Following his retirement from federal government service as an economic statistician, Milton Moss (Columbia economics Ph.D., 1962) taught a one semester undergraduate survey course on the history of economics at the University of Maryland from 1981 through 1986. He shared his course outline and reading assignments with his old former colleague at the Federal Reserve Board Herbert Furth in whose papers at the Hoover Institution Archives I was able to find the copy transcribed below. Checking the undergraduate course catalogues for the University of Maryland, I could verify that Moss was a part-time lecturer and that this course was indeed offered under this number in the early 1980s.
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Economics 307
The Development of Economic Ideas
[University of Maryland, 1986]
General Syllabus and
Course Outline of Topics, Readings and Questions
Dr. Milton Moss
General Syllabus
Course: Econ 307: The Development of Economic Ideas, Dr. Milton Moss.
Objective: To give an historical perspective to present day economic ideas, highlighting the interactions of economic, social, and political issues and policies.
Readings:
Required:
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- Harry Landreth, History of Economic Theory
- Charles W. Needy, Classics of Economics
Recommended
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- Robert Heilbroner, The Worldly Philosophers (very entertaining)
- Mark Blaug, Economic Theory in Retrospect (challenging)
- Eric Roll, A History of Economic Thought, 4th edition (optional)
- Bible, Old and New Testaments (optional)
- M. I. Finley, The Ancient Economy (optional)
- Joseph Schumpeter, Capitalism, Socialism and Democracy (very useful for Marx)
Topics:
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- Overview—Main Themes of the Course
- Before Economics Became a “Science”—Antiquity and Middle Ages
- Mercantilism & Physiocracy
- Classicism—Smith, Malthus, Ricardo
- Marxism
- Marginal Analysis and Microeconomics—Jevons, Menger, Marshall, and Modern versions
- Veblen and Institutional Economics
- Keynes and Macroeconomics
- Measurement of Economic Performance—National Income and Income Distribution
- Review of Main Themes of the Course
Examinations:
Three exams:
Premidterm (20 points)
Midterm (30 points)
Final (50 points)
Each exam will be discussed one week in advance of the examination date.
Outline of Topics, Readings, and Questions
- Before Economics Became a “Science”—500 B.C.—1300 A.D.
Readings: Landreth 14-19; Roll, Chap. I; Bible: Genesis, 41, 1-36; Leviticus, 27, 1-8; Finley, 17-19;
Student notes in class lecture and discussion.
Questions:
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- “Economics is the oldest art but one of the youngest sciences.” What does this mean?
- What did Xenophon mean by “OIKONOMICOS”?
- What is a “just” price? A “just” interest charge?
- What is the money value of a human being?
- What food supply policy did Joseph recommend in Ancient Egypt?
- Mercantilism and Physiocracy—1500-1750+
Thomas Mun and Francois Quesnay.
Readings: Landreth 19-29; Needy, 1-14; Blaug, 10-36; Roll, Chap. II and p. 128-137.
Lectures and discussion.
Questions: How does Mercantilism differ from Physiocracy on:
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- What makes a nation wealthy and powerful?
- How government policy may further a nation’s economic goals?
- How all economic transactions in a nation are interdependent?
- Classicism—1770-1830+
— Adam Smith, T. R. Malthus, David Ricardo, J.S. Mill, J.-B. Say.
Readings: Landreth 31-151; Needy, 15-83; Blaug, 36-235; Roll, Chap. IV; Heilbroner*, 40-101.
Lectures and discussion.
Questions:
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- Why are some nations poor and others rich?
- Why do people and/or nations gain through specialization and free exchange?
- How do free markets “naturally” lead capital and labor to their most efficient uses?
- Why are wages unequal in different occupations?
- How do changes in productivity of labor and in costs of production change the distribution between wages, profits, and rent?
- What is the effect of population growth on economic well-being? On poverty?
- Why might a scarce resource such as land lead to “diminishing returns”?
- Is overproduction or underconsumption economically possible?
- Marxism—1850-1880 and modern versions.
Karl Marx and his “successors.”
