Overton H. Taylor described his book, A History of Economic Thought: Social Ideals and Economic Theories from Quesnay to Keynes (McGraw-Hill, 1960), as “an outgrowth from, or reduction to book form of, a part of the course of lectures, covering the same ground, which I have given annually for many years at Harvard University.” This post provides the undergraduate course outline and final examination for the second half of his course that began with mercantilism and ended with New Deal liberalism and Keynesian economics.
Material from the first half of the course for the immediately following academic year (covering much the same material but stopping at the end of the 19th century) has been posted earlier:
Syllabus. Economics 115 (Fall Term, 1948-49). Economics and Political Ideas in Modern Times.
Final Exam. Economics 115 (Fall Term, 1948-49). Economics and Political Ideas in Modern Times
A much earlier version of the material for a one semester course has likewise been posted:
Syllabus. Economics 1b (Spring Term, 1940-41). The Intellectual Background of Economic Thought.
Final Exam. Economics 1b (Spring Term, 1940-41). The Intellectual Background of Economic Thought.
Greater emphasis on the economic theory was given in his graduate course:
Syllabus. Economics 205a (Fall Term, 1948-49). Main Currents of Thought in Economics and Related Studies over Recent Centuries.
In the Preface to his 1960 book Taylor described his purpose in writing as follows:
Perhaps I have a desire to be a ‘missionary’ in both directions–to convert as many noneconomist or lay readers as I can into interested students of economic theory and its history, and to convert more fellow-economists into interested students, also, of the diverse, general views or perspectives on all human affairs which formerly concerned all philosophical political economists.
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Course Enrollment
[Economics] 15a. Dr. Taylor.—Economics and Political Ideas in Modern Times (F).
Total 100: 5 Graduate, 44 Seniors, 40 Juniors, 8 Sophomores, 1 Radcliffe, 2 Other.
[Economics] 15b. Dr. Taylor.—Economics and Political Ideas in Modern Times (Sp).
Total 33: 2 Graduates, 18 Seniors, 8 Juniors, 1 Sophomore, 2 Radcliffe, 2 Public Administration.
Source: 15a, Fall term ; 15b, Spring term: Harvard University. Report of the President of Harvard College, 1947-48, pp. 68, 89.
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Economics 15b (115)
Spring Term, 1948
Outline
I. February 5 — 14. 17th Century Political Absolutism and Mercantilism. Liberalism.
Reading due February 14:
(1) Hobbes Leviathan, Chs. 1-6, incl.; 13, 14, 15, 17, 18, 21, 24;
(2) Locke, Civil Government II, Chs. 2, 3, 5, and 7-12, Incl.; and
(3) Gray, Economic Doctrines, Chs. 1-3.
Lectures
Th., Feb. 5, Introductory lecture about the course.
Sat, Feb. 7, Western civilization in the 17th Century, and the philosophy and political theory of Hobbes.
Tu., Feb. 10, Mercantilism and its economic theory.
Th., Feb. 12, 18th Century liberalism vs. political absolutism and mercantilism; and Locke’s theory of the free society.
Discussion
Sat., Feb. 14, Class discussion of the reading in Hobbes, Locke, and Gray.
II. February 17 — 28. 1705-1850. Foundations of the Classical, Liberal Theory of Political Economy.
Reading due February 28:
(1) Adam Smith, Theory of Moral Sentiments: Part I, sec. I, and Part II, secs. I, II or (1a) Selby-Bigge, British Moralists, Selection from A. Smith, Moral Sentiments;
(2) Adam Smith, Wealth of Nations, Book I, 1-7, incl.
Lectures
Tu., Feb. 17 Newton, Locke, and the 18th century’s vision of “the natural order.”
Th., Feb. 19 The philosophy and economic theory of the Physiocrats.
Sat., Feb. 21 Adam Smith’s philosophy, theory of morals and law, and economic theory.
Tu., Feb. 24 Hume and Bentham vs. natural law. Utilitarian liberalism.
Th., Feb. 26 Malthus and Ricardo. The classical theory of political economy.
Discussion
Sat., Feb. 28 Class discussion of the Adam Smith reading.
