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Chicago. Price Theory (Econ 300A and B) Exams. Friedman, Winter Quarter, 1947

 

Norman Kaplan’s handwritten  list of readings for Milton Friedman’s price theory courses (Economics 300A and 300B) taught during the winter quarter of 1947 at the University of Chicago has been posted earlier. That winter quarter was the first time Friedman taught Economics 300B and only the second time he taught Economics 300A. In Friedman’s and Kaplan’s papers at Hoover and Chicago, respectively, I have found examination materials from that quarter.  Friedman’s two quarter sequence was not included in the course announcements for 1946-47, so I have included the announcement for 1947-48.    The 1948 course reading assignments have been transcribed as well.

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Course Announcement

300A,B. Price Theory. A systematic study of the pricing of final products and factors of production under essentially stationary conditions. Covers both perfect competition and such imperfectly competitive conditions as monopolistic competition, oligopoly, and monopoly. 300A deals primarily with the pricing of final products; 300B, with the pricing of factors of production. Prereq: Econ 209 or equiv. and Econ 213 or equiv or consent of instructor.

300A. Aut: MWF 9:30; Win: MWF 10:30; Friedman.
300B. Win: MWF 9:30; Spr: MWF 9:30; Friedman

Source: Announcements. The College and the Divisions, Sessions of 1947-1948.   Vol. XLVII, No. 4 (May 15, 1947), p. 224.

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PROBLEM FOR ECONOMICS 300A, WINTER 1947

Assume that a comprehensive system of point rationing is superimposed on a money price system. Each consumer is given an equal number of points although money incomes are very unequal. Point prices exist for every commodity for which a money price exists, and a consumer must pay over both points and money to purchase a commodity. To simplify the analysis, assume throughout (1) that the points are dated, (that is, can be used only during a specific period), (2) that fixed and known quantities of various commodities are available each period.

(a) Indicate (on an indifference diagram or in any other manner) how to determine the quantity of each good that an individual would purchase, given money prices, point prices, his money income, and his point income (i) if it is illegal to transfer points from one person to another and consumers conform to this requirement, and (ii) if points may legally be bought and sold for money. In this case, take as given to the individual consumer also the price of points in terms of money.

(b) If the only thing the government fixed were the number of points each individual receives, and it were to allow the money prices, point prices, and price of points in terms of money to be determined on the market, there would not be a unique set of values of these variables that would establish equilibrium, because the number of variables would be greater than the number of conditions. Explain this statement. Suppose the government tries to remove the indeterminacy by assigning values to some variables on the basis of criteria other than clearing the market. How many variables could the government so set and still have a determinate equilibrium? Does it matter which variables the government sets?

(c) It has been argues that every consumer will gain if non-transferable points, case (a) (i), were made freely transferable into money, case (a) (ii). Do you think this correct? Discuss.

 

Mid-Quarter Examination in Economics 300A
Winter, 1947

  1. (20 points) Define briefly:
    1. Indifference curve
    2. Income effect of a change in price
    3. Equilibrium price
    4. Marshallian demand curve
    5. Marginal rate of substitution
  2. (40 points) Indicate whether each of the following statements is true (T), false (F), or uncertain (U), and state briefly the reason for your answer.

A government subsidy of $100 per year to each grower of potatoes enacted after the end of a particular planting season and expected to be continued indefinitely will lower the price of potatoes (which it is assumed cannot be stored)

_____ a. for that season’s crop.

_____ b. in the long run.

During period when general business is improving, both the price and output of steel rise. This means

_____ a. that the income effect of the rise in price is greater than the substitution effect.

_____ b. that the demand for steel is inelastic.

_____ c. that the demand for steel increases with income.

Removal of rent control would

_____ a. reduce the money wages of maids.

_____ b. reduce the price of trailers.

_____ If the removal of rent controls were to lead to a rise in rents, then the total amount paid in rents would decline if the demand for rental housing were elastic and rise if the demand for rental housing were inelastic.

_____ “Since elasticity measures variation in quantity (demanded or offered) divided by variations in a price, the elasticity of demand for anything will be seven times as large for seven similar demanders as it is for one.” (A. C. Pigou)

_____ A rise in the price of coal will reduce the number of “Okies” trying to go to California.

  1. (40 points) Assume that a system of point rationing is superimposed on a price system. Each consumer is given a specified total number of points, point prices are set on various commodities, and a consumer must pay over both points and money to purchase a commodity. For simplicity, assume that there are only two commodities in the system. Indicate (on an indifference diagram or in any other manner), how to determine the quantity of each of the two commodities an individual would purchase, given money prices, point prices, his money income, and his point income.

(a) If it is illegal to transfer points from one person to another and consumers conform to this requirement. In your explanation, distinguish among the various special cases that may arise.

(b) If points may legally be bought and sold for money. In this case, take as given also the price of points in terms of money.

(c) Suppose that a fixed total quantity of each of the two goods is available; that point prices are fixed by the government, money prices are freely determined so as to clear the market; and that in case (a) some consumers are left with points which they cannot spend because they do not have enough money. The legal prohibition against transferring points is now removed, the point prices and the total number of points issued are unchanged, and the price of points in terms of money is determined in the open market. What, if anything, can be said about the price of points in terms of money under these conditions?

 

Source: Hoover Institution Archives. Papers of Milton Friedman. Box 76, Folder 9 “University of Chicago Econ. 300A”.

 

Final Examination 300A
Winter, 1947

Has not been found either in Milton Friedman papers (Hoover Archives) nor at the Norman Kaplan papers (University of Chicago Archives).

 

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Mid-Quarter Examination in Economics 300B
Winter, 1947

  1. Indicate briefly whether the following statements are correct or incorrect and why.
    1. Economic theorists contend that, under competition, wages are always equal to the marginal product of labor. It seems to follow that if they are right, the simplest way to raise the productivity of labor, and hence to increase the total output of society, is to force employers to pay higher wages.
    2. The value of the marginal product of a laborer employed at the same wage rate is higher if he is employed by a monopolistic firm than if he is employed by a competitive firm. It follows that the monopoly employs labor more efficiently.
    3. A rise in wages will tend to lower the marginal productivity of capital.
    4. The law of diminishing returns is contradicted by the fact that agricultural output of this country has increased tremendously despite a decrease in the proportion of the working population on farms.
  2. Discuss the conditions that may give rise to long-run decreasing cost for an industry. What are the implications of the various conditions for the state of competition in this industry.
  3. Suppose the wage differential between northern and southern laborers of the same grade were eliminated by raising the southern wage rates. Discuss the short- and long-run economic effects, including the effects on employment in the north and south.
  4. A particular industry composed of numerous competing firms each producing a single product has been hiring labor by the hour and is in a position of long-run equilibrium. This industry (and no other) is required, because of a new law, to hire the labor by the year at a guaranteed annual wage equal to the hourly wage prevailing prior to the change times the number of hours in a normal working year. Discuss (1) the short-run effect of this change on (a) the average and marginal cost curve of a typical firm, (b) the output of that firm, (c) the number of man hours of labor employed by that firm; (2) the long-run effects on the number of firms in the industry and the output of the industry.

 

Final Examination in 300B
Winter Quarter, 1947

Part I

  1. The income of farmers from the sale of their products depends on the prices at which the products sell. The general level of agricultural prices, in turn, depends primarily on the income of nonfarm population. But the income of the nonfarm population depends on the prices of nonfarm products which, in turn, depends partly on the income of farmers.
    This kind of analysis is often criticized as circular reasoning and hence as incapable of leading to any useful conclusions. Is this criticism valid? Explain your answer.
  2. Discuss the following quotation from Marshall:

“A useful history of the opposition to machinery is given in Industrial Democracy (by Sidney and Beatrice Webb)…It is combined with the advice (to trade unions) not generally to resist the introduction of machinery, but not to accept lower wages for working on the old methods in order to meet its competition. This is good advice for young men. But it cannot be followed by men who have reached their prime.”

  1. How would you expect prices in local, neighborhood, stores in large cities to compare with prices in the central shopping district (in Chicago, the “loop”)? In your answer, distinguish among different products, and include an evaluation of the statement so often made by neighborhood stores that they can charge lower prices because they pay lower rents.

Part II

  1. There are 100 each of A and B farms. The product schedules of one farm are
Number of laborers Total Product
A Farm B Farm
1 40 40
2 90 80
3 140 115
4 185 145
5 225 170
6 260 190
7 290 205
8 315 215
9 335 220

a) Determine wages, rents, and employment on both types of farms

(i) if there are 900 laborers and full competition
(ii) if with 900 laborers, the laborers on the A farms organize and succeed in setting a wage rate of 40,
(iii) if, with 900 laborers, the laborers on the A farms organize and succeed in raising the standard wage rate to 47.

b) State briefly the general economic principles illustrated by each part of the above problem.

