. R. Hicks, Value and Capital, pp. 11-37.
Marshall, Book V, ch. 3, 4, 5, 12, Appendix H.
A. L. Meyers, Elements of Modern Economics, ch. 5, 7, 8, 9.
Joan Robinson, Economics of Imperfect Competition, ch. 2.
J. M. Clark, The Economics of Overhead Cost, ch. 9.
Jacob Viner, “Cost Curves and Supply Curves”, Zeitschrift fuer Nationaloekonomie, Bd. III (Sept., 1931), pp. 23-46 (in English)..
Edward Chamberlin, The Theory of Monopolistic Competition, Ch. 3, sec. 1, 4, 5, 6; ch. 5.
*M. Abramovitz, “Monopolistic Selling in a Changing Economy”, Q.J.E., Feb., 1938, pp. 191-214.
R. F. Harrod, “Doctrines of Imperfect Competition”, Q.J.E., May 1934 sec. 1, pp. 442-61.
Marshall, Book V, ch. 6.
J. B. Clark, The Distribution of Wealth, Preface, ch. 1, 7, 8, 11, 12, 13, 23.
John Stuart Mill, Principles of Political Economy, Book II, ch. 14.
J. R. Hicks, Theory of Wages, ch. 1-6.
Adam Smith, The Wealth of Nations, Book I, ch. 10.
Marshall, Book VI, ch. 1-5.
Simon Kuznets and Milton Friedman, “Incomes from Independent Professional Practice”, Bulletin 72-3, National Bureau of Economic Research, sec. 5, appendix.
F. H. Knight, “Interest,” in Encyclopedia of the Social Sciences, also in Ethics of Competition.
J. M. Keynes. General Theory of Employment, Interest and Money., ch. 11-14.

Source: Hoover Institution Archives. Papers of Milton Friedman. Box 76, Folder 6 “University of Chicago Econ. 150 [sic, “University of Wisconsin 1940-41” is correct].

Image Source: Columbia University, Columbia 250 Celebrates Columbians Ahead of Their Time.

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Courses Suggested Reading Syllabus Wisconsin

Wisconsin. Economic Theory Syllabus. James S. Earley, 1940

 

James S. Earley was an assistant professor of economics on leave from the University of Wisconsin during Milton Friedman’s year in Madison, 1940-41. The syllabus for his course transcribed for this post was found in Milton Friedman’s papers along with Friedman’s own syllabus for the course (next post).

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James S. Earley, Life and resources.

1908 (October 16) Born, Valley City, North Dakota
1932 A.B., Antioch College
1934 M.A., University of Wisconsin
1937-67 Faculty member at the University of Wisconsin
1939 Ph.D., University of Wisconsin
1940-41 Economist, National Defense Advisory Commission and Office of Price Administration and Civilian Supply
1941-45 Economist, Office of Price Administration, serving as member of the Economic Adviser’s Panel and later as Head Economist in the Office of the Economic Adviser
1945 Adviser on British Commonwealth Financial Affairs, Department of State
1967- University of California, Riverside
1997 (July 5) Died in Riverside, CA

Earley’s wartime papers (1942-1945) are available at the Harry S. Truman Library.

An Oral History Interview with James Earley was conducted in 1982 and is available on-line at the UW-Madison Oral History Program. He discusses the hiring of Milton Friedman at 41:43 of the second part of the interview.

Warren J. Samuels, (2003), Lectures by James S. Earley on the development of economics, University of Wisconsin, 1954–1955, in Warren J. Samuels (ed.) Histories of Economic Thought (Research in the History of Economic Thought and Methodology, Volume 21 Part 2) Emerald Group Publishing Limited, pp.89 – 271

 

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ECONOMICS 150S—ECONOMIC THEORY
Summer Session, 1940

James S. Earley
Syllabus

Six Week Session: Topics I-VII, inclusive
Eight Week Session: Topics I-XI, inclusive

 

(**before a reference denotes reading requires of all students. *denotes reading required of graduate students but not of undergraduates. References marked ≠ are required of undergraduate students only. Other references are for additional reading, as desired. Copies of all required works will be found in Bascom Reading Room or in the Periodical Room; most of the others will also be found in Bascom. Full titles and references are given in the appended bibliography.)

 

I. (June 25, 26)
Nature, Purposes, and Methods of Economic Analysis

**Marshall, Appendices C, D.: Book I, Chap. III.
Meyers, Chapters I, II.
Keynes, J. Neville.
Knight, Ethics of Competition, pp. 105-47.
Knight, Risk, etc., Chap. I.
McIsaac and Smith, Chap. I.
Robbins, esp. Chaps. IV, V.
Roll, Part I, Sections 1, 2, 3, 5.
Fraser.

II. (June 27, 28, 29)
Consumer Demand

**Garver & Hansen, pp. 103-110, and Chap. IX.
*Marshall, Book III, Chaps. III, IV, VI.
≠Meyers, Chaps. III, IV.
Benham, op. cit., Appendix on Indifference Curves, pp. 89-98.
Hicks, Value and Capital, Chaps. I, II, III.
Knight, Ethics, pp. 15-60.
Knight, Risk, etc., Chap. III, esp. pp. 58-73.
McIsaac and Smith, Chap. IV, pp. 51-68.
Roll, Part II, Section I.
Boddy, Stigler and Garver, pp. 4-10.

III. (July 1, 2, 3)
Average and Marginal Curves; Types of Market Situations

**Meade, pp. 101-7; “Appendix of the Graphs”, pp. 411-424.
**Meyers, Chap. V.
**McIsaac and Smith, pps. 33-50; 128-31.
McIsaac and Smith, pp. 69-81.
Robinson, Imperfect Competition, Chap. 17.

 

IV. (July 5, 6)
Market Price: Temporary Equilibrium of Demand and Supply under Competitive and “Monopolistic” Conditions.

*Marshall, Book V, Chap. II.
≠Meyers, Chap. VI, pp. 63-75, and Chap. VII.
Davenport, Chap. V.
Garver & Hansen, Chap. VIII, pp. 110-125; 128-131.
Knight, “Cost of Production”, Sections I, II.

 

V: (July 8, 9, 10, 11, 12, 15, 16)
“Normal” Price: The Time Analysis; Costs of Production; The Economics of the Firm; “Normal” Equilibrium Under Competitive Conditions

**Marshall, Book V, Chaps. III, V.
**Meyers, Chap. VIII.
*Knight, “Cost of Production—“, Sections I-IV inc
*Robinson, Imperfect Competition, pp. 92-97.
Boddy et al, pp. 11-18; 19-23.
Chamberlin, Chap. II.
Garver and Hansen, Chap. X, esp. pp. 160-167.
Henderson, Chap. X.
Hicks, Value and Capital, Chaps. IV, V, VI.
Knight, Risk, etc., Chap. III.
Marshall, Book V, Chap. IV.
Meade, Part II, Chap I, pp. 107-116.
McIsaac and Smith, pp. 85-110; 114-27; 163-78.
Taussig, Vol. I, Chaps. 12-16.
Viner, “Cost Curves and Supply Curves”.

First Examination, Wenesday, July 17.

VI. (July 18, 19, 22, 23, 24)
“Normal Equilibrium Under Monopolistic Conditions; Competitive vs. Monopolistic Conditions and Economic Welfare

**Meade, Part II, Chaps. II, III, VI.
**Meyers, Chaps. IX.
Chamberlin, Chaps. IV, V.
Dennison and Galbraith, Chaps. I-VI.
Garver and Hansen, Chap. XII, XIII.
Harrod.
Marshall, Book V, Chap. XIV.
Meade, Part II, Chaps. VII, VIII.
McIsaac and Smith, pp. 128-62; 178-86.
Pigou.
Robinson, Imperfect Competition, Chaps. 3, 11, 13.
Taussig, Vol. I, Chaps. 17, 18.
Meyers, Chap. X.

VII. (July 25, 26, 29, 30, 31, August 1)
The Theory of Distribution: General Principles, Competitive and Monopolistic

**Meade, Part II, Chap. V.
**Meade, Part III, Chap. I.
*Chamberlin, Chap. VIII. (3rd edition).
*Marshall, Book V, Chap. VI.
≠Meyers, Chap. XI.
McIsaac and Smith, pp. 248-59.
McIsaac and Smith, Chap. X.
Henderson, Chap. V.
Hicks, Value and Capital, Chaps. VII, VIII.
Robinson, Imperfect Competition, Chaps. 20, 21, 22, 27.

 

Final Exam for Six Weeks Students, Second Exam for Eight Weeks Students: August 2.

 

VIII. (August 5, 6)
Rent

**Marshall, pp. 415-424.
*Holland.
*Robinson, Imperfect Competition, Chap. 8, sections 1-7 inclusive.
≠Garver and Hansen, Chap. XXV.
Henderson, Chap. VI.
Marshall, Book V, Chaps. VIII, IX, X; Book VI, Chap. IX.
Meyers, Chap. XIV.
McIsaac and Smith, pp. 278-94.