Readings: Landreth 153-190; Blaug, 236-309; Roll, Chap. VI; Needy, 84-108; Heilbroner*, 133-167; Schumpeter, 1-59.
Lectures and discussion.
Questions:
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- How did Marx build upon the classical labor cost theory of value to explain the distribution of income between wages and profits?
- What is the economic incentive for technological change?
- How does technological change lead to:
a. monopoly?
b. a reserve army of the unemployed?
c. Socialism? - How do economic incentives affect the relation between money and production of commodities?
- What is the Marxian view of the role of the State under capitalism? In welfare policy? In foreign policy?
- Why is Marxism seemingly so influential in today’s politics and economics—especially in the “Third World”?
- Marginal Analysis and Microeconomics—1870 to present day.
W. S. Jevons, Carl Menger, L. Walras, A. Marshall and modern theory.
Readings: Landreth 191-316 (but mainly 201-18 and 279-316); Needy, 118-146; Blaug, 309-390; Roll, Ch. VIII.
Lectures and discussion.
Questions:
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- How did marginalism shift price analysis away from the labor or cost theory of value to analysis of demand and supply?
- How does marginal utility in relation to price explain demand?
- How does marginal cost in relation to price explain supply?
- To what uses besides demand and supply questions is marginal analysis applicable at the present time?
- Veblen and “Institutional” Economics—1899 to date.
Mostly Veblen, but references also to W. C. Mitchell, J. R. Commons, and J. Galbraith.
Readings: Landreth 317-345, 354-360; Needy, 174-198, 1982-212 (optional); Heilbroner*, 210-244; Roll, 439-454. Lectures and discussion.
Questions:
-
- Economic behavior, according to Veblen, can be divided into two main types: “Industrial employments,” and “pecuniary employments”.
a. How does this view of economic behavior differ from that of Smith, Marx, and the marginalists?
b. What are some examples of the two types of behavior? In Veblen’s day? At the present time? - Should economics be a study of disequilibrium rather than equilibrium? Of institutional change rather than fixed economic laws?
- Economic behavior, according to Veblen, can be divided into two main types: “Industrial employments,” and “pecuniary employments”.
- Keynes and Macroeconomics—1930 to present.
Readings: Landreth 431-497; Needy, 324-352; Heilbroner*, 245-283; Blaug, 665-692 (difficult reading but worth trying your hand at—entirely optional); Roll, 479-497.
Lectures and discussion.
Questions:
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- During the great depression of the 1930’s what different proposals were made for putting people back to work? Marxian? Neoclassical? Keynesian?
- How did the Keynesian framework of aggregate demand change the analysis of employment?
- What is the effect of changes in aggregate demand, especially investment demand, on general economic fluctuations?
- What role can Government play in diminishing economic fluctuations? Critically examine that role.
- How has the trade-off between unemployment and inflation resulted in a reappraisal of Keynesian macroeconomic policy?
- Is Keynes only a depression economist? Has “stagflation”—the concurrence of a stagnant economy and inflation-upset the foundations of Keynesian theory?
- What are the main alternative views of macroeconomic policy today?
- Measurement of Economic Performance — 1690—Present.
Topics: National Income, Gross National Product, and Income Distribution.
Rely almost entirely on lectures.
Questions:
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- What are some highlights in the historical development of measurement of the income of nations?
- National Income as presently compiled shows how income of a nation is distributed while Gross National Product shows how income is used. Why is that?
- What have been some key uses by government and business policy makers of the National Income and Product Statistics?
- On income distribution, what are the main issues that distinguish distribution of income to the factors of production from distribution by size of income among persons and households?
- What are the advantages and limitations to using income as a measure of economic well-being?
- Review of the Main Themes in the History of Economic Thought
General Discussion.
Note to Readings—Underlined references are required readings. Others are optional. References to Heilbroner are asterisked because students are likely to enjoy his entertaining and lively writing. Note that reference to Lectures and discussion are in bold indicating their critical importance in this course.
Source: Hoover Institution Archives. J. Herbert Furth Papers. Box 12.
Image Source: Adam Smith by James Tassie (1787). The National Portrait Gallery (U.K.)