III. March 2 — 13. Early 19th Romantic and Positivistic Attacks and Alternatives.
Reading due March 13
(1) Spann, History of Economics, Chs. [no chapters given, but would appear to be Spann’s Chapter 8A of the 1930 translation “Types of Economic Theory”]
(2) Comte, Positive Philosophy, pp.[no pages given, but note Introd. Ch. 1; Book VI, 1, 2 were assigned by Taylor in his graduate course Econ 205a]
(3) J. S. Mill, Essays, Utilitarianism, and Liberty.
Lectures
Tu., March 2, The romantic movement and the anti-liberal reaction.
Th., March 4, Carlyle and Ruskin vs. the economists and utilitarians.
Sat., March 6, The romantic reaction in Germany, and types of political and economic thought it produced there.
Tu., March 9, August Comte’s philosophy, and critique of the classical, liberal economic theory.
Th., March 11, Early socialism; and J. S. Mill’s attempted synthesis.
Discussion
Sat., March 13, Class discussion of the Spann, Comte, and Mill reading.
IV. March 16 — 27. Marxism.
Reading due March 27:
Burns, Handbook of Marxism, Chs. [no chapters given here, but note Chs. 1, 13, 14, 22, 26, 29, 30 were assigned by Taylor in his graduate course Econ 205a]
Lectures
Tu., March 16, Antecedents and elements of Marxism: “utopian” socialism, Hegel’s philosophy of history, and Ricardo’s economic theory.
Th., March 18, Marx: theory of history.
Sat., March 20, Marx: economic theory of capitalism: value, wages, and profits.
Tu., March 23, Marx: theory of capitalism’s destined evolution and self-destruction.
Th., March 25, Marx: theory of the revolution and the new society.
Discussion
Sat., March 27, Discussion of the Marx reading.
March 28—April 4, Spring Recess
V. April 5 — 17. 1870-1914. Victorian Conservative Liberalism and Neo-Classical Economics.
Reading due April 17:
(1) C. Brinton, English Political Thought in the 19th Century, Ch. III, Secs. 1, 2; IV, 1, 2, 3, 4; and
(2) A. Marshall, Principles of Economics, Book I, Chs. 1-3; III; IV, Chs. 1-3 and 8-13; and V, Chs. 1-5.
Lectures
Tu., April 5, The epoch and ideology of Victorian conservative liberalism.
Th., April 7, The renaissance and new ideas of liberal economic theory in this epoch. The discoverers of “marginal utility”—Jevons, the Austrians, Walras, and Marshall.
Sat., April 9, The market mechanism of the free economy and its equilibrium.
Tu., April 13, Marginal productivity and incomes; Clark and Carver.
Th., April 15, Alfred Marshall.
Discussion
Sat., April 17, Discussion of the political ideas of Brinton’s Victorians, and Marshall’s economics.
VI. April 20 — May 1. Present Day Ideologies and Economic Theory.
Reading due May 1:
(1) Sabine, History of Political Theory, Chs. 28 to end of book, omit 31;
(2) John Dewey, Liberalism and Social Action; and
(3) Beveridge, Full Employment in a Free Society, Part II, Sec. 2, and III through Sec. 5.
Lectures
Tu., April 20, Russian Communism versus Democracy and Liberal Capitalism or Liberal Socialism.
Th., April 22, Ideas of and about Fascism.
Sat., April 24, From 19th century to present day Liberalism.—continuity and contrast. The New Deal and the American tradition.
Tu., April 27, The economic theory of monopolistic competition, and liberal policy.
Th., April 29, “Keynesian” economic theory, and liberal policy.
Discussion
Sat, May 1, Discussion of the Sabine, Dewey, and Beveridge reading.
* * * * * * * * *
Reading Period
May 3—15, 1948
Economics 15b: Read one of the following:
Schumpeter: Capitalism, Socialism, and Democracy, Parts 1, 2, and 4.
Lionel Robbins: Nature and Significance of Economics.
Source: Harvard University Archives. Syllabi, course outlines and reading lists I Economics, 1895-2003. Box 4, Folder “Economics, 1947-1948 (1 of 2)”
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1947-48
HARVARD UNIVERSITY
ECONOMICS 15b
[Final examination, May 1948]
Answer in all five questions, including 7a or 7b; and make one of your answers a one hour essay, so marked in your blue book.