 

IX. (August 7, 8, 9)
Wages

*Dobb, pp. 70-108.
*Marshall, Book VI, Chap. III, IV, V.
≠Meyers, Chap. XII.
≠Marshall, Book VI, pp. 559-73.
Garver and Hansen, Chap. XXVI.
Hicks, J. R., Theory of Wages, esp. pp. 8ff.
Meade, Part IV, Chap. II.
Robinson, Imperfect Competition, Chaps. 25, 26.
Robertson.

 

X. (August 12 13)
Profits

**Meyers, Chap. XV.
*Knight, Article on “Profit” in Encyclopedia S.S.
Knight, Risk, etc., esp. pp. 22-48; 264-90.
Garver and Hansen, Chap. XXVII.
Marshall, Book VI, Chap. VII.
McIsaac and Smith, Chap. XIV, pp. 344-57; 374-8.

 

XI. (August 14, 15)
Interest

**Meyers, Chaps. XIII, XVI.
**Robinson, Introduction, Chaps. VIII, IX.
*Keynes, J. M., Chaps. 13, 14.
Hicks, Value and Capital, Chaps. XI, XII, XIII.
Lerner.
McIsaac and Smith, Chaps. XII, XIII.
Meade, Part I, Chaps. II, III.
Meade, Part IV, Chap. III.
Marshall, Book VI, Chap. VI.

 

Final Examination for Eight Weeks Students: Friday, August 16.

 

Bibliography

Frederic Benham. Economics, especially Appendix to Chap. VI, “Indifference Curves”, pp. 89-100.
F.M. Boddy, G. J. Stiger and F. B. Garver. Materials for Advanced General Economics.
E. Chamberlin. Theory of Monopolistic Competition (3rd edition).
H. J. Davenport. Economics of Enterprise.
H. S. Dennison & J. K. Galbraith. Modern Competition and Business Policy.
Maurice Dobb. Wages.
L. M. Fraser. Economic Thought and Language.
Garver and Hansen. Principles of Economics (1937 edition).
Lewis Haney. Value and Distribution.
R. F. Harrod. “Doctrines of Imperfect Competition”, Quarterly Journal of Economics, 1934, pp. 442 ff.
H. D. Henderson. Supply and Demand.
J. R. Hicks. Theory of Wages.
J. R. Hicks. Value and Capital.
M. Tappan Holland. “Marshall on Rent”, Economic Journal, Sept. 1930, pp. 369-383.
J. M. Keynes. General Theory of Employment, Interest and Money.
J. Neville Keynes. Scope and Method of Political Economy.
W. H. Kiekhofer. Economic Principles, Problems and Policies.
F. H. Knight. Article entitled “Cost of Production and Price Over Long and Short Periods” in Ethics of Competition (pp. 186-216) or in Journal of Political Economy for 1921 (pp. 304-35).
F. H. Knight. Article on Profit in Encyclopedia of the Social Sciences.
F. H. Knight. Risk, Uncertainty and Profit.
A. P. Lerner. “Alternative Formulations of the Theory of Interest”, Economic Journal, June 1938. (pp. 211-30)
Alfred Marshall. Principles of Economics (5th to 8th eds.)
Albert L. Meyers. Elements of Modern Economics.
J. E. Meade & C. J. Hitch. Introduction to Economic Analysis and Policy (American Edition, 1938).
McIsaac and Smith. Introduction to Economic Analysis.
A. C. Pigou, Economics of Welfare.
D. H. Robertson. “Wage Grumbles” and “Economic Incentive” in Economic Fragments.
Joan Robinson. Economics of Imperfect Competition.
Joan Robinson. Introduction to the Thoery of Employment.
Lionel Robbins. Nature and Significance of Economic Science.
Erich Roll. Elements of Economic Theory.
F. W. Taussig. Principles of Economics (Fourth Edition, 1939).
Jacob Viner. Article on “Cost” in Encyclopedia of the Social Sciences.
Jacob Viner. “Cost Curves and Supply Curves”, Zeitschrift für National-Ökonomie, 1932, (pp. 23-46). The Article is in English.

 

Source: Hoover Institution Archives. Papers of Milton Friedman. Box 81, Folder 10 “Economics Miscellaneous”.

 

Image Source: Detail from a photograph in Wisconsin State Journal (May 6, 1948) at the Wisconsin Historical Society.

 

Categories
Economists Harvard Syllabus Undergraduate

Harvard. Sweezy and Stolper’s Outline for a “good Text”. 1940

 

 

Three handwritten pages of notes taken by Wolfgang Stolper sometime late in 1940 from what appears to have been a brain-storming session with his buddy Paul Sweezy were important enough to Stolper to have been saved by him in a folder filled with economics honors exams and course syllabi from his early years at Swarthmore.

Anyone who has taught an introductory economics course has probably drawn up a rough outline of one’s own ideal course. Stolper actually attached a handwritten title page that was stapled to the three pages “Outline for a good Ec A course or good Text”. I think there is a note of irony in this description, but maybe not, there really was not an abundance of good modern texts of economics at the time. Paul Samuelson’s own text Economics was only published in 1948.

The significance of the outline is to have a glimpse at what other young Harvard economists around Samuelson were thinking at that critical juncture in modern economics.

Note.  I have highlighted my conjectures for the very few illegibilities/ambiguities in the text.

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Outline for a good Ec A course or good Text.
by Paul M. Sweezy and W. F. Stolper
about Nov. or Dec. 1940

  1. Nat[tional] Income
    1. explanation of what it is
    2. how received
    3. how spent
      poverty even of U.S.
    4. difference betw[een] inc[ome] prod[uced] & paid out.
  2. Conditions of Equil[ibrium]
    1. Full employment
    2. Savings & investment
      period analysis
  3. Secular Trends in investment
    1. Industr[ial] Revol[ution] today
    2. Kondratieff waves
    3. cycle
  4. Capital Formation
    Rel[ation] betw[een] investment & Nat[ional] income
    Hoarding & dishoarding
    Variation in effective Dem[and]
    Credit creation
    Fed[eral] Reserve System
    “Say’s Law”
  5. Full employment & Fiscal Policy
    thorough awareness of (8a)
  6. Assuming Full Employment
    how should factors of prod[uction] be allocated most effectively
    perf[ect] compet[ition] & rel[ative] optimum
    MP conditions
  7. Modifications of compet[ition]
  8. Corpor[ations] & unions, how effect terms of the foregoing analysis
    1. level of ec[onomic] activity
    2. the effectiveness of ec[onomic] activity
  9. The interrelationship of markets
    Interrel[ationship] betw[een] nat[ional] inc[ome] & for[eign] trade
    allocation of resources betw[een] agr[iculture] & ind[ustry]
    bal[ance] of payments, & rel[ationship] of monetary systems for trade multipliers
    cap[ital] movementsState activity designed to modify & improve working of the system

    1. Fiscal Policy & distrib[ution] of income
    2. Publ[ic] utilities, R[ail]R[oad] rates
    3. antitrust & monop[oly] regul[ation] Gov[ernment] Corp[orations,] TVA etc.
  10. [Welfare economics]
    Criteria for overall planning

    1. to increase level of activity
    2. to increase welfare
      1. meanings of welfare
      2. Taxation problems:
        shifting of taxes
        stimulating taxes
  11. Alternat[ive] Ec[onomic] Systems—Overall Planning
    State Cap[italism]—Socialism—Fascism
    Feudalism

 

 

Source: Duke University, Rubenstein Library. Papers of Wolfgang F. Stolper, 1892-2001, Box 22, Folder 1.

Image Sources: Paul Sweezy (left) from Harvard Class Album 1942; Wolfgang F. Stolper (right) from  John Simon Guggenheim Memorial Foundation (Fellow, 1947).

 

 

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Courses Harvard Suggested Reading Syllabus

Harvard. Economic Aspects of War Course Organised by Harris, 1940

 

Nine of the Harvard economics faculty pulled together to offer students a course on the Economic Aspects of War in the second semester of the 1939-40 academic year. According to the annual enrollment statistics, 25 students were registered for the course (perhaps there were auditors?). The enrollment jumped to 116 in 1940-41 and then dropped back down to 66 (1941-42) and fell to 34 (1942-43) as the number of concentrators (as well as instructional staff) fell during the course of WWII.

Addition: The final examination for Economics 18b from 1940.

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WAR’S ECONOMIC PHASES STUDIED IN NEW COURSE
Harvard Crimson
December 19, 1939

Will Analyze Changes in Economics Incurred by War, With Emphasis on Present Conflict

Plans for a course on “Economic Aspects of War” to be given in the second semester were revealed yesterday by Seymour E. Harris ’20, associate professor of Economics, following approval by the Faculty Committee on Instruction.

Harris said, “This course will analyze the rapid dislocation of economic variables that occur in war times, and during the transition to peace. War economics is a branch of economics like Industrial Organization or Money and Banking, giving the department a chance to use Economics in the treatment of problems that face the world today.”

Contents of the Course

The course will use the tools of economic analysis, applying them to the present problem. Economics of past wars; market organization, price control and rationing; money and banking in war times; the relation of money and public and private capital markets; and the relation of war to economic fluctuations will be dealt with in the lectures and reading.