  1. Consider a hypothetical society in which there is no investment, either net or gross. All capital is completely permanent, not subject to change in form but capable of being used for different purposes. There is no lending or borrowing, no selling or buying of capital goods: whoever owns the capital goods is forced by the laws or conventions of society to hold them and is permitted only to rent them out (i.e., all capital is subject to the conventions that now govern human capital). Hence there is no market interest rate that matters, and all saving takes the form of hoarding of cash. The total amount of money in society is fixed in nominal units (say dollars). Wages are initially rigid (by law or otherwise) and the society is in a state of Keynesian unemployment equilibrium, unemployment keeping the real income down to a level at which dissaving equals saving, so total net saving is zero.Now wages are made flexible. Describe the process of adjustment to a new equilibrium position. Does this new position involve unemployment? What is the equilibrium condition on total net saving? What forces operate to bring about the satisfaction of this equilibrium condition?

Source: Kaplan, Norman Maurice. Papers, Box 1, Folder 8, Special Collections Research Center, University of Chicago Library.

Image Source:  Milton Friedman, from University of Chicago Photographic Archive, apf1-06230, Special Collections Research Center, University of Chicago Library.

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Chicago Exam Questions Suggested Reading

Chicago. Jacob Viner’s Price and Distribution Theory Course, 1941

 

 

Jacob Viner’s graduate course on price and distribution theory has become a legend in the history of economics. Milton Friedman (1932) [links to many of the course readings assigned by Viner found in the posting for 1932] attended Viner’s lectures as did Paul Samuelson (1935). During the Fall quarter of 1941, Norman M. Kaplan attended Viner’s price and distribution theory course. From Kaplan’s approximately 100 pages of handwritten class notes plus 150 pages of handwritten notes on the course readings, I am able to post today a transcription of his notes from the first week of the course along with a list of titles of readings that I have found referred to in his class notes and/or in his reading notes. In the folder with these notes one also find course examination questions together with Kaplan’s answers. I only include Viner’s examination questions today.

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Course Description

  1. Price and Distribution Theory.—A study of the general body of economic thought which centers about the theory of value and distribution and is regarded as “orthodox theory.” This course includes the critical examination of some modern systems of this character. Prerequisite: Economics 209 or equivalent and the Bachelor’s degree. Summer, 8:00, Knight; Autumn, 9:00, Viner.

Source: Announcements of the University of Chicago. Vol. XLI, No. 10. (April 25, 1941). The College and the Divisions for the Sessions of 1941-1942. p. 306.

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First Week: Introduction
Kaplan’s notes to Viner’s lectures

Oct. 7

I.   Changes in econ. theory in last 10 years.

  1. Increasing tendency now to general as vs. partial equilibrium analysis. (More than one variable permitted to vary as vs. Marshall,: ceteris paribus relaxed). You surrender usually the breadth of the generalization in the interest of reality, of closer approximation to facts. Since Walras-Pareto school, technical skill of economists has increased so that little is lost in way of generalization. Few now use Walras-Pareto method; Schultz last used Lausanne method preceded by Henry Moore.
  2. A more definite and thorough incorporation of monetary theory in general theory. In Marshall’s Principles, e.g., equilibrium is described with monetary theory & banking structure excluded. This stemmed from Classical Economists’ criticism of Mercantilists as exaggerating role of money; money was a “veil covering other things”. Since 1929, emphasis has been placed on monetary theory due to depression (depressions always yield concentration on monetary matters) and to special influence of Keynes.
  3. Increasing attention to cyclical phenomena (now on wane, thinks Viner)—depression is normal & prosperity an aberration.
  4. Greater attention paid to monopolisitic practices and to deviations from perfect competition.
  5. Substitution of production theory for distribution theory. Distribution theory in Marshallian sense is disappearing from theory.

Viner will give little of these changes; this is a course in Marshallian econ., primarily.

II. Most of econ. propositions are quantitative in nature, mathematical

(Includes “greater than”, and “less than” concepts; though qualitative may also be math.).

Criteria: (1) Have you been logically consistent; (2) If you have been logically consistent, where have you gotten in deduction from premises. Another important issue is selection of premises; here is where economists frequently fall down.

Premises must be examined: (1) what variables are you recognizing; (2) how many & nature of variables; (3) nature of preconceptions—what do you assume with regard to econ. rationality, e.g. Part of reason for controversial nature of econ. is wide range of possible choices as to premises due to wide range of variables in any situation as vs. physical sciences where there are few variables & laboratory control can reduce the no. of these. On the other hand, variables in econ. are too few to apply probability theory as in actuarial science or celestial mechanics where you don’t have to worry about nature of variables, since great no. of variables none of which has any intelligible significance.

III. Two types of analysis:

(1) Reduction of variables in any situation & particular scrutiny of variables; (2) Probability theory. Criteria of probability theory: (1) Population is large; (2) Population is homogeneous; (3) All members are roughly coordinate in effect. Economist uses probability in his statistical analyses; he selects dominant variables & leaves the rest to probability theory on grounds that none of these variables exert a very important influence on result. Leaving the rest to probability is an euphemism for neglecting them.

IV. Marshallian approach is a static equilibrium approach.

Changes & disturbances through time have been dealt with not through process analysis [illegible parenthetical insert here: perhaps “(time implicit)”)] but through comparative statics—no analysis of how you get from one place to another through time but a comparison of two static equilibriums with slight changes. Marshallian economics is a balanced aquarium system, with individual inhabitants undergoing cycles of life & death but with the equilibrium undisturbed by individual dynamics.

 

Oct. 8

I. We ordinarily assume a stationary economy in some sense (something not changing through time) in orthodox theory.

  1. Often you start out with “exchange economy”—no change in production; no consumption. All participants have commodities, swap; who has what & how much?
  2. Another type of assumption.—fixed quantity of resources or factors of production
  3. Another type of assumption.—fixed quantity of services
  4. Another type of assumption.—fixed supply functions of resources (not inconsistent with stationary state)
  5. Another type of assumption.—fixed supply functions of services (not inconsistent with stationary state)

II. [Meaning of stable equilibrium]

In assuming stable equilibrium, you may assume that all atoms are in equil. or that atoms may be in disequilibrium but over all equil. is possible because disequil. in one direction are offset by disequil. in other direction.[Note by Kaplan:

III. Theorists are tending to work from individuals to aggregate rather than vice versa.

IV. Neo-classical theory is criticized as being abstract.

  1. But abstraction is necessary to generalizations & generalization is the only thought we know.
  2. Such critics usually meant that it’s too abstract, if they mean anything.
    1. Complete absence of concrete detail is practically inconceivable. There always must be some factual or allegedly factual material or you wouldn’t know it was econ.
    2. Complete particularism (no generalization) can’t be found.
      1. Even an infant beginning to talk uses generalizations—“cat” as label
      2. Use of symbols is so tied with generalization it’s impossible to use words without generalization.

Walton H. Hamilton is a particularist; generalizations are dangerous because they lead to abstraction. His book on prices shows each industry has peculiarities of its own. Of course, but particularism is dangerous because it shows absence of thought; no inquiry into uniformities.

The degree of abstraction depends on the purpose of economic inquiry—eternal economic truths or problem solving.

V. 4 kinds of purposes in economic analysis.

  1. Intellectual exercise
  2. Cultural value—throwing light on history & nature of mankind
  3. Tool sharpening—to teach skill in use & invention of tools of analysis
  4. (Social) problem solving—most important for profession as a whole.

Degree of abstraction depends on purpose.

VI. Econ. is criticized for assuming the rationality of man

(Cf. Mitchell’s [word illegible: appears to be “Phillisipl”, probably a misspelling of “Felicific. See Wesley Clair Mitchell, “Bentham’s Felicific Calculus”. Political Science Quarterly (June, 1918), pp. 161-183.] Calculation of Bentham) Mitchell says we have now learned man is not dominated by rational behavior—thinking of Freud & Behaviorism.

But what is rational behavior? What proportion of time must a man spend so behaving (after rational is defined) to be dominated by such behavior? Sentence is meaningless. Habit may be rational in origin, habitual behavior does not mean irrational behavior.

  1. does assume rationality in some sense.
  2. To econ. rationality means:
    1. Correct use of means to attain desired ends, given the state of kg. [knowledge] of the actor.
    2. Substantial degree of reliable accurate kg. [knowledge]
    3. Immediate ends of behavior econ. is looking at are primarily economic—i.e., directed towards wealth, leisure, productive activity.

Testing rationality would be very difficult probably impossible.