- “Although the classical economists were free market liberals, the picture presented in their economic theory of the ‘natural’ working of the free market economy was not a picture of utopian perfection. They acknowledged a number of real flaws in the system. Then Marx, professing to build on but actually distorting the classical theory, exaggerated those flaws into evils held to be destined to destroy the system. And later the neo-classical economists, in opposition to Marx and in the effort to buttress laissez-faire more thoroughly, revised the old classical theory into one which appeared to support an unqualified optimism.”
Explain and discuss each part of the statement. What flaws did old classical theory find in the system? What graver ones did Marx impute to it, and what were the chief similarities and differences between his and Ricardo’s doctrines in this connection? What novel concepts and doctrines in neo-classical theory contributed to its purer optimism; and how did they do so, and how legitimately? - “The trouble with the free enterprise or free market economic system is that its long-run effects on a society’s culture and internally prevailing human attitudes, eventually destroy the kind of milieu which alone can enable this economic system to serve the general welfare, and survive. Where and as long as there is a real community, held together by a real moral consensus holding the competition of private interests within the bounds of mutual fair play, the free market system can develop and function well. But in time the growth of competitive, acquisitive ambitions and skills, in the mass of individuals and private groups, breaks through and dissolves the moral consensus and the bonds uniting the community. Competition then becomes warfare and anarchy, and coercive public controls must be developed to take the place, if possible, of the agreement in self-control by all severally, which has broken down.”
What truth if any do you think is contained in this argument? What might be cited as some times of historical and contemporary evidence at least appearing to support it, and help convincingly in your judgment can it be thus supported? How might an economic theorist still thoroughly devoted to free-market liberalism, reply to the argument, and how if at all would you criticize his (best) reply to it? - “The theory of monopolistic competition proves that, instead of harmonizing all private interests with the public interests, most actual business competition has characteristics which make the maximizing of private gains decidedly injurious to the economic welfare of society.”
Explain and discuss. What characteristics of “most actual business competition” are referred to? Explain the proof of their socially undesirable consequences, and discuss any criticisms or limitations of this proof that you think may be valid. Do you think “decidedly injurious” is an overstatement? Why or why not? - “Classical economics denied that there ever could be any deficiency of total demand for a full-employment output of the economy. Marx saw inevitable, chronic deficiency of total demand as one of the ‘internal contradictions’ bound eventually to destroy private capitalism. Keynes agreed with Marx about the deficiency, but, having a different theory of its causes, thinks it can be remedied by a simple type of governmental action within the capitalist framework.”
Explain and discuss. How did the classical view support its denial of the possibility of deficient demand? Why is demand deficient according to Marx? Wherein does Keynes agree, and disagree with Marx? On what assumptions may the Keynesian remedy be held come consistent with retention of private capitalism; on what other assumptions, inconsistent with that? - Describe and discuss all the main, admitted, and (in your opinion) likely ultimate, curtailment of individual freedoms in the Beveridge program for assuring “full employment in a free society.” Would you fear an eventual loss of virtually all freedom – “totalitarian” outcome – if the whole program were adopted in this country? Why or why not?
- Discuss the common and the divergent elements of the old classical liberalism, the liberalism of the Roosevelt New Deal, and the outlook of the average present day American exponent of “free enterprise.” As between our “New Dealers” and conservative “free enterprisers,” which group more nearly represents the main essentials of the older liberalism, in your opinion? Explain and defend your opinion on the last point carefully.
- (a) If you read Schumpeter in the reading period, explain and discuss his theory of the ways in which capitalism is preparing its own demise and the way for socialism.
(b) If you read Robbins, state in your own words, and discuss critically, his definition of what economic science deals with and accomplishes.
Source: Harvard University Archives. Harvard University. Final Examinations, 1853-2001, Box 15, Papers Printed For Final Examinations: History, History of Religions,…,Economics,…Military Science, Naval Science. May 1948.
Image source: O. H. Taylor in the Harvard Class Album, 1942.