Included in the discussion will be a study of the effects of war on international balance of payments, on the distribution of gold and on commercial policy; repercussions on agriculture; methods of finance in the war and post-war periods; effects of war upon the distribution of income and wealth; trade unionism, money and real wages and employment in war times; and, finally, transition to peace.

Harris will be in charge of the course. Professor Harold H. Burbank, Professor William L. Crum, Professor Alvin H. Hansen, Professor Edward S. Mason, Professor Joseph H. Schumpeter, Professor Sumner H. Slichter, Professor John H. Williams, and Paul M. Sweezy ’32, instructor in Economics, will share in the teaching.

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Course Enrollment

[Economics] 18b 2hf. Associate Professor Harris.–Economic Aspects of War.

Total 25: 16 Seniors, 6 Juniors, 2 Sophomores, 1 Other.

Source: Report of the President of Harvard College and Reports of the Departments, 1939-40Harvard University. , p. 99.

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Economics 18b
1939-40

In order to assure more continuity in the course it has seemed expedient to assign virtually all of the following books.

Bresciani-Turoni, The Economics of Inflation (G. Allen & Unwin).

Cannan, E., An Economist’s Protest.

(Not an assignment in any part but is suggested strongly.) The book deals with numerous problems chronologically and hence is not easily apportioned over the various sections of the course.

Clark, J. M., The Cost of the Great War to the American People.

Pigou, A. C., Political Economy of War.

Stamp, J., The Financial Aftermath of the War

 

E.J. = British Economic Journal.
J.R.S. = Journal of the Royal Statistical Society.

Q.J.E. = Quarterly Journal of Economics.

Proceedings = Proceedings of Academy of Political Science.

R.E.S. = Review of Economic Statistics.

 

Week 1 (Feb. 5-9)
INTRODUCTORY.
Professor Harris.

Plan, readings, bibliography; war economics in historical retrospect; peace versus war economics in broad outlines.

Assignment:

Pigou, A. C., Political Economy of War, pp. 1-71.

Important suggestions:

Slichter, S. H., “The Present Nature of the Recovery Problem,” Proceedings, 1940, pp. 2-15.

United States Government, Industrial Mobilization Plan (revision of 1939). Senate Document No. 134.

War Office, Statistics of Military Efforts of British Empire during the Great War 1914-20.

Wolf, F. B. “Economy in War Tim” in the volume War in the Twentieth Century, pp. 363-408.

Other suggestions:

Clapham, J. H., An Economic History of Modern Britain—An Epilogue, pp. 511-554.

Einzig, P., Economic Problems of the Next War (1939).

Higgins, B., “The Economic War since 1918” in the volume War in the Twentieth Century, pp. 135-90.

Manual of Emergency Legislation (G.B.) with four Supplements, 1914-17.

Noyes, A. D., The War Period of American Finance, Chs. I-III, pp. 1-162.

Possony, S. T., Tomorrow’s War, pp. 135-235.

Speier, H., and Kahler, A., War in Our Times, Chs. 4-7, pp. 78-171.

United States Council of National Defense, Reports 1917-8.

War Cabinet, Report of 1918, Cmd. 325 (1919).

Weeks 2-3 (Feb. 12-23)
INDUSTRIAL ORGANIZATION.
Professor Mason and Dr. Sweezy.

Industry in war time. Industrial planning for war. Priorities, rationing and price control. The War Industries Board. Techniques of price fixing with special reference to the iron and steel industries. Present prospects for raw materials, industrial capacity and prices.

Assignment:

Clark, J. M., Costs of the World War, Chs. 19-21, pp. 262-291.

Heckscher, E., Sweden in the World War, Part I, pp. 3-42.

Keynes, J. M., “Policy of Government Storage of Foodstuffs and Raw Materials,” E.J., 1938, pp. 449-460.

Mason, E. S., “the Impact of the War on American Commodity Prices,” R.E.S., November, 1939.

Pigou, A. C., Political Economy of War, pp. 112-160.

Taussig, F. W., “Price Fixing as Seen by a Price Fixer,” Q.J.E., Vol. 33, p. 205.

Important suggestions:

Baruch, B., American Industry in the War (1921).

Beveridge, W., British Food Control (1928).

Report of War Industries Board, American Industry in the War (1921).

Other suggestions:

Birkett, M. S., “Iron and Steel Trade during War,” R.S.J., 1920.

Clarkson, G.B., Industrial America in the World War.

Clynes, J. R., “Food Control in War and Peace,” E.J., 1920, pp. 147-155.

Cunningham, W. J., “Railroads under Governemnt Operation,” Q.J.E., Vol. 36, pp. 188 et seq. and Vol. 36, pp. 30 et seq.

Day, E. E., “The American Merchant Fleet,” Q.J.E., Vol. 34, pp. 567 et seq.

Emeny, B., The Strategy of Raw Materials.

Final Report of the Chairman of the United States War Industries Board. (Feb. 1919), pp. 1-111.

Fontaine, A., French Industry during the War.

Great Britain Select Committee on High Prices and Profits, Special Report and Evidence (1917).

Great Britain Departmental Committee on Prices, Interim Report on Committee Appointed to Investigate Prices, Cmd. 8358, Cmd. 8483 (1917-18).

Hines, W. D., War History of American Railroads.

Litman, S., Prices and Price Control in Great Britain during the Great War.

Lloyd, E. M. H., Experiments in State Control.

Mitchell, W. C., Prices and Reconstruction (1920).

Morse, L. K., “The Price Fixing of Copper,” Q.J.E., Vol. 33, pp. 71 et seq.

Nolde, Russia in the Economic War.

Noyes, A. D., The War Period of American Finance, Ch. V (Mobilisation of American Industry), pp. 215-78.

Staley, E., Raw Materials in Peace and War (Council on Foreign Relations 1937).

Surface, M., Grain Trade during War (1921).

Scott, W. R., and Cunnison, J., The Industries of the Clyde Valley during the War.

War Industries Board, History of Prices during the War, W. C. Mitchell.

War Industries Board, International Price Comparisons, W. C. Mitchell.

War Trade Board, Government Control over Prices, P. W. Garrett.

Zagorsky, State Control of Industry in Russia during the War.

Zimmern, D., “The Wool Trade in War Times,” E. J., 1918, pp. 7-29.

Weeks 4-5 (Feb. 26-Mar. 8)
MONEY AND BANKING IN WAR TIMES.
Professors Williams and Hansen.

Objectives of monetary policy; weapons (including rationing); inflationary tendencies; relations of money and private and public capital markets.

Assignment:

Bresciani-Turoni, Economics of Inflation, Chs. 2 and 4, pp. 41-120, 145-182; VI, pp. 224-252.

Important suggestions:

Final Report, Committee on Currency and Foreign Exchange, (Cunliffe), (1919).

Hawtrey, Monetary Reconstruction.

Heckscher, Sweden in the World War, Part III (Monetary History), pp. 129-266.

Other suggestions:

Cannan, E., The Paper Pound of 1797-1821.

Cassel, G., Money and Foreign Exchanges after 1914, pp. 1-62.

Dulles, E. L., The French Franc 1914-28.

Edie, L. D., “The Influence of War on Prices,” Proceedings, 1940, pp. 34-46.

Edgeworth, Currency and Finance in Times of War.

Foxwell, H. S., Papers on Current Finance (1919), pp. 34-68.

Graham, F., and Whittlesey, R., Golden Avalanche.

Indian Exchange and Currency Commission, Report, Evidence and Appendices, Cmd. 527-9 (1920).

Rogers, J. H., Process of Inflation in France 1914-27, Ch. 1-4, 6-8.

Week 6 (Mar. 11-15)
RELATION OF WAR TO ECONOMIC FLUCTUATIONS.
Professor Schumpeter

Effects on consumption and investment demand; innovations; costs; employment, etc.

Assignment:

Bresciani-Turoni, Economics of Inflation, Chs. V, pp. 183-223; VII, pp. 253-281.

Important suggestions:

Clay, H., The Post-War Unemployment Problem, Ch. 1, pp. 1-24.

Other suggestions:

Graham, F. D., Exchange Prices and Production in Hyper-Inflation Germany. Part IV (Effects on German Economy), pp. 241-328.

Mills, F., Economic Tendencies in the United States, Ch. V., pp. 186-241.

 

Week 7 (Mar. 18-22)
EFFECTS ON INTERNATIONAL TRADE.
Professor Harris

Balance of payments and gold; exchange policy; commercial policy.

Assignment:

Bresciani-Turoni, Economics of Inflation, Chs. 1, pp. 23-41; 3, pp. 120-145.

Bullock, Williams, and Tucker, “Balance of Trade during the War,” in Taussig, Readings in International Trade, pp. 198-206.

Harris, S. E., “Gold and the National Economy,” R.E.S., February, 1940.

Hawtrey, R.G., Monetary Reconstruction, pp. 12-22.

Pigou, A. C., Political Economy of War, pp. 161-89.