  1. Classical economist believed that except for depraved & degraded persons the behavior of man was substantially close to the three criteria to constitute rationality. They were biased in favor of rationality because they were essentially democrats (politically) & equalitarians [sic]. They had a technological (professional) bias in favor of rationality because they were proficient in such an assumption, they had been taught that. (A professional bias, not a class bias, says Viner). That technological bias was for a priori deductive analysis because earlier classicals were deductive and it was easier & body of kg. [knowledge] was deductive. Deductive analysis is tied up with rationality because otherwise you would have to make observations to know how men would behave. Econ. even deductive econ., is not absolutely tied to rationality but only to some predictable pattern of human behavior (which may be irrational, but must be predictable if science is to be a priori.[)]

Oct. 9

I. Assumption of rationality.

  1. No reason why econ. couldn’t take account of irrationality if it could find such patterns, but that would take systematic observation. Rationality is easier.
  2. Economic man:
    1. Is he selfish? Unit is the family; it’s an economic family not an economic man; Ricardo, e.g., took it for granted that wife would be taken care of & children raised. Ends which economist treats are not final ends, though they may be final as far as economist analyzes. Assumption is only that in market place, man is economic. Whatever altruistic motives man may have are not directed towards other party to contract. Altruism or hostility to other bargainer disturbs economic theory; participant is neutral towards other. This is extent of selfishness. Such an assumption—indifference of party A in contrast to welfare of party B—may be unrealistic in some markets: hostility in Irish landlord-tenant and Negroe [sic] sharecropper relation and benevolence in English landlord-tenant relation. English landlord may be acting rationally, though not an economic man.
    2. Not synonymous with rationality.

II. [When the “means” themselves are “ends”]

You don’t get very far with definition of econ. as application of scarce resources to desired ends because one of the most difficult problems is to distinguish between means and ends. Adam Smith dealt with division of labor as allocation of scarce resources to desired ends but Ferguson criticized Smith for not seeing the values in the activities. What Smith thought were means may have been ends. Agriculture may be a means, but it may also be an end—agr. as a “way of life”.

III. What is rational attitude towards risk taking?

Value all risks which could be valued at actuarial values? But is abhorrence of risks & therefore undervaluing them or love of chance & therefore overvaluing any the less rational.[?]

IV. Even Classical did not always assume rationality:

  1. Dealt with ignorance factor—patterns of behavior due to misinformation or lack of it
  2. In connection with savings they said masses failed to make adequate provision for future, did not foresee needs of the future or hadn’t the will to so provide (former is ignorance; latter is irrationality)
  3. Population theory based on irrationality—family decisions not made on grounds of economic welfare.

We will assume rationality in this course, but in economics generally we must be flexible and willing to drop the assumption if necessary.

End of introduction

[Oct. 9 notes continue with a preliminary discussion of the Marshallian demand curve]

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 Suggested/Required Course Readings
Compiled from Kaplan’s notes
Notes on these readings ( made by Kaplan

Demand & Supply: Cost of Production

*Marshall, Book V, Ch. 1, 2, 3, 4, 5, 12, Appendix H
*Viner, Cost Curves & Supply Curves
*Chamberlin, Theory of Monopolistic Competition, Ch. II & Appendix B, pp. 190-93.
Harrod, Theories of Imperfect Competition (get article)

On Cobweb Adjustment

*M. Ezekiel “The Cobweb Theorem” QJE, Feb. 1938
*N. W. Buchanan “On the Cobweb Theorem” JPE, Feb 1939

Empirical Analysis

(Optional) Joel Dean, “Statistical Investigation of Costs with Especial Reference to Marginal Costs”, Supplement to 1936, U. of C. Journal of Business.
*Stigler, “The Limitations of Statistical Demand Curves,” J. of Am. Stat. Assn. Sept 1939, pp. 469-81

Austrian Theory of Value

*Smart, Intro. to Theory of Value, pp. 64-83
*Wicksteed, Commonsense of P.E. Robbins edition Intro. Vol. I p. XX, Vol. II, pp. 784-88

Joint Demand & Joint Supply.

*Marshall, Bk. V, Ch. 6 & Math Appendix H

Monopoly Value.

*Marshall Bk. V., Ch. 14

Distribution Theory

*Distribution theory. Marshall, Bk. VI, Ch’s 1 & 2
J.B. Clark, Dist. of Wealth. Preface & chapters 1, 7, 8.

Some items mentioned as suggested readings

Cf. A. L. Meyers. Elements of Modern Economics (1941 ed.), Ch. V on Indifference Curves.
or *Boulding Economic Analysis, [Ch. 30 Advanced Theory of Consumption]

Cf. Hans Staehle. Elasticity of Demand & Social Welfare. QJE, Feb. 1940.

Betterman, Elasticity of Supply Am. Ec. Rev. 1934, pp. 417 ff. Better: R. F. Fowler “The diagrammatical representation of elasticity of supply” Economica, May 1938.

Cf. p. 24 of Viner article on conflict between English & Austrian schools.

Cf. Ch. 23 Boulding

Halevy, Westminister Review

 

Not recorded as assignments in lecture notes,
but reading notes were taken by Kaplan

*F. H. Knight. “Demand” in Encyclopedia of Soc. Science.

Marshall

*Book III, Ch. I, II, III, IV, V, VI, Note III in math appendix. Ch. III A, Ch. IV B., Note IV
*Book V, Ch 1 Note A, B
*Book V, Ch. 2. Note A, B
*Book V, Ch. 3. Note A, B, C
*Book V, Ch. IV
*Book V, Ch. 5, Note A, B, C, D, E, F
*Book V, Ch. 6, Note. A, B, C, D, E, F, G, H, I, J, K
*Book V, Ch. VI, mathematical note XIV appended to note D.

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Course Exams

ECONOMICS 301
[Perhaps midterm: Kaplan answers only for 1-3]

Comment briefly on each of the following passages (explanation, justification, disproof, qualification, as may be appropriate).

  1. “It is not the case that an increased demand for mutton must in the long run necessarily operate to lower the price of wool. An increased demand for mutton will stimulate sheep farming, but it will also stimulate the substitution of crossbred [mutton type] for merino [wool type] breeds; and the resultant of these two opposite tendencies is logically indeterminate.”
  2. “When Consols are at 93½ , and business in in a tranquil state, it matters not how many buyers of these securities there are at 93, or sellers at 94. They are really off the market. Those only are operative who may be made to buy or sell by a rise or a fall of an eighth. The question is, whether the price shall remain at 93½, or rise to 93 5/8, or fall to 93 3/8. This is determined by a very few persons and by the sale or purchase of very small amounts.”
  3. “The degree of monopoly control by a seller equals the degree by which price exceeds marginal revenue.”
  4. “The degree of monopoly control by an employer as employer equals the degree by which the value of the marginal product of labor exceeds the marginal supply price of labor.”
  5. “Where it is the case that people would not give as large a total sum for a larger quantity of an article than for a smaller, this would be expressed geometrically by saying that the demand curve would cut negatively a rectangular hyperbola.” [negatively means cut from above]
  6. “The fact that supplying labor with better or more instruments results in an increase in output has sometimes led to the conclusion that capital is productive, a phrase which must be used with care. The strictly accurate statement is that labor applied in some ways is more productive than labor applied in other ways. Tools and machinery, buildings and materials, are themselves made by labor, and represent an intermediate stage in the application of labor. Capital as such is not an independent factor in production, and there is no separate productiveness of capital.”

 

 

ECONOMICS 301
Thursday [December 18, 1941]

Time: 1 hour.

  1. a. If elasticity of demand is unity, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 50 per cent?
    b. If elasticity of demand is two, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 25 per cent?
    c. “Since elasticity of demand measures variations in quantity demanded divided by variations in price, the elasticity of the demand for anything will be seven times as large for seven similar demanders taken together as it is for one.” Comment.
  2. Discuss the probable shapes for a particular plant of its short-run and its long-run average cost curves, and given these curves, explain the derivation of the corresponding marginal cost curves.
  3. On what grounds can it be held that in any important industry, increase in output is in the static long-run likely to be subject to conditions of increasing cost? Give and discuss the arguments which have been presented in support of different views.

 

ECONOMICS 301
Friday [December 19, 1941]

Time: 1 hour.

  1. Suppose that a single monopolist takes charge of an industry which has hitherto been in the hands of a large number of independent producers and which makes extensive use of a specialized type of labor. Give an account of the factors which will determine the effect of the change on (a) the industry’s output, and (b) the volume of employment of labor by the industry.
  2. A power monopoly, operating within the range where there are net internal economies of large-scale production sells current for both industrial and domestic use. The distribution costs on the latter are 20 cents per unit higher than for the former. Given: (a) the industrial demand schedule for current; (b) the domestic demand schedule for current; (c) the average cost schedule for generating current plus distributing it to industrial users.
    What rates should be charged to each type of customer to maximize the net income of the company?
  3. a. What conditions are necessary if the demand curves for particular firms in an industry are to have negative inclinations, but without any net monopoly profits?
    b. Are these conditions compatible with long-run equilibrium?