Important suggestions:

Einzig, P., “The Unofficial Market in Sterling,” E.J., 1939, pp. 670-77.

Keynes, J. M., Tract on Monetary Reform, Chs. III, IV, pp. 81-192.

Other suggestions:

Bergendal, Sweden in the World War: Trade and Shipping Policy, pp. 43-128.

Cassel, G., Money and Foreign Exchanges, pp. 63-100, 137-186.

Dulles, E. L., The French Franc, 1914-28, Ch. 8, pp. 322-361.

Ellix, H., German Monetary Theory, Part III.

Graham, F., Exchanges, Prices, etc. in Germany, Parts II-III, pp. 97-241.

Holden, G., “Rationing and Exchange Control in British War Finance,” Q.J.E., February, 1940.

Loans to Foreign Governments, Senate Document No. 86 (1921).

Reparations and Inter-Allied Debt. Cmd. 1812 (1923).

 

EFFECTS ON AGRICULTURE.
Professor Harris.

Supply, demand, prices, etc.

Assignment:

Clark, J. M., The Costs of the War, Ch. 15, pp. 227-35.

Important suggestions:

Black, J. D., “The Effect of the War on Agriculture,” Proceedings, 1940, pp. 54-60.

Other suggestions:

Bernhardt, J., “Government Control of Sugar during the War,” Q.J.E., Vol. 33, pp. 672 et seq; “Transition of Control of Sugar to Competitive Conditions,” ibid., Vol. 34, pp. 720 et seq.

Eldred, W., “the Wheat and Flour Trade under Food Administration,” Q.J.E., Vol. 33, pp. 1 et seq.

Hibbard, B. H., Effects of the Great War upon Agriculture in the United States and Great Britain.

Reconstruction Committee, Agricultural Policy, Cmd. 9079, (1918).

Royal Commission on Wheat Supplies, First Report, Cmd. 1544 (1921).

 

Weeks 8-9 (Mar. 25-29)
PUBLIC FINANCE.
Professor Burbank.

Methods of Financing a war: Borrowing vs. taxes; tax policies, distribution of burden; management of public debt.

Assignment:

Bullock, C. J., “Financing the War,” Q.J.E., Vol. 31, pp. 357 et seq.

Clark, J. M., The Costs of the World War to the American People, Chs. 5-8, pp. 69-118.

Keynes, J. M., “The Income and Fiscal Potential of Great Britain,” E.J., 1939, pp. 626-35.

Pigou, A. C., Political Economy of War, pp. 71-112.

Important suggestions:

Clapham, J. H., “Loans and Subsidies in Times of War, 1793-1914,” E.J., 1917, pp. 493-501.

Edgeworth, Currency and Finance in Time of War.

Foxwell, H. S., Papers on Current Finance, pp. 1-33.

Great Britain Select Committee on National Expenditures, Reports 1917-22, Present and Pre-War Expenditures, Cmd. 802 (1920).

Keynes, J. M., Monetary Reform, Ch. II, pp. 46-81.

Keynes, J. M., Essays in Persuasion, Part I, pp. 3-76.

“Report of Committee on War Finance of the American Economic Association, A.E.R., Supplement, 1919, pp. 1-128.

Other suggestions:

Bogart, E. L., Direct and Indirect Costs of the Great World War (1919).

Fraser, Sir D., “The Maturing Debt,” R.S.J., 1921.

Jeze, G., and Truchy, H., The War Finance of France.

Mallet and George, British Budgets 1913-21.

May, G. O., “Economic Effects of Tax Policy in Peace and War,” Proceedings, 1940, pp. 61-68.

Moulton and Pasvolsky, World War Debt Settlements, pp. 1-425.

Noyes, A.D., The War Period of American Finance, Ch. IV, pp. 162-214.

Rogers, J. H., The Process of Inflation in France, Ch. V., pp. 48-88.

Silberling, N. J., “Financial and Monetary Policy of Great Britain during Napoleonic Wars,” Q.J.E., Vol. 38, pp. 214 et seq., 397 et seq.

Speier, H., and Kahler, A., War in Our Times, Chs. 8-11, pp. 171-245.

Sprague, O. M. W., “Conscription of Income,” E.J., 1917, pp. 1-25.

Stamp, J., Taxation during the War.

Warren, R., “War Financing and Its Economic Effects,” Proceedings, 1940, pp. 69-76.

 

EFFECTS OF WAR ON DISTRIBUTION OF INCOME AND WEALTH
Professor Crum

Assignment: Read two of the following:

Allen, J. E., “Some Changes in Distribution of National Income during War,” R.S.J., 1920.

Clark, J. M., The Costs of the Great War to the American People, Chs. 10-12, pp. 150-80.

Ezekiel, M., “An Annual Estimate of Savings by Individuals,” R.E.S., 1937, pp. 178-191.

Keynes, J. M., Tract on Monetary Reform, Chs. 1 (Consequences to Society of Changes in Value of Money), pp. 3-45.

Samuel, H., “Taxation of Various Classes of People,” R.S.J., 1919.

Select Committee on Increase of Wealth, Proceedings, Evidence, Appendices, H.C. 102 (1920).

Important suggestions:

Mitchell, W., C., Income in the United States (1921).

Other suggestions:

Bowley, A. L., “Measurement of Changes in Cost of Living,” R.S.J., 1919.

Leven, M., Moulton, and Warburton, America’s Capacity to Consume (1934), Chs. I-IX.

Stamp, J., Wealth and Taxable Capacity, pp. 1-191.

 

Week 10 (April 15-18)
EFFECTS ON LABOR.
Professor Slichter.

Trade unionism; money and real wages and employment.

Assignment:

International Labour Review, November 1939: Articles on “Labour in War Times,” pp. 589-615, 654-687.

Monthly Labour Review, October, 1939: “American Labour in World War,” pp. 785-95.

Slichter, S. H., Economic Factors Affecting Industrial Relations Policy in War Period (Industrial Relations Counselors), 32 pp.

Robinson, E. A. G., “Wage Policy in War Time,” E.J., 1939, pp. 640-55.

Important suggestions:

Cannan, E., “Industrial Unreset,” E.J., 1917, pp. 453-70.

Makower, H., and Robinson, H. W., “Labour Potential in War-Time,” E. J., 1939, pp. 656-662.

Other suggestions:

Bowley, Arthur L., Prices and Wages in the United Kingdom (Oxford, 1921).

Cole, G. D. H., Trade Unionism and Munitions.

Cole, G. D. H., Self-Government in Industry (1918).

Douglas, P., Real Wages in the United States (selected parts).

Gompers, Samuel, American Labor and the War (1919).

Hammond, M. B., British Labor Conditions and Legislation during the War (1919).

Hanna, Hugh S., and Lauck, W. Jett, Wages and the War (1918).

Industrial Unrese, Cmd. 8696 (1917-18).

Kirkaldy, A. N., ed., British Association for Advancement of Science: Labour, Finance and War (1917).

Lescohier, Don D. The Labor Market (1919), Part II.

Lorwin, Lewis L., The American Federation of Labor, Part III.

National Industrial Conference Board, Changes in Wages, September, 1914 to March, 1920.

National Industrial Conference Board, Problems of Labor and Industry in Great Britain, France and Italy (1919).

Proceedings, 1918-1920, “War Labor Policies and Reconstruction,” pp. 139-358.

Speier, H., and Kahler, A., War in Our Times, Ch. 12, pp. 245-269.

United States Council of National Defense, An Analysis of the High Cost of Living Problem.

United States Council of National Defense, Shortage of Skilled Mechanics (1918).

United States Department of Labor, Bulletins No. 244 and 257. Labor Legislation of 1917 and 1918.

United States Department of Labor, History of the Shipbuilding Labor Adjustment Board, 1917 to 1919.

United States Department of Labor, Reports 1918-1921.

United States Department of Labor, The New Position of Women in American Industry (1920).

United States Department of Labor, Industrial Efficiency and Fatigue in British Munition Factories.

United States Railroad Administration, Report of the Railroad Wage Commission.

Watkins, Gordon S., Labor Problems and Labor Administration in the United States during the World War (1919).

Webb, Sidney, The Restoration of Trade Union Conditions (B. W. Huebsch, 1917).

Wolman, L., Ebb and Flow of Trade Unionism, Chs. 2-3, pp. 15-32.

Wolman, L., Growth of American Trade Unions 1880-1923, Chs. 3-4, pp. 67-97.

 

Weeks 11-12 (April 22-)
TRANSITION TO PEACE (an attempt at integration).
Professor Harris.

Problems of costs, prices, money, international trade, public debt and taxation, wages, employment and output, agriculture and the distribution of the burden.

Assignment:

Bresciani-Turoni, The Economics of Inflation, Ch. X (Stabilization Crisis), pp. 359-98.

Clapham, J. H., “Europe after the Great Wars, 1816-1920”, E. J., 1920, pp. 423-36.

Pigou, A. C., Political Economy of War, pp. 161-182, 189-238.