 

Source: The University of Chicago Archives. Norman M. Kaplan Papers, Box 4, Folder 1.

Image Source: Image Source: University of Chicago Photographic Archive, apf1-08490, Special Collections Research Center, University of Chicago Library.

 

Categories
Chicago Suggested Reading

Chicago. History of Economic Thought. Frank Knight, 1946

This is now the fifth course reading list  I have posted from the valuable collection of University of Chicago lecture notes taken by the economist Norman Kaplan. The other four syllabi are from courses taught by Douglas, Friedman, Lange, and Mints. Today we have the “Working Bibliography” that Frank Knight provided students taking his graduate course on the history of economic thought. I have managed to add a good number of links to the items he cited just as I have for the analogous course offered at Harvard by Joseph Schumpeter in 1940.

Incidentally, the distinguished economic historian Stanley Engerman is the person to whom we all owe an enormous debt of gratitude. Professor Engerman was a colleague and friend of Norman Kaplan at the University of Rochester. After Kaplan’s death Engerman helped sort through the papers left in his deceased colleague’s office, spotted the extraordinary collection of extensive student notes for Kaplan’s years at the University of Chicago and then had the notes shipped to the University of Chicago Archives. 

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[Course Announcement]

[Economics] 302. History of Economic Thought. Brief survey of the whole field of economic thought and a more intensive study of the “classical school” of British economists, whose doctrines are studied in relation to the problems and discussions of today. Prereq: Econ 301 or equiv. Win: TuThu 3:30-5; Knight.

 

Source:  University of Chicago, Announcements–The College and the Divisions, Sessions of 1945-1946, p. 216.

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ECONOMICS 302
HISTORY OF ECONOMIC THOUGHT
Winter 1946

Working Bibliography

General Character of the Course: A very brief survey of economic thought prior to the “classical school,” with chief attention devoted to the latter, especially to the price and distribution theory of Smith, Ricardo, Senior and Mill. Limited reference to Historical or Socialistic Schools. Matter outside the classical doctrine to be obtained chiefly from reading.

General Works (“Manuals”)

Ferguson, John M., Landmarks of Economic Thought.

Gray, Alexander, The Development of Economic Doctrine.

Two recent books very readable, and excellent within their scope. Gray has nothing on the historical schools. Neither is adequate on the classical writers.

 

Roll, Erich, History of Economic Thought. Somewhat Marxist slant.

Haney, L. H., History of Economic Thought. The fullest book covering the field; table of contents gives a fairly good arrangement of authors into groups or tendencies.
[1920 edition]

Ingram, J. K., A History of Political Economy. Briefer than Haney, and usable.

Spann, O., History of Economics. Translated from the German. Valuable for its intense opposition to the viewpoint of the classical school in favor of an organismic or universalistic standpoint. [Original: Othmar Spann, Die Haupttheorien der Volkswirtschaftslehre, 17th ed. 1928.]

Schumpeter, Joseph, Epochen der Dogmen- und Methodengeschichte, contained in Grundriss der Sozialökonomik Vol. I. [English translation]

Oncken, A. Geschichte der National Ökonomie. (Down to Adam Smith).

Gide, C., and Rist, C., History of Economic Doctrines (in French, or Translated from the French). (Begins with the Physiocrats). A competent but uninspired book. Emphasis on French work and on the socialistic schools.

Scott, William A., The Development of Economics. Covers modern period, beginning with background of classical economics. Excellent summaries, notable omissions (esp. Mathematical economists).

Whittaker, Edmund, A History of Economic Ideas. The best book in the field in content but massive, confusing, and repetitious through organization on the topical principle. First half deals with institutional and intellectual history rather than analytical economic thought. [Cf. his Schools and Streams of Economic Thought. Chicago: Rand McNally, 1960.]

Heimann, Eduard, History of Economic Doctrines. An Introduction to Economic Theory. Oxford University Press, 1945. Pp. ix, 263 (245). More introduction than history.

Salin, Edgar, Geschichte der Volkswirtschaftslehre. Covers the field briefly in an interpretive, historical-philosophical manner.

Encyclopedias; esp. Palgrave, Dictionary of Political Economy. (Ed. Henry Higgs 1926) and the Encyclopedia of the Social Sciences; on men and movements, and especially, Bibliographies. [Palgrave, 1912-1915.  Vol I (A-E), Vol II (F-M), Vol III (N-Z)]

See Bibliographical Notes in Haney (above) 3d Revised Edition, 1936, pp. 803-809.

 

On the Whole Period before the Classical School

Monroe, A. E. Early Economic Thought. Lengthy excerpts from some twenty important writers.

Oncken, A. See under General Works.

Sewall, H. R. The Theory of Value before Adam Smith, Publications of the American Economic Association, 1901.

Dunning, W. A., History of Political Theories, Ancient and Modern; also ibid. From Luther to Montesquieu. (Pre-classical economic thought being essentially political thought.)

 

Greco-Roman Economics

Simey, Miss E., article entitled “Economic Theory among the Greeks and Romans.” Economic Review, 1900. Copies on reserve. Best short account.

Laistner, M. L. W., Greek Economics. Valuable introduction and excerpts.

Calhoun, G. M., Business Life of Ancient Athens. Introduction and text valuable for background.

 

Medieval

Ashley, W. J. English Economic History and Theory, Vol. 1, pt. I, Chap. 3, and Vol. I, Pt. II, Chap. 6. Best general account.

O’Brien, Geo., An Essay on Medieval Economic Teaching. Highly important, especially because written from a Catholic point of view.

Tawney, R. H., Religion and the Rise of Capitalism. Chapter One, on The Medieval Background

 

Mercantilism

Heckscher, Eli F., Mercantilism, 2 vols. [Volume One; Volume Two]

Horrocks, J. W., A Short History of Mercantilism.

Schmoller, Gustav, The Mercantile System. Ashley Economic Classics. Invaluable also as a specimen of the German historical economics. Inquire at desk. E11.

Ashley, W. J. The Tory Origin of Free Trade Policy, in the Quarterly Journal of Economics, Vol. 11. Also in Surveys Historical and Economic.

Johnson, E. A. J. The Predecessors of Adam Smith.

Mun, Thomas, England’s Treasure by Forraign Trade. Ashley Economic Classics

Furniss, E. S., The Position of the Laborer in a System of Nationalism.

Viner, J., English Theories of Foreign Trade before Adam Smith, in Journal of Political Economy, Vol. 38, nos. 3 and 4. Reprinted in Studies in the Theory of International Trade, Harpers, 1937.

 

Physiocrats
(Given very little attention in this course.)

Higgs, Henry, The Physiocrats.

Ware, Norman, article on “The Physiocrats” in American Economic Review, 1931.

Bloomfield, Arthur I., Foreign Trade Doctrines of the Physiocrats. American Economic Review, Volume XXVIII, no. 4, December 1938 (Reprint on Reserve).

Turgot, A. R. J., Formation and Distribution of Riches. (Ashley Economic Classics.)

 

Classical School

Whitaker, A. C., Labor Theory of Value in English Political Economy. Nearly essential, if obtainable (Purchase).

Bowley, Marian, Nassau Senior and Classical Economics (Purchase, alternative to Whitaker). Better, but more difficult.

Cannan, Edwin, Theories of Production and Distribution. Valuable, but laborious reading.

Cannan, Edwin, Review of Economic Theory. Used selectively, more available than his other book.

Taussig, F. W. Wages and Capital (London School Reprint).

Knight, F. H. The Ricardian Theory of Production and Distribution. Reprint from the Canadian Journal of Economics and Political Science.

Cannan, Edwin, (ed.), Lectures of Adam Smith.

Smith, Adam, Wealth of Nations.  Full text, Everyman’s Library (2 vols.) or Modern Library (Reprint of Cannan edition—1 vol.) most available. Abridged edition edited by W. J. Ashley gives portions covered in the course conveniently in one small volume.  Cannan edition (2 vols.) the definitive edition, but expensive and bulky for class use.

Ricardo, David, Principles of Political Economy. Available in Everyman’s Library (1 vol.)  Gonner edition best. (London, C. Bell and Sons: Bohn’s Libraries). [Sraffa edition]

Senior, N. W., Outline of Political Economy. Reprinted 1938, Allen and Unwin.

Mill, J. S., Principles of Political Economy. Ashley ed., Longmans, 1 vol.

 

Subjective Value or Marginal Utility School

Smart, Wm., Introduction to the Theory of Value.

Jevons, W. S. Theory of Political Economy.

Wieser, F., Natural Value.

Smart’s prefaces to Böhm-Bawerk’s two main volumes and to Wieser, Natural Value.

Böhm-Bawerk, Capital and Interest and Positive Theory of Capital.

Weinberger, Otto. Die Grenznutzenschule.

Mises, Ludwig, Bemerkungen zum Grundproblem der subjektivistischen Wertlehre, contained in Archiv für Sozialwissenschaft und Sozialpolitik, Band 59, Heft 1.

 

Historical and Institutional and Socialistic Schools

See articles in Palgrave’s Dictionary of Political Economy and in the Encyclopedia of the Social Sciences.

 

 

Source: University of Chicago Archives. Norman Maurice Kaplan Papers. Box 1, Folder 10.

Image Source:  University of Chicago Photographic Archive, apf1-03516, Special Collections Research Center, University of Chicago Library.

Categories
Chicago Courses

Chicago. Imperfect Competition (Econ 307) Reading List. Lange, 1941

Today’s posting  comes from Norman M. Kaplan’s student notes from his graduate studies: a carbon copy of the reading list for Oskar Lange’s course at the University of Chicago given in the Autumn Quarter of 1941.

The Course description from the 1941-42 course announcements:

307. Imperfect Competition.—A study of price formation and production under various transitional forms between perfect competition and pure monopoly, such as monopolistic and monopsonistic competition, noncompeting groups, oligopoly and bilateral monopoly. The problem of equilibrium under such forms. Noncompeting groups and social structure. Application of the theory to the study of distribution of incomes, collective bargaining, excess capacity, price rigidity, and business cycles. Imperfect competition and economic policy. Prerequisite: Economics 301 or equivalent. Summer, 9:00; Autumn, 1:30; Lange.

Source: University of Chicago. Announcements of the College and the Divisions for the Sessions of 1941. Vol. XLI, No. 10 (April 25, 1941), p. 307.

_______________________________________

ECONOMICS 307
Autumn, 1941

 

E. Chamberlin. The Theory of Monopolistic Competition

Joan Robinson. Economics of Imperfect Competition

Roy F. Harrod. “Doctrines of Imperfect Competition,” QJE (May 1934)

G. Stigler. “Notes on the Theory of Duopoly,” JPE (Sept. 1940)

A. C. Pigou. Economics of Stationary States. Chap. 14-19, 23, 40-44

R. Triffin. Monopolistic Competition and General Equilibrium Theory.

Testimony of Frank Fetter before TNEC. Hearings before TNEC, Part 5

N. Kalder. “The Equilibirum of the Firm” Econ. J. (1934)

__________. “Monopolistic Competition and Excess Capacity,” Economica (Feb 1935)

P. Sweezy. “Demand under Conditions of Oligopoly,” JPE (Aug 1939)

R. L. Hall and C. J. Hitch. Price Theory and Business Behavior. Oxford Economic Papers No. 2, May, 1939

M. W. Reder. “Inter-Temporal Relations of Demand and Supply within the Firm,” Canadian J. of Economics and Political Science (Feb 1941)

H. Smith. “Advertising Cost and Equilibrium,” RES (Oct 1934)

G. Tintner. “Note on the Problem of Bilateral Monopoly,” JPE (1939)

M. Bronfenbrenner. “The Economics of Collective Bargaining,” QJE (Aug. 1939

Turner. “Theory of Industrial Disputes,” RES (Feb 1934)

G. Tintner. “Note on the Problem of Bilateral Monopoly,” JPE (1939)

M. Bronfenbrenner. “The Economics of Collective Bargaining,” QJE (Aug. 1939)

Turner. “Theory of Industrial Disputes,” RES (Feb 1934)

A. P. Lerner. “The Concept of Monopoly and Measurement of Monopoly Power,” RES (Feb 1934)

____________. “From Vulgar Political Economy to Vulgar Marxism,” JPE (Aug 1939)

M. Kalecki. Studies in Theory of Economic Fluctuations. Chap. 1.

 

Optional

J. E. Meade. An Introduction to Economic Analysis and Policy, part II

E. A. G. Robinson. Structure of Competitive Industry.

F. Zeuthen. Problems of Monopoly and Economic Warfare, part 4.

F. Harrod. Price and Cost in Entrepreneur’s Policy. Oxford Economic Papers No. 2, May, 1939.

S. Nelson and W. G. Keim. Price Behavior and Business Policy. TNEC Mon. No. 1

Report of the Federal Trade Commission on Monopolistic Practices in Industry, Hearings before TNEC, part 5A

R. Triffin. “Monopoly in Particular and General Equilibrium Economics,” Econometrica (April 1941)

M. W. Reder. “Monopolistic Competition and the Stability Conditions,” RES (Feb 1941)

R. Shone. “Selling Costs,” RES (June 1935)

E. Hoover. “Spatial Price Discrimination,” RES (June 1937)

J. R. Hicks. “The Theory of Monopoly,” Econometrica, 1935

H. Hotelling. “Stability in Competition,” Econ. J., 1929

M. Bronfenbrenner. “Application of the Discontinuous Oligopoly Demand Curve,” JPE (June 1940)

R. H. Coase. “Some Notes on Monopoly Price,” RES (Oct. 1937)

Structure of the American Economy, chaps. 7, 8, 9

J. Robinson. “What is Perfect Competition?” QJE, 1934

E. Chamberlin. “Monopolistic or Imperfect Competition,” QJE, 1937

N. Kaldor. “Professor Chamberlin on Monopolistic and Imperfect Competition,” QJE, 1938

R. F. Kahn. “Some Notes on Ideal Output,” Econ. J, 1935

_______________________________________

Source: Kaplan, Norman Maurice. Papers, Box 2, Folder 7, Special Collections Research Center, University of Chicago Library

Image Source: Hoover Institution Archives. Papers of Yzgmunt Berling, Box 2. Lange is the civilian in the front left, soon to be General Yzgmunt Berling is the uniformed man on the right. The picture is from 1943.

 

 

Categories
Chicago Courses

Chicago. Price Theory. Econ 300 A&B. Friedman Readings ca 1947

 

 

When compared to the list of Milton Friedman’s reading assignments for Economics 300 A&B for 1948, we note that the following handwritten list of readings taken from the student notes of Norman M. Kaplan who attended both 300A and 300B during the Winter Quarter 1947 do not include the 1947 items found in the 1948 list:

Pigou, A. C., “Economic Progress in a Stable Environment,” Economica, 1947, pp. 180-90.

*Dennison, S. R., “The Problem of Bigness,” Cambridge Journal, Nov. 1947.

This leads me to conclude that we indeed have the assigned Winter Quarter readings for Friedman’s second iteration of Economics 300A and his first iteration of Economics 300B. There is much more in Kaplan’s student notes, but this is enough for one posting.

______________________________

[undated, handwritten copy by Norman M. Kaplan]

Friedman’s readings 300 A&B

 

F. H. Knight, “Social Econ. Organization”; “The Price System & the Econ. Process” (in The Economic Organization, pp. 1-37)

 

Marshall

Bk III, ch. 2, 3, 4,5
Bk V, ch. 1,2,3,4,5,12, Appendix H
Bk IV, ch. 1, 2, 3
Bk V, ch 6
Bk VI, ch. 1-5           (ch. 1,2 done)

 

H. Schultz, Meaning of Statistical Demand Curves, pp. 1-10
E.J. Working, “What do Statistical ‘Demand Curves’ Show?”

 

Knight, Risk, Uncertainty, and Profit, ch 3
Hicks, J. R., Value and Capital, Part I (pp 11-37)
W. A. Wallis & M. Friedman, “Empirical Derivation of Indifference Functions” (in Lange, Studies in Math. Econ. & Econometrics, U of C Press)

 

A. L. Myers, Elements of Modern Economics, ch 5, 7, 8, 9
J. Robinson, Econ. of Imperfect Competition, ch 2 (in 209 notes)
J. M. Clark, Econ. of Overhead Costs, ch 9
J. Viner, “Cost Curves and Supply Curves”
E. Chamberlin, Theory of Monopolistic Competition, ch 3, secs. 1, 4, 5, 6; ch 5
R. F. Harrod, “Doctrines of Imperfect Competition”, QJE, May 1934, esp. sec. 1, pp. 442-61

 

J. B. Clark, Distr. of Wealth, Preface, ch 1, 7, 8, 11, 12 (in 209 notes), 13, 23

 

J. S. Mill, Prin of Pol Econ, Book II, ch 14
Hicks, Theory of Wages, ch 1-6 (in 209 notes)
Smith, Wealth of Nations, Bk I, ch 10

 

Friedman and Kuznets, Income from Independent Professional Practice,

Preface, pp. v to x,
ch 3, sec 3, pp. 81-95,
ch 4, sect 2, pp. 118-137,
app to ch. 4, sec 1 & 3, pp 142-151, 155-61

 

F.H. Knight, “Interest” in Ethics of Competition
Keynes, GT [General Theory], ch 11-14

 

Cassell, Fundamental Thoughts in Econ, ch. 1, 2,3
[____], The Theory of Social Economy, ch 4

 

Hicks, “Keynes & the Classics”, Econometrica, Apr 1937, pp. 147-159
Modigliani, “Liquidity Preference & the Theory of Interest & Money,” Econometrica, Jan 1944, esp. Part I, sec. 1 through 9, sec 11 through 17, part II, sec 21
Pigou, “Classical Stationary State,” Econ Journal, Dec 1943, pp. 343-51

 

Source: Kaplan, Norman Maurice. Papers, Box 1, Folder 8, Special Collections Research Center, University of Chicago Library

Image Source: The Mont Pelerin Society webpage “About MPS”.