Stamp, J., Financial Aftermath of War, Chs. I-III, V, pp. 9-88, 117-37.

Important suggestions:

Committee on National Debt and Taxation (Colwyn) Report.

Hawtrey, R. G., Monetary Reconstruction, pp. 55-91, 122-175.

Keynes, J. M., Economic Consequences of Peace.

Report of Committee on National Debt and Taxation, pp. 233-246 (Burden of Debt), 246-297 (Capital Levy), 297-351 (Taxes and Debt Redemption)

Scott, W. R., Economic Problems of Peace after War. Second Series.

Other suggestions:

Bonn, M. J., Stabilisation of Mark (1922).

League of Nations, Austria Financial Reconstruction, Summary Report 1926.

Macrosty, H. W., “Inflation and Deflation in the United States and United Kingdom 1919-23,” R. S. J., 1927.

Moulton and Pasovolvsky, World War Debt Settlements (Brookings).

Snowden, P., Labour and national Finance.

Stamp, J., Current Problems I Finance and Government, Ch. XI (The Capital Levy), pp. 227-71.

 

READING PERIOD.
Read one of the following:

Committee on National Debt and Taxation (Colwyn) Report.

Graham, F., Exchanges, Prices, etc. in Germany.

Hawtrey, Monetary Reconstruction.

Keynes, Economic Consequences of Peace.

Mitchell, W., Income in the United States (1921).

Moulton and Pasvolvsky. World War Debt Settlements.

Rogers, Process of Inflation in France, 1914-27.

Scott, W. R., Economic Problems of Peace after War, Second Series.

Speier, H., and Kahler, A., War in Our Times.

Stamp, J., Wealth and Taxable Capacity.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1 Box 2, Folder “Economics, 1939-40 (1 of 2)”.

Image Source: Seymour E. Harris from Harvard Class Album 1942.

Categories
Chicago Courses Problem Sets Suggested Reading Syllabus

Chicago. Intermediate Economic Theory for Non-Majors, ca. 1933

Element from Social Science Research Bldg at U of Chicago

 

 

Today’s post is provides an undated reading list, a partial course outline and the preliminary motivating statement for an intermediate level undergraduate course in economic theory targeted to non-majors in the University of Chicago’s Division of Social Sciences. This material was found in a folder in George Stigler’s papers. He was a student at the University of Chicago from 1933-1936, but it is unlikely that he took this course. One presumes he acquired a copy on his own account then. As far as the authorship, I have not had time to compare this material with that of Henry C. Simons cited in the following bibliographic tip. However the style does appear to have Simons’ handwriting all over it. Kyrk and Mints also regularly taught this course during these years.

Bibliographic Tip:  Notes to Henry Calvert Simons’ Course Economics 201 (1933-34) taken by F. Taylor Ostrander and Helen Hiett were published in Research in the History of Economic Thought and Methodology. Volume 23, Part 2. Documents from F. Taylor Ostrander, Warren J. Samuels (ed.). Emerald, 2005.

_____________________

Course Description

201. The Divisional Course in Economics.—A survey of price and distribution, monetary, and cycle theory, developed chiefly through the use of a series of problems. The course is designed primarily to meet the needs of students who are majoring in departments other than Economics and who expect to take the Divsional Comprehensive Examination in Social Science. Prerequisite: Social Science I and II or equivalent, or consent of instructor.

Source: University of Chicago. Announcements, Arts, Literature and Science (for the sessions 1933-34), vol. XXXIII, March 25, 1933, No. 8, p. 265.

_____________________

ECONOMICS 201
MATERIALS AND PROBLEMS FOR CLASS DISCUSSION

ASSIGNMENTS

Indispensable Reading, first five weeks:

Henderson, H. D., Supply and Demand (New York: Harcourt, Brace and Co., 1922. $1.25).

This short treatise should provide a good review of previous work (it is among the materials for Social Science I). It should be read promptly, to renew acquaintance with the terminology and central propositions of economic theory; and the relevant chapters should be re-read later on, in connection with the class discussion of special topics.

Knight, F. H., in Syllabus and Selected Readings for Social Science II, pages 125-250.

This is also a review assignment; but no other material is likely to prove more valuable in connection with the first part of this course.

The first section (pages 125-137), on “Social Economic Organization and Its Five Primary Functions,” should be read promptly, in connection with the class discussion of the first week.

Ely, R. T. et al., Outlines of Economics, 5th ed. (New York, 1930), Chapters IX, X, XI, XX, and Appendix A. (The corresponding chapters in the 4th edition will serve equally well for this course.)

The first three of these chapters should be read as one assignment. The first part of Chapter XI deals with what are, from the point of view of this course, highly controversial questions. Chapter XX merits very careful study.

Gray, Alexander, The Development of Economic Doctrine (New York, 1931), Chapters III, V, and VI.

The chapters should acquaint students with the main ideas of the mercantilists, and of Hume, Adam Smith, Malthus, and Ricardo. Appendix A of the Ely book should be read in connection with this assignment.

Indispensable Reading, last five weeks:

Roberson, D. H., Money, new edition revised (new York: Harcourt, Brace and Co., 1929. $1.25).

This is an excellent, concise treatise by a leading English (Cambridge) economist. It should be studied with care, preferably in advance of class discussion of money and banking.

Ely, R. T. et al., Outlines of Economics, 5th ed., Chapters XIII to XVIII inclusive.

These chapters also merit careful, deliberate study.

Gregory, T. E., The Gold Standard and its Future, 2nd (or 1st) ed., London (and New York), 1932.

An unusually fine treatise, excellent for its fundamental analysis, and closely relevant to currently interesting and urgent problems.

Optional Reading:

Ely, R. T. et al., Outlines of Economics.

Gray, Alexander, The Development of Economic Doctrine.

Cassel, Gustav, Fundamental Thoughts on Economics.

Cassel, Gustav, The Theory of Social Economy (Barron translation), Book I and Book II.

Marshall, Alfred, Principles of Economics, 8th edition, especially Book V.

Hardy, Charles O., Credit Policies of the Federal Reserve System.

 

Preliminary

Economics 201: Its Place in the Curriculum:

This course is intended primarily for students preparing for the Divisional Examinations, and not for students majoring in the Department of Economics. It is designed for students who have had Social Science I and Social Science II in the College, and for those students transferring to the Social Science Division from other colleges who have had some previous work in economics. In general, the course will presuppose some familiarity with the terminology of economics and some ability to follow careful analysis.

General Description of Content of the Course:

The course falls, as to subject matter, into two main parts. The first six weeks will be devoted to study of “price theory”—to study of the forces governing, in an exchange economy, the determination of relative prices and the allocation of resources among different, alternative uses (assuming a money economy but disregarding, or abstracting from, monetary disturbances and cyclical fluctuations). This part of the course is designed to give students a critical understanding, first and above all, of how a competitive system works and, second, of how the introduction of monopoly in particular areas will affect relative prices and relative production. The latter part of the course will be devoted to study of money, banking, and business cycles—to study of factors governing the general level of prices and, more especially, to analysis of forces underlying the cumulative, self-aggravating maladjustments of booms and depressions.

The total quantity of required reading is intended to be moderate; and it is to be hoped that students will do this relatively small amount of reading with considerable care — with serious effort to comprehend thoroughly and to understand, rather than with the intention of accumulating information or memorizing propositions. If a student must choose between doing all the reading but doing it hastily, and doing a smaller amount with care, the latter procedure will prove decidedly more profitable. The assignments are designed, however, to eliminate the necessity of such a choice.

Most of the class hours will be devoted to discussion of specific problem-exercises designed to bring out, and to give precision to, the central concepts and propositions of price theory and monetary theory. Little effort will be made to relate the class discussions from day to day to particular parts of the assignments; but familiarity with the required readings will always be helpful, and sometimes indispensable, to understanding of problems dealt with in class.

A considerable part of the student’s outside work should be devoted to assimilating and organizing in his own mind the content of discussions in class. Students should make a special effort to acquire facility with the language of more rigorous economics — with the main terms and concepts —, to understand clearly the assumptions under which particular analytical arguments proceed, to digest the analysis of particular problems as it proceeds in class, and to prepare themselves to carry on the discussion from day to day. Above all, they should try to discover at what points the content of class discussions has been unclear; and they should feel not only free, but actually obligated, to raise questions in class to clear up any confusion. If any individual feels hesitant about asking questions, let him remember that one can hardly raise a question about systematic economic argument which is so simple that most other students will not profit from its discussion.

Students are certain to find this course a more profitable and stimulating intellectual experience if they do their work, at least occasionally, with other students. This is especially true with reference to study of the various problem-exercises. Students can gain a great deal, by way of understanding, if they try to explain things to each other, if they criticize other people’s explanations, and if they attempt to argue out of differences of opinion. It is hard to develop real facility with definitions, concepts, and propositions merely by reading — or by talking to one’s self.