 

Categories
Chicago Courses Syllabus

Chicago. Banking Theory and Monetary Policy. Mints, 1942

“Lloyd Mints, though less brilliant and exciting than Viner, served the same function for us in monetary theory that Viner did in price theory. His Economics 330 and 331 introduced us to the organic core of monetary theory. Like Viner, Mints concentrated on the fundamentals, not on institutional arrangements. He was thorough and meticulous in his presentations and, again, like Viner, assigned us readings ranging over a wide variety of views.”
Rose Friedman in Milton and Rose D. Friedman, Two Lucky People: Memoirs (1998), p. 38.

________________________________________________

E: MONEY, BANKING, AND BUSINESS CYCLES

  1. Money.—An examination of various theories of the factors which determine the value of money in the short and in the long run. Prerequisite: Economics 230 [Mints’ course, Introduction to Money and Banking] or equivalent. Summer, 1:30; Autumn, 2:30; Mints.
  1. Banking Theory and Monetary Policy.—Theories upon which the Federal Reserve Act is based; the validity of these theories; and the possible objectives and techniques of central-bank and monetary management. Prerequisite: Same as for Economics 330. Summer, Winter, 2:30, Mints.

Source: Announcements, The University of Chicago, Vol. XLI, No. 10 (April 25, 1941). The College and the Divisions for the Sessions of 1941-42, p. 310.

________________________________________________

NOTE: The following reading list for Lloyd Wynn Mints’ course “Banking and Monetary Policy” (Winter Quarter of 1942) was hand-marked by Norman Kaplan with sufficient detail to warrant including his notes with the original reading list. Everything in italics and within square brackets, [], are Kaplan’s additions. A few non-italicized corrections/comments of mine are inside parentheses within the square brackets [()].

The identical printed reading list can be found at the Hoover Institution Archives, Milton Friedman’s papers (Box 5, Folder 12: Student years), together with other course reading lists. Since Milton Friedman himself never took this course according to his own course records and his copy of the reading list for Economics 331 definitely looks to be of a later vintage (at least less worn) from that of his reading list for Economics 330, we cannot conclude with any certainty that the reading list remained completely unchanged for the entire decade 1932-42.

________________________________________________

ECONOMICS 331
BANKING AND MONETARY POLICY

[Lloyd Mints, University of Chicago, Winter Quarter 1942]

  1. Theoretical and historical foundations of the Federal Reserve Act
    1. Theoretical
      1. Smith, The Wealth of Nations, part of Book II, chapter 2; in Everyman’s edition, pages 266-286 [in Vol I; for sake of completeness, Vol II]; in Cannan’s edition, pages 285-304
        [Read]
      2. Ricardo, Reply to Mr. Bosanquet’s Practical Observations on the Report of the Bullion Committee, chapter 5; in Gonner’s edition of Ricardo’s essays, pages 113-119
      3. Mill, Principles of Political Economy, Book III, chapter 24
      4. Scott, Money and Banking; in the second edition, pages 147-176
      5. Willis, The Federal Reserve, pages 46-84, 176-191
      6. Warburg, The Discount System in Europe (The National Monetary Commission)
      7. Dunbar, The Theory and History of Banking, chapters 3, 5, and 6
      8. Agger, Organized Banking, pages 31-33, 37-63, 140-174
        [Read pp. 31-33]
      9. Conant, The Principles of Money and Banking, Vol. II, pages 17-110, 143-163
      10. Moulton, Commercial Banking and Capital Formation, in the Journal of Political Economy, Vol. 26 (1918), pages 705-731
      11. Cannan, The Meaning of Bank Deposits, in Economica for January, 1921, pages 28-36
      12. Phillips, Bank Credit, chapter 3
        [Read]
      13. Angell and Ficek, The Expansion of Bank Credit, in the Journal of Political Economy, Vol. 41 (1933), pages 1-32, 152-193
        [Read Viner, Trade, pp. 218-288]
    2. Historical: The development of the Bank of England and the London money market
      1. Dunbar, The Theory and History of Banking, the chapter on the Bank of England
        [Read]
      2. Feavearyear, The Pound Sterling, A History of English Money
      3. Andreades, A History of the Bank of England
      4. Bagehot, Lombard Street, chapters 3, 7, 9-12
      5. Whitaker, Foreign Exchange, the chapter on “Foreign Money Market Factors”; in the first edition, chapter 8
        [Read]
      6. Leaf, Banking, chapters 3, 7 and 8
      7. Willis and Beckhart, Foreign Banking Systems, chapter 17
      8. Report of the Committee on Finance and Industry (The Macmillan Report), chapter 4
      9. The Report of the Bullion Committee; to be found in “The Paper Pound of 1797-1821,” edited by Cannan
        [Read]
      10. Gregory, the introduction to the reprint of the “History of Prices,” by Tooke and Newmarch; especially pages 69-91
    3. Historical: the development of banking in the United States before 1913
      1. Dewey, State Banking before the Civil War; and Chaddock, the Safety Fund Banking System in New York, 1829-1866 (The National Monetary Commission)
      2. Hepburn, History of Currency in the United States
      3. Noyes, The War Period of American Finance
      4. Sprague, Crises Under the National Banking System, chapter 1
        [*Read]
      5. Davis, Origin of the National Banking System
      6. The appropriate chapters in any good economic history of the United States
        [Read]
      7. Miller, Banking Theories in the United States before 1860
  1. The organization and operation of the Federal Reserve system
      1. Hardy, Credit Policies of the Federal Reserve System
        [Read]
      2. Burgess, The Reserve Banks and the Money Market
        [Read]
      3. Currie, The Suppply and Control of Money in the United States
        [Read a little if you have time]
      4. Willis and Steiner, Federal Reserve Banking Practice
        [Omit]
      5. Annual Report of the Federal Reserve Board for 1923, pages 3-39
        [*Read. Written by Walter W. Stewart, Mints thinks. Represents position of old Board which was homogeneous & consistent until 1934.]
      6. Woodworth, Supplement to Kilborne’s “Principles of Money and Banking” (1934; on recent developments)
      7. The Federal Reserve Bulletin for September, 1935 (the banking act of 1935)
      8. Huffman, Expansion Possibilities of Our Banking System, in the Journal of Political Economy, Vol. 34 (1926), pages 717-741.
        [Read if you want to]
        [added: Willis, Federal Reserve (not Res. System, a later book cf. A.5 for pages) 1st 2 or 3 chapters on what it was they were interested in in getting banking reform]
  1. The Problem of Monetary Policy
      1. Keynes, The Means to Prosperity
        [Omit]
      2. ________, Monetary Reform, pages 167-222[Read, not so important]
      3. ________, A Treatise on Money, Vol. I, pages 185-220, Vol. II, pages 211-408
        [Omit]
      4. Hawtrey, Trade Depression and the Way Out; in the first edition, pages 68-84
        [Read this or ch. 8 (of The Art of Central Banking by Hawtrey)]
      5. ________, The Art of Central Banking, chapters 5,7, and 8
        [(Read) ch. 8 or pp. 68-84 (of Trade Depression and the Way Out by Hawtrey)]
      6. Whittlesey, Banking and the New Deal (Public Policy Pamphlet No. 16)
        [Read if you want to]
      7. Fisher, 100% Money
        [Read if you don’t understand 100% money]
      8. Gayer, Monetary Policy and Economic Stabilization
        [Read if you want to]
      9. Report of the Committee on Finance and Industry (the Macmillan Report)
        [Read if you want to]
      10. Simons, Currency Systems and Commercial Policy; in the Report of the Commission of Inquiry into National Policy in International Economic Relations, pages 344-349
        [Read]
      11. ________, Rules versus Authorities in Monetary Policy, in the Journal of Political Economy for February, 1936
        [Read Esp.]
      12. ________, A Positive Program for Laissez Faire (Public Policy Pamphlet No. 15)
        [Read]
      13. Gregory, The Gold Standard and its Future
        [Read if you want to]
      14. Hansen, Economic Stabilization in an Unbalanced World, pages 277-323
        [Read]
      15. Robertson, Banking Policy and the Price Level
        [ Written as a reaction against stable price level protagonists.]
      16. ________, Theories of Banking Policy, in “Economic Essays and Addresses,” by Pigou and Robertson, pages 95-115
        [Also in Robertson’s Essays in Monetary Theory]
      17. Harrod, The Expansion of Credit in an Advancing Community, in Economica, New Series, Vol. I (1934), pages 287-299
        [Omit]
      18. Durbin, The Problem of Credit Policy, pages 80-87, 109-241
        [Omit]
      19. Mahr, Monetary Stability (Public Policy Pamphlet No. 9)
        [Omit]
      20. Cassel, A Theory of Social Economy; in the McCabe translation, pages 414-419, 473-481
        [You might read this if you want to]

[Read these:

Henry Villard, “Federal Reserve System’s Monetary Policy in 1931 & 1932.” JPE (To be read in connection with II)

L.V. Chandler, “Monopolistic Elements in Commercial Banking” JPE
G. L. Bach, “Monetary Policy & the Price Level”, typewritten condensation of doctoral dissertation

Optional on gold vs. Paper

C. R. Whittlesy, International Monetary Issues, chs. 4-7 (for paper)
F. A. Hayek, Monetary Nat’lism & Internat’l Stability (for gold)
Gregory, pro-gold standard
Heilperin (a book Mints can’t remember published in last 3 years)

You should read some in:

Hansen, Fiscal Policy & Business Cycles, ch. 15 esp.]

________________________________________________

Source: Kaplan, Norman Maurice. Papers, [Box 3, Folder 6], Special Collections Research Center, University of Chicago Library.

Image Source: From a Japanese webpage that certainly appears to be about the Chicago School(s) of Economics. Here is the link to the picture of Mints.

 

Categories
Chicago Courses Economists Socialism Syllabus

Chicago Economics. Economics 354. Types of Econ Organization. Douglas. 1938

This is the Chicago version of the course taught at Harvard by Cummings, Carver and then Mason.

The Spring Quarter  of 1938 began March 28. The lecture notes taken by Norman M. Kaplan are for this course that met Tuesdays and Thursdays with his notes dated Mar 29, Mar 31, Apr 5, Apr 12, Apr 19, Apr 21, Apr 26, Apr 28, May 3, May 5, May 10, May 12. Hence we can be certain that the following (undated) syllabus with bibliography was for the Spring, 1938 course taught by Paul H. Douglas.

To those with an eye on contemporary U.S. politics: examining this reading list, one wonders if a professor like this today could imagine getting elected into the U.S. Senate! Perhaps Elizabeth Warren fits the bill but the bench looks pretty shallow…

________________________

H. SOCIAL DIRECTION AND CONTROL OF ECONOMIC ACTIVITY
[…]

  1. Types of Economic Organization.—An examination of the various forms of economic organization that have been proposed, including the utopias, individualism, Marxian socialism, collectivism, the single tax, syndicalism, guild socialism, communism, capitalism, and fascism. Prerequisite: Economics 209 [Intermediate Economic Theory: “A course designed for undergraduates majoring in Economics who have completed the other Departmental requirements for the degree and for graduate students with limited training in systematic theory. It deals with the factors controlling production, value and relative prices, and distribution.” Taught by Paul Douglas (Winter)], or its equivalent, Spring, Tu., Th., 3:30-5:30, Douglas.

Source: Announcements. The University of Chicago. The College and the Divisions for the Sessions of 1937-1938. p. 307.

________________________

Topics and Assigned Reading for Economics 354
Types of Economic Organization

[Spring Quarter, 1938]

The three main divisions of the course, with the basic assigned reading to be covered under each, are as follows:

I.  The Development of Utopian Thought – (2 weeks.)

  1. Plato and the “Republic.”
  2. Thomas More’s “Utopia.”
  3. The economic doctrines and activities of Robert Owen.
  4. French Utopian Socialism: Fourier, Cabet, and Saint-Simon (omitted 1937).

Assigned reading: (1) Plato, The Republic: Sections 368-374 of Book II, Sections 412-417 of Book III, Books IV and V entire; (2) More’s Utopia, Book II; (3), Owen’s Autobiography, or one of the better lives of Owen, such as those by Podmore [vol. 1, vol. 2], Cole and McCabe. [Handwritten addition: “Aristotle, Politics, Bk. II (1st 6 paragraphs)”]

Supplementary reading: 1) Aristotle, Politics, Sections 1-7; (2) Ernest Barker, Greek Political Thought—Plato; (3) Chambers, Thomas More; (4) Campenalla, The City of the Sun; (5) Bacon, New Atlantis; (6) Robert Owen, A New View of Society, etc.; (7) Charles Gide, Morceaux Choisis de Charles Fourier; (8) Cabet, Voyage en Icarie; (9) Bellamy, Looking Backward; (10) William Morris, News from Nowhere.

 

II. The Economic and Social Doctrines of Karl Marx (4 weeks)

  1. The differences between Marxism and Utopianism.
  2. The economic or materialistic interpretation of history.
  3. The labor theory of value; the theory of surplus value; and the alleged “great contradiction.”
  4. The theory of the final cataclysm.
  5. An appraisal of Marx’ thought.

Assigned reading: (1) Marx and Engels, Communist Manifesto; (2) Engels, Socialism—Utopian and Scientific; (3) Marx, Value, Price and Profit, sections VI-XIV; Marx, Capital, Vol. I, chapters I—sections 1 and 2, and A of section 3; VI, VII, VIII, IX, X, XI, XII, XVI, XVII, XIX; Vol. III, last pages of chapter VIII and chapter IX; Book I, chapters XXV and (XXXII).

Supplementary reading: (1) Marx Capital, Vol. I, chapter XV; (2) Rühle, Karl Marx, or Mehring, Life of Marx; 3) Marx, Contribution to a Critique of Political Economy; (4) Hook, Towards and Understanding of Karl Marx; (5) Joseph, Karl Marx’ Theory of Value [sic, The Labour Theory of Value in Karl Marx, 1923]; (6) Böhm-Bawerk, Karl Marx and the Close of His System; (7) Bernstein, Evolutionary Socialism. (8) De Man, Psychology of Socialism.

 

III. The development of Proposals and Movements for Organizing Economic and Social Life. (In the main, post-Marxian). (4 weeks)

  1. The theory and practice of capitalism.
  2. Collectivism.
  3. Anarchism, syndicalism and guild socialism.
  4. Cooperation.
  5. The Single Tax.
  6. Modern Communism.
  7. Fascism.

Because of reasons of time, topics 3,4 and 5 will be scantily treated and may indeed be omitted.

Assigned reading. The material on these topics is, of course, enormous. The best treatment of collectivism is given in Fabian Essays (1888) by Webb, Shaw, Wallas, etc., and in Bernard Shaw’s The Common Sense of Municipal Trading. On anarchism: Proudhon and Kropotkin are the most suggestive writers. On cooperation, Beatrice Potter’s (Mrs. Webb) The Consumers Cooperative Movement in Great Britain; Beatrice and Sydney Webb, The Consumers Cooperative Movement; Gide, Consumers Cooperative Societies; Childs, Sweden—The Middle Way; Howe, Denmark—The Cooperative Way; are excellent.

All students of communism should read Lenin, The State and Revolution; and the two-volume work by Beatrice and Sydney Webb, Soviet Communism. See also the new constitution of Russia, reprinted by the Carnegie Foundation for International Peace.

On fascism, see Finer, Mussolini’s Italy; Mussolini, “Fascism,” in the Italian Encyclopedia; and Hitler’s Mein Kampf, to be read if possible in the original German instead of the expurgated English and American editions.

The principles of liberalism are well stated in the writings of Jefferson; John Stuart Mill, Liberty; Representative Government, etc.; Wilson, The New Freedom; Brandeis, The Curse of Bigness; Franklin Roosevelt; etc.

Supplementary reading: (1) For an able criticism of socialism and a defense of individualism, see Ludwig von Mises, Socialism; (2) Beer, History of British Socialism; (3) Norman Thomas, America’s Way Out; (4) Sidney and Beatrice Webb, A Constitution for the Socialist Commonwealth of Great Britain; (5) Levine, Syndicalism in France; (6) Cole, Guild Socialism; (7) Henry George, Progress and Poverty, especially Books V, VI, VII, VIII and IX; (8) Trotsky, The Russian Revolution; (9) Chamberlin, The Russian Revolution; (10) Seldes, Sawdust Caesar; (11) Salvemini, Under the Axe of Fascism; (12) Heiden, Life of Hitler; (13) Heiden, History of National Socialism; (14) Florinsky, Fascism and National Socialism; (15) Schuman, Nazi Germany; (16) Strachey, The Coming Struggle for Power; (17) Davis (editor) Modern Social Movements.