 

Headings from Course Outline
(63 pages)

INTRODUCTION

Definition of Economics and of Its Point of View

Basic Functions or Tasks in an Economic System or Organization

GENERAL PRICE THEORY

[Introduction]

General View of the Pricing Process

The Phenomenon of Industrial Fluctuations and Unemployment, digression

Circularity of the Pricing Process

The Pricing Process: EQUILIBRIUM

The Pricing Process for a Short Period

Conditions of Equilibrium

The Pricing Process over Long Periods

Some Conditions of Long-run Equilibrium

Some Interpretations of the Equilibrium Arrangements

Complexity and Intricacy of the Inter-relations

Some Supplementary Remarks

DEMAND, DEMAND FUNCTIONS, AND ELASTICITY OF DEMAND

Confusion as to Usage of the Word “Demand”

Utility, Utility Functions, and Demand Functions

Elasticity of Demand

COST OF PRODUTION AND PRICE UNDER COMPETITIVE CONDITIONS

Problem Exercise I

Preliminary Exercises
Conditions of Equilibrium in the Industry
Conditions of Demand

[missing pages 40-53]

MONOPOLY AND MONOPOLY PRICE

Contrasts between Complete Monopoly and Perfect Competition

Production and Prices under a special case of Partial Monopoly, “The Economics of Cartels”

An Arithmetic Exercise

 

Source:  University of Chicago Archives. George Stigler Papers,  Addenda, Box 24, Folder “Economics 201”.

Image Source:  Architectural element of the Social Science Research Building (1929). University of Chicago Photographic Archive, apf2-07449, Special Collections Research Center, University of Chicago Library.

Categories
Courses Harvard Suggested Reading Syllabus

Harvard. Programs of Social and Economic Reconstruction, Leontief and Taylor. 1942-43

This course on socio-economic reform and revolution was team taught the previous year by Wassily Leontief, Paul Sweezy and Overton Taylor. Sweezy took leave from Harvard to join the War effort so he was unavailable for the 1942-43 version of this course that has been in the Harvard economics course catalogue almost as long as courses in public finance and labor problems.

____________________________

Course Enrollment

[Economics] 115. Associate Professor Leontief and Dr. O. H. Taylor.—Programs of Social and Economic Reconstruction.

Total 10: 3 Graduates, 1 Junior, 1 School of Public Administration, 4 Radcliffe.

 

Source: Harvard University. Report of the President of Harvard College and Reports of the Departments for 1942-43, p. 47.

____________________________

 

Course Assignments

Reading for the Monday Oct. 19 Meeting of Ec 115

Bastiat Frédéric. Harmonies of Political Economy, pp. 1-46, 196-217.

Sismondi, Simond de. Essays on Political Economy, pp. 113-122, 224-244. (Nouveaux Principes d’Economie Politique, Vol. I and II[,] to browse For those who read French)

Gray, John. A Lecture on Human Happiness, pp. 1-72.

Clark, J. B. Distribution of Wealth, pp. 36-76.

Carver. Essays in Social Justice, pp. 232-263.

Keynes, J. M.  The General Theory of Interest and Employment, pp. 372-384.

 

Economics 115
Assignment for October 26

  1. Handbook of Marxism, pp. 313-38.
  2. Capital, Vol. I, Ch. X, Sections 1, 2, 5, 6.
  3. Marx-Engels Selected Correspondence, Letter no. 214.
  4. Lenin, State and Revolution.
  5. J. Laski, The State in Theory and Practice, Ch. 2.

 

Economics 115
November 2, 1942
Social and Economic Theories of the New Deal

  1. Immediate Background
  2. New Deal Movement as a Dynamic Organism of Diverse Potentialities
  3. Specific Analysis of the Program Adopted
  4. Significance of the New Deal
  5. Where did the New Deal Fail?

Assignment

Background for those who need it:

A. M. Schlesinger, New Deal in Action
or
R. H. Jackson, The Struggle for Judicial Supremacy

For everyone:

Golden and Ruttenberg, The Dynamics of Industrial Democracy, pp. 317-42.
Robert and Helen Lynd, Middletown in Transition, Chs. IV, XII.
C. A. Beard, Economic Interpretation of the Constitution, pp. 149-188.
F. D. Roosevelt, Papers and Addresses, Vol. I, nos. 139, 141; Vol. II, nos. 1, 50, 101; Vol. III, nos. 1, 102; Vol. V, nos. 1, 53, 176.

Also recommended:

Thurman Arnold, Folklore of Capitalism
Thorstein Veblen, Absentee Ownership

 

Economics 115
November 9, 1942
The Revisionist Movement in German Socialism

  1. The beginnings of reformist socialism in Germany
  2. Bernstein and the Revisionist offensive
  3. The counterattack and the split on the Left
  4. The social roots of reformism
  5. German Social-Democracy vs. socialism: 1914, 1919, 1933

Assignment

Eduard Bernstein, Evolutionary Socialism, pp. ix-xviii, 1-94, 165-199
Rosa Luxemburg, Reform or Revolution
M. Philips Price, Germany in Transition, pp. 18-47

 

Economics 115
Assignment for Nov. 16, 1942

CLASSICAL LIBERALISM AND NEO-LIBERALISM
–A Comparison and a Critique—

  1. The historical development of Liberalism.
  2. Common elements in both types of Liberalism.
  3. Political implications of the divergence.
  4. Neo-Liberalism — Will it work?

Assignment:-

J. S. Mill, Principles of Political Economy, Bk. V, ch. 11.
Herbert Spencer, Social Statics (Abridged Edition, D. Appleton & Co., 1892) pp. 55-61, 121-140.
Walter Lippman, The Good Society, chs. 10 and 11.
Henry Simon, Positive Program for Laissez-Faire.
Max Lerner, It is Later Than You Think, Chs. 1 and 6.
J. M. Keynes, The End of Laissez-Faire, pp. 39-54.

Suggestions for those who may wish to go further into the problem:-

John Dewey, Liberalism and Social Action.
Articles “The Rise of Liberalism” and “Individualism and Capitalism” in the Introduction to The Encyclopedia of the Social Sciences.
Thorstein Veblen, “Preconceptions of Economic Science,” in The Place of Science in Modern Civilization.

 

Economics 115
Assignment for November 23, 1942
The Economic Doctrines of the Bolsheviks

  1. The relationship between Marxism and Bolshevism—Marxism restored and militant.
  2. The Bolshevik elaboration of the Marxian theory of capitalist development; its application to the analysis of the period of monopoly capitalism or imperialism.
    1. The transition from free competition to monopoly as a result of the concentration and centralization of capital.
    2. Finance capital and the role of the banks.
    3. The struggle for markets, for raw materials and for outlets for capital export and the resulting tariff and colonial policy of imperialism
    4. The growth of international cartels and the ‘theory’ of ultra-imperialism.
    5. The progressive intensification of the contradictions of capitalism — crises, wars and catastrophe.
    6. The proletarian revolution as the only way out.
  3. The political implications of the Bolshevik analysis of imperialism — the working class must gird itself for a struggle à outrance for the overthrow of world capitalism and the establishment of a socialist order.

Assigned Reading

Lenin: Imperialism.
P. M. Sweezy: The Theory of Capitalist Development, Part IV.

Suggested Reading

Marx-Engels: The Communist Manifesto.
Marx: Value, Price and Profit, Chapter VI to the end.
Lenin: The Proletarian Revolution.

 

Economics 115
The Theory of Marx and Engels Concerning the Transition From Capitalism to Socialism
November 30, 1942

  1. Sources and Constituent Parts of Marxism
  2. Class-Domination Theory of the State
  3. The Overthrow of the Bourgeois State by Revolution
  4. Establishment of Proletarian Dictatorship — First Phase of the Communistic Society
  5. Withering Away of Proletarian State and the Higher Phase of the Communistic Society

Assignment:

Marx, Contribution to the Critique of Political Economy, pp. 9-15.
Burns, A Handbook of Marxism, pp. 537-570.
Engels, The Origin of the Family, Chap. 9.
Lenin, The State and Revolution, Chaps. 1 and 5.
Engels, Socialism, Utopian and Scientific, Chap. 3.
Engels, Landmarks of Scientific Socialism, Chap. 9.
Marx, Critique of the Gotha Program.

Suggested:

Chang, Sherman, The Marxian Theory of the State.

 

Economics 115
January 3, 1943
Socialism In The British Labour Party

  1. A definition of the term Socialism
  2. Necessary reforms arising from frictions of the Industrial Revolution
  3. Socialist gains acquired through self-interest of pressure groups
  4. Growth of the Labour Party
  5. Socialism as a policy of the Labour Party
  6. Socialist administrations
  7. Future of Socialism in England

Assignment

Clifford Allen, Labour’s Future At Stake.
G. D. H. Cole, British Working Class Politics, Epilogue.
Arthur Greenwood, M. P., The Labour Outlook.
J. Ramsy McDonald, A Policy for the Labour Party.

Optional

Arthur Henderson, The Aims of Labour.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 3, Folder “Economics, 1942-43 (2 of 2)”.

Image Source: Leontief and Taylor from Harvard Class Album 1939.

 

 

 

 

Categories
Chicago Courses Exam Questions Suggested Reading Syllabus

Chicago. International Trade and Finance. Jacob Viner, 1933.

 

The first four pages of written notes taken by Milton Friedman for Jacob Viner’s course, International Trade and Finance, provide something of a course syllabus and list of suggested reading assignments. The notes are undated but in his civil service job applications, Friedman provided a list of courses by university, semester or quarter and course instructor. Milton Friedman took Jacob Viner’s course during the Winter quarter (January to mid-March) of 1933. Generally Friedman’s handwriting is easy to read, knowing the context, though some checking of authors’ names was required. I provide one sample from a particulary difficult five or six lines and welcome any alternative readings. Otherwise I am extremely confident in my transcription.

Elsewhere in his files, Milton Friedman had what appears to be a later photocopy of an exam for this course. The folder is labelled “Biographical: Class Exams circa 1932-1938”. “University of Chicago” and “Milton Friedman” are handwritten on the photocopy of the original typed copy of the exam.

Don Patinkin took the same course that was still taught by Viner in 1944: the course outline, readings and some exam questions are available in an earlier post.

_____________________________

International Economic Relations: Course Description

[Economics] 370. International Trade and Finance.—This course deals with the theory of international values, the mechanism of adjustment of international balances, foreign-exchange theory, the international aspects of monetary and banking theory, and tariff theory. Prerequisite: Economics 301 or its equivalent. Winter, Viner.

 

Source: University of Chicago. Announcements. Arts, Literature and Science, vol. XXXII, no. 12 (for the sessions of 1932-33), p. 361.

_____________________________

From Milton Friedman’s Course Notes

✓Mun England’s Treasure Ch. 2, 3, 4, 5, 20, 21

✓Hume Essays Moral & Political. Vol I—Essays (of Commerce/of the Balance of Trade)

✓Viner   Early English Theories. J.P.E. June & Aug, 1930. All of June article. pp. 418-431, 442-448 in Aug. article.

 

Bullionist Controversy

✓Silbering, Fin[ancial] & Mon[etary] Policy [of Great Britain During the Napoleonic Wars] Qu. Jour of Ec 1924

✓Angell ch III & Appendix A

✓Ricardo High Price of Bullion in works also in Gonner. Ricardo’s Essays

✓Viner Canada’s Balance, pp. 191-20[last digit smeared, might be “4”]

J.P.E. Oct 1926 pp. 600-608

✓J.S. Mill Principles Bk III Ch XXIV

✓Walker Money. Ch XIX & XX

Mill Principles Book III, Ch XIX, XX, XXI, XXII

Taussig, International Trade. Ch XVII, XVIII

 

1) Canada’s Balance pp. 202-212, 145-190

Angell pp. 170-174, 505-510

2) Ohlin. Is the Young Plan Feasible? Index Feb 1930

3) Angell-Q.J.E. May 1928

Rogers in Recent Ec. Changes Vol. II, Ch. II
Taussig, Int. Trade 325-332

4) Moulton on War Debts in Schanz Festgabe [Festgabe für Georg von Schanz zum 75 Geburtstag. Tübingen: J. C. B. Mohr. 1928. 2 vols. Papers by Beckerath, Lotz, Jèze, Einaudi, Stamp, Moulton, and others.]

____________________

with respect to 1) find answer:

  1. to what factor does Viner assign & to what factor does Angell says Viner assigns the immediate responsibility for the rise in prices. Also to what fact[or] he assigns it.
  2. What role does Viner assign & what role does Angell say Viner assigns & what role does Angell assign to the expansion of Canadian Bank loans.
  3. What is order of priority acc[ording] to Viner & acc[ording] to Ang[ell] of fluctuation in Canada bank demand liabilites & outside reserves.
  4. (cf. th[eory] by Mill or Tau[ssig]) If outside reserves was held as gold in Canada what role in the mechanism would the classical theory assign to them

 

Comparative Costs

Ricardo-Principles ch 7

Viner Welt-Archiv Oct, 1932

____________________

Manoïslesco Theory of Protection [Reviewed by Viner in JPE, Feb. 1932, pp. 121-125]

Grunzel Joseph. Handbuch der internationalen Handelspolitik (probably)]

Cherbuliez [, Antoine] Précis de la Science E., pp. 375-391

Walras “Théorie du Libre Échange. Revue d’Économique Politique XI (1897) pp. 651-664

or ‘Études d’Éc. Pol. Applique, pp. 286-304 [1898 reprint of previous article].

Pareto-Cours

Angell

Taussig. Int. Trade

Weber, Alfred. “Die Standortslehre und die Handelspolitik Archiv für Sozial. XXXII (1911) 667-688
____________________
Choose one & in about 10 days give appraisal thereof.

J.S. Mill Principles Bk III Ch XVII XVIII

Marshall. Money Credit & Commerce Bk III Ch VI, VII, VIII Appendix J[?] pp. 330-342

Terms of Trade

Taussig: Int. Trade see Index under Barter Terms of Trade.

Yntema Ch. 5.

Wilson Capital Imports, Ch 4.

Depreciated Paper

Taussig, Int. Trade 336-408

Graham Exchange Prices & Prod. in Germany. 97-99; 117-149

Cassel Money & Foreign Exchange after 1914, pp. 137-186

Cassel The Treatment of Price Problems. Ec J. Dec 1928

Ohlin International Trade Relations. Index Aug 1930

Bastable. Theory of Int’l Trade Ch 6.

League of Nations. [Financial Committee] Report of Gold Delegation, 1932 [Official no.: C.502.M.243.1932.II.A]

____________________

Read letter in last issue of Economica of a letter on the true something or other.

 

Source: Hoover Institution. Milton Friedman Papers, Box 120, Bound notes (Economics 370/J. Viner/10 a.m. S.S.B. 107).

_____________________________

Final Exam Questions Winter Quarter 1932-33

Economics 370

  1. Write notes on the following:
    1. “Increasing Returns” and the Comparative Cost Doctrine
    2. The “Law of Reciprocal Demand” and the “Equation of International Exchange.”
    3. The possibilities of partial specialization under free trade.
  1.       a.  Discuss the part played by international shifts in money incomes in adjusting balances of payments to international capital movements.
    b.  Explain briefly the part played in the lending country in connection with the same process by bank deposits and by bank loans.
  2. “The principles governing the rate of exchange may be illustrated by the following mechanical example. Represent two countries by two cisterns, and their stock of legal tender money by water, so that the depth of the water in either cistern may be taken to be the general level of prices in the corresponding country. If water cannot pass from either cistern to the other any divergence of depth may be produced at will by adjusting the respective quantities of water in them. This corresponds to the case of countries with independent currencies. If, however, the water can flow through a pipe leading from the base of one cistern to the base of the other, the depths in the two cisterns will always be identical.”
    Hawtrey, Good and Bad Trade, 1913, pp. 109-110.
    Comment briefly.

 

Source: Hoover Institution. Milton Friedman Papers, Box 115, Folder 13. “Biographical: Class Exams circa 1932-1938”.

Categories
Columbia Exam Questions Suggested Reading Syllabus

Columbia. Foundations of Social Economics. J.M. Clark 1937

 

Working with the papers of John Maurice Clark is not for historians who abhor dirt and disorder. Simply imagine going into an attic and finding the papers of your grandparents dumped shelf by shelf, pile by pile, with or without the social contrivance of filing, and now image the dust of decades has penetrated the recesses of box and folder. And yet there is much interesting stuff for the hardy to be found in the rummage of Clark’s career.

Three items are posted today from J. M. Clark’s course on the foundations of social economics: (i) five pages describing a course project for students to think about an economic constitution for a newly discovered, virgin continent that is 1/10 the scale of the United States which would be colonized by 1/10 of the U.S. population but run as an experiment in economics; (ii) an undated handwritten course bibliography; (iii) an undated typed final examination for the course.

Examination questions for one of the two courses taught back-to-back from a few years earlier can be found in Milton Friedman’s papers.

_________________________________

COURSE DESCRIPTIONS

Economics 109—Foundations of social economics. 3 points Winter Session. Professor J. M. Clark.
M. and W. at 2:10. 401 Fayerweather.

The course pays attention to the nature of man, and of joint organizations which act as economic men; the economic ideal, viewed dynamically; the social meaning of wealth; the institution of exchange; the principles of choice, value, and cost; a functional analysis of production; the basic institutions of control; economic guidance; negotiation and bargaining; the factors of production and the laws of return; the problem of waste.

Economics 110—Dynamics of value and distribution. 3 points Spring Session. Professor J. M. Clark.
M. and W. at 2:10. 401 Fayerweather.

The functions of value and price; the dynamics of supply and demand for commodities and factors of production; the institution of competition; social vs. competitive schemes of distribution; value and expenses of production; expenses and ultimate costs of production; cumulative vs. self-limiting changes; the level of prices; economic rhythms.

 

Source: Columbia University Bulletin of Information, Thirty-seventh series, No. 28 (June 26, 1937). History, Economics, Public Law, and Social Science. Courses offered by the Faculty of Political Science for Winter and Spring Sessions 1937-1938, p. 27.

_________________________________

Typed copy of Course Project, Econ 109
Winter Semester 1937

[handwritten note at top of page
“P.P. [per person?] 2-3 Objectives. 4-5 Strategic decisions.”]

Tentative project for Econ. 109.
(May be used as a carry-over in early meetings of 110 this year—Jan.-Feb., 1938)

Specifications for a new economic system.

A new continent, unoccupied and reproducing the area and resources of the U.S. on a one-tenth scale, has been discovered in the Pacific, and recognized as belonging to the U.S. Recognising that our present economic system is unsatisfactory, the Government has decided to use this area as a laboratory experiment in the setting-up of an altered system, starting from scratch with the advantage of hindsight as to the evils of our present system and trying to improve on them. More than one-tenth of our population, including quotas from all walks of life, have signified their willingness to try the experiment and to cooperate loyally in whatever system is selected. We needn’t take Al Capone [Chicago gangster kingpin] if we don’t want him, but we can have Owen Young [founder of RCA, the Young Plan regarding the reduction of German reparations was his namesake], Henry Dennison [important figure in scientific management movements] and others of like complexion if we want them.

This class has been designated as one of a number of groups to draw up and submit proposals, from which a plan for developing the area will ultimately be selected or otherwise made up. There are other groups concerned with religion, education and political government, and there will be interchange between all the groups before their various proposals are knit together. The political-government group is marking time until it finds what kind of a system it will have to devise a government for. There may be other groups set up on health, penology, family and social relations, art and possibly other matters as developments seem to require them.

[Handwritten title insert] First Strategic decision.

            We shall use modern scientific and technical methods of production. In departing from the pattern of the existing system, we are free to go all the way to the most complete communism, or to move in the other direction and try to set up a system more genuinely individualistic (and presumably more competitive) than the present one, if we think the chief trouble is that it is not individualistic enough.

Desirable ends, formulated as standards, so far as possible.

            “Maximum individual welfare”, including physical and mental health, personalities adjusted to social living, well-rounded exercise of faculties and adequate stimulus thereto, liberty of choice, within limits, barring things demonstrably harmful to individual or society but including choice of occupation, particular forms of recreation and consumption, adequate guidance in the exercise of liberty, possible special stimulation to activities regarded by proper and competent bodies as especially valuable.

More goods, for those who need them most, implying much greater equality of distribution that at present, but not neglecting importance of increasing total. Flat equality, or distribution (of all goods) according to need, debatable. What kinds of goods? Not much more food, not very much more clothing, much more adequate housing, more adequate education, much more adequate health service (but our religious board includes a couple of Christian Scientists!) “More goods” calls for stimuli to efficiency of production in all grades, and liberty to try new processes and new goods. Whole question of bureaucratic morale, of differentiated material rewards varying with performance (or in proportion to commercial worth of superior performance?) of comparative, quasi-competitive or completely competitive tests of performance.

Right to opportunity to work.

Relative stability of rate of production.

Adequate supply of capital to ensure progressive efficiency of production, with future product rationally weighted against present privation.

Rational distribution of family income over time, with balanced provision for old age and emergencies. (This may or may not be tied up with the provision of capital funds, as at present).

National defense, to the extent deemed necessary (We shall assume that it does not call for a totalitarian system.) [Handwritten note: “Can we safely assume that in 1947?]

Strategic decisions.

            Scope of consumers’ preference in deciding what goods and services shall be produced. We shall surely let them decide what color wall-paper and furnishings to have, and beyond certain minimum requirements what books to read and what recreations to follow. We may ration some things—if so, what?—but there will be some realm within which we let them have purchasing power which they are free to use as they choose. This will be our money, and goods will have a price, within this realm.

Shall we also let them choose whether to spend or not to spend? The dangers here are two: fluctuations of total spending (including that on capital formation) and excess saving not spent on capital formation. Unless incomes and the feeling of insecurity fluctuate heavily, the first danger is not great. With large concentrated incomes eliminated, the second danger would be practically removed. Fluctuating credit for busing durable consumers’ goods would create more danger; and for industrial investments, more still. Control of credit can be made effective downward, but not very well upward, even if credit is a public monopoly.

As to public services, I shall assume that we keep the present list, with reservations as to poor-relief if the need is changed or other agencies substituted; and that the question is as to additions. The big question is whether we make the main body of production a public service. If we do, it will be for two main reasons: to control inequality of distribution, and to control the relation between the current volume of production and the spendings (consumer and capital) it depends on to take the goods off the market, to the end that utilized production may be limited only by power and willingness to produce, no fall short of that limit as at present.

If we do that, problems arise of means to secure efficiency from workers and managers, source and allotment of capital and possible place and reward for private savings, determination of production programs and of kinds of goods and services to be produced, including new ones, organization of invention and incentives, determination of wages, of prices, of income devoted to free public series, pensions, etc. procedure concerning workers’ choice of occupation and shifting from one to another, selection of workers and treatment of those nobody wants—that’s enough to start with and to give some idea of the sort of thing that would be encountered. How combat the stagnation of bureaucracy, the multiplication of supervisors, the business of passing the buck and finding scapegoats for poor performance (I assume we shouldn’t want the scapegoats shot)? What sort of “social accounting” shall we use?

If we permit private saving, what shall we do about inheritance, and how prevent evasions of our policy.

We can embody the essentials of our plan in a constitution; how shall we provide for amendment? Shall the whole be in the hands of elected officials? If so, will anyone dare to support an opposition ticket? Will dissatisfied elements believe that a reelection was genuine and fair? Will such factors as these lead the system into a dictatorship of force, even if it did not start that way?

_________________________________

Bibliography for Economics 109
[no date]

Economics 109

Veblen:         “The Place of Science in Modern Civilization”

The Theory of Business Enterprise
The Theory of the Leisure Class
The Instinct of Workmanship.

Davenport, H. J. “Economics of Enterprise”

Anderson, B. M. “Social Value”

Cooley, C. H. : “Social Process”

Hobson, J. A. : “Work & Wealth”.

Pigou, A. C.: “Economics of Welfare” or “Wealth & Welfare”

Tugwell, (ed):  “The Trend of Economics”.

Boucke, O. F.: Critique of Economics”.

Mill, J. S.:      “Principles of Economics”

Essays on “Liberty” and “Utilitarianism”.

Clark, J. B.    “The Philosophy of Wealth”.

“Essentials of Economic Theory”.

Dickinson: Motives in Economic Life

Parker, Carleton: The Casual Laborer.

Wicksteed: “The Common Sense of Pol. Econ.”

Watkins: G. P. “Welfare as an Economic Quantity”.

Hoover Committee “Waste in Industry”

Chase, Stuart: The Tragedy of Waste”.

Clark, J.M.: “Social Control of Business”

“Economics of Overhead Costs”.

Ely: “Property & Contract”.

Commons: “Legal Foundations of Capitalism”.

Sidgwick: Principles of Political Economy.”

Tawney: The Acquisitive Society”

Edie: Principles of the New Economics.”

[Day, Clarence] “This Simian World.”

_________________________________

Economics 109
Final Examination
[undated]

 

Answer two questions, but not more than one of questions 3-8, inclusive.

  1. Discuss effects of recent military techniques on problems of the economic organization of a country.
  2. With respect to equality as a social-economic objective, what does the prevailing American social judgment favor? Note questions of degree of equality or inequality, and questions of different matters in respect of which people may be equal or unequal.
  3. “Individuals allocate expenditures so as to secure equal marginal utilities from money spent for different things, or to put themselves on a basis of indifference as between different expenditures”. Discuss. If true, why and by what psychological process; if not true, suggest amendments in the light of more realistic psychology.
  4. If you were founding a new society, what would you do about consumers’ freedom of choice, and why? If you allow such freedom in important degree, consider how far this commits you to other features of the present economic system.
  5. Discuss the economic importance of the “instinct of workmanship”.
  6. Compare the theory of “balked dispositions” with the tradition utilitarian treatment of the subjective sacrifices of production.
  7. Discuss economic significance of intelligence tests, in the light of the question what kind of a population is suitable or unsuitable to a system of private enterprise, either complete or modified.
  8. Discuss the social productivity of advertising and salesmanship, and compare this problem with the traditional concept of production, as bearing on the social productivity of private enterprise.
  9. Do the same for the social productivity of “bargaining” activities.
  10. Discuss the range of possible kinds of agencies available to perform economic functions.
  11. Would you assume that the attempt to maximize profits (with or without competition) standardizes economic behavior sufficiently to warrant using this assumption as a sufficient basis for deductive theorizing: that is, as furnishing all the basis such theorizing needs to take account of?
  12. Discuss the meaning of supply schedules or demand schedules, taking account of complexities or difficulties involved.

 

Source: Columbia University Libraries. Manuscript Collections. Papers of John M. Clark. Box 24, Unlabeled Folder.

Image Source: Detail from Columbia University group photo of economics department from the early 1930s. Columbia University Libraries. Manuscript Collections. Columbiana, Department of Economics Collection, Box 9, Folder “Photos”.