A somewhat fuller bibliography is appended.

________________________

 

SELECTED BIBLIOGRAPHY FOR POLITICAL ECONOMY 354
TYPES OF ECONOMIC ORGANIZATION

(Best References Starred)

1. Utopian

More, Thomas. Utopia
*Plato, The Republic (Benjamin Jowett, Trans.)
Barker-Ernest. Greek Political Theory
Aristotle. The Politics
Latimore-More. English Reprints
Engels, Frederick. Socialism, Utopian and Scientific
*Bacon, Francis. New Atlantus
*Campenella, Tomasso. The City in the Sun
*Morley, Ideal Commonwealths
Andrae, Christian Opolis
Owen, R. D. Threading My Way
Lockwood. The New Harmony Movement
Herzler, J. O. History of Utopian Thought
Mumford, Lewis. The Story of Utopias
Cabet, Reise Nach Ikarien, V. G.
Wells, H. G. A Modern Utopia
Godwin, Wm. Enquiry Concerning Political Justice
Fourier, Chas. Theorie de l’Unite universelle; Le Nouveau Monde industrial
Saint-Simon, G. Oeuvres de Saint Simon et d’Enfantin
*Morris, William. News from Nowhere
Morris, William. A Dream of John Ball
*Howells, W. D. A Traveller from Altruria
*Ely, R. T. French and German Socialism
*Bellamy, E. Looking Backward
Podmore, Frank. Biography of Robert Owen
*Autobiography of Robert Owen
*Owen, Robert. The Book of the New Moral World
Guthrie, W. B. Socialism before the French Revolution
Peixottot, J. B. The French Revolution and Modern French Socialism
*Hillquit, Morris. History of Socialism in the United States
*Noyes, John Humphrey. A History of American Socialisms
*Nordhoff, Charles. The Communistic Societies of the United States
Hinds, William. American Communities
Shaw, Albert. Icaria –A Chapter in the History of Communism
Kent, Rev. Alexander. Cooperative Communities in the United Status, in Bulletin of Department of Labor, No. 35, July, 1901
Clark, Bertha. The Huterian Brethern. Journal of Political Economy, April and June 1921
Gide, Charles Fourier
Owen. New View of Society
McCabe. Robert Owen
Cole. Robert Owen
Chambers. Thomas More

2. The Economic Interpretation of History

*Marx and Engels. Communist Manifesto
*Marx, Karl. Revolution and Counter-Revolution
*Loria, Achille. Essays on the Materialistic Interpretation of History
*Marx, Karl. The Eighteenth Brumaire of Louis Bonaparte
Kautsky, K. The Class Struggle
Beard, C. A. Economic Interpretation of the Constitution
Beard, C. A. Economic Origins of Jeffersonian Democracy
Engels, Frederick. Socialism, Utopian and Scientific
Engels , Frederick. Condition of the Working Classes in England in 1844
Engels, Frederick. The Roots of the Socialist in Philosophy Feuerbach
Engels, Frederick. Landmarks of Scientific Socialism, Anti-Duhring
Simone, A. M. Class Struggles in America.
Simone, A. M. Social Forces in American History
*Seligman, E. R. A. The Economic Interpretation of History
Seligman, E. R. A. Essay on Problems of Readjustment after the War
Howe, F. C. Why War?
Brailsford, H. N. War of Steel and Gold
Hobson, J. A. Imperialism
Loria, A. Economic Causes of War
Croce, B. The Historical Materialism of Karl Marx
Ogburn, W. F. The Psychological Basis for the Economic Interpretation of History. Supp. Am. Econ. Rev. March 1919
Hansen, A. H. The Technological Interpretation of History. Quarterly Journal of Economics, November 1921
Marx, Karl. The Gotha Program
Marx, Karl. The Poverty of Philosophy
Earl, E. M. The War and The Bagdad Railway
D’Espagnel, P. The World’s Struggle for Oil
Woolf, L. S. Empire and Commerce in Africa
Woolf, L. S. Economic Imperialism
Morel, E.D. Red Rubber
Young, G. Nationalism and War in the Near East
Young, G. The Machinery of Diplomacy
Rai, Laypat, England’s Debt to India
Tawney, Religion and the Rise of Capitalism
S. Hook, Towards an Understanding of Karl Marx
Brailsford, Property or Peace

 

3. Marxian Economics

A.      Marx, Karl. Capital. 3 Vols.

*Marx, Karl. A Critique of Political Economy
*Marx, Karl. Value, Price, and Profit (Popular epitome of Marx’s Theories)
Aveling, Edward. The Student’s Marx
Hyndman, H. M. The Economics of Socialism
Correspondence of Karl Marx and Frederick Engels
**Rühle, Karl Marx
Mehring—Life of Marx
Meyer—Frederick Engels

B.    Pro-Marxian

*Untermann, Ernest. Marxian Economics
*Boudin, Louis. The Theoretical System of Karl Marx

C.     Anti-Marxian

*Bohm-Bawerk, E. Von. Karl Marx and the Close of His System
*Le Rossignol, J. E. Orthodox Socialism
Cross, I. B. Essentials of Socialism
*Skelton, O. D. Socialism, A Critical Analysis. Pp. 95-137
*Le Rossignol, J. E. What in Socialism?
Scott, J. R. Karl Marx on Value
Joseph. Labor Theory of Value in Karl Marx.

D.    Pre-Marxian Economic Theories

*Menger, Anton. The Right to the Full Produce of Labor. (A review of labor theories, and a belittling of Marx’s originality.)
*Lowenthal, Esther. The Ricardian Socialists
*Whitaker, A. O. The Labor Theory of Value
Beer, Max. A History of British Socialism, Vol. I, pp. 182-270
Gonner, E. C. K. The Social Philosophy of Rodbertus
Ricardo, David. Principles of Political Economy and Taxation

 

4. Marxian Predictions of the Economic Development of Capitalism

A.     Large-scale Industry

*Bernstein, E. Evolutionary Socialism
*Simkhovitch, V. G. Marxism vs. Socialism
*Rubinow, S. M. Was Marx Wrong?
Dewing, A. S. A Statistical Text of the Success of Consolidation, Quarterly Journal of Economics, Nov. 1921. Vol. XXXVI.
Berle and Means: The Modern Corporation.
Bernheim – Big Business

B.    Agriculture

Department of Agriculture: The Economic Basis of the Agricultural Adjustment Act
Bernstein, Simkhovitch and Robinow as above
Stewart, C. L. Land Tenure in the United States
Bogart, E. L. Farm Ownership in the United States, Jour. Pol. Econ., Vol. XVI
Simons, A. M. The American Farmer
David, Edward. Socialism and Land Wirtschaft
Benjamin. Socialists and the Agrarian Question, Jour. Pol. Econ., June, 1926

 

C.    Distribution of Wealth – (Marx’s Theories of Increasing Misery and the Disapperance of the Middle Class Considered)

(1) United States

*Nationa1 Bureau of Economic Research. Income in the United States
King, W. Wealth and Income of the People of the United States
Nearing, Scott. Income
Nearing, Scott. Financing the Wage-Earner’s Family
Streightoff, F. H. Distribution of Wealth in the United States
More, L. B. Wage Earner’s Budgets
Chapin, R. C. Standard of Living in New York City
Kennedy, J. C. Standard of Living in Stockyards District
Streightoff, F. H. Standard of Living of Industrial People in United States
Ryan, J. A. A Living Wage
Ryan, J. A. Distributive Justice. Economic Review, September 1921
Soule, George. The Productivity Factor in Wage Determination. American Economic Review: Supplement. 1925, pp. 129-40, Vol. 13. (1925)
Federal Trade Commission: National Wealth and Income
Nearing, Scott. Wages in the United States.
Federal Trade Commission, National Wealth and Income.
Leven, Moulton & Warburton. America’s Capacity to Consume
Douglas. Real wages in the United States, 1890-1926
Douglas and Dennison. The Movement of Money and Real Wages, 1926-1928
Houghteling. The Income and Standard of Living of the Unskilled Laborer in Chicago

(2) England

Stamp, J. C. British Incomes and Property
Rountree, B. S. Poverty – A Study of Town Life
Booth, Ch. A Summary of the Life and Labor of the People of London
Bowley. The Change in the Distribution of the National Income 1880-1913
Bowley, A. L. The Division of the Product of Industry
Stamp, J. C. Wealth and Taxable Capacity of Great Britain
Smith and others. A New Survey of London Life and Labour. 10 vols.
Clark. The National Income

(5) Other Countries

Bägge. Wages in Sweden. 1860-1930.
Kuczynski, J. Die Entwicklung der Lage der Arbeiterschaft, 1870-1933
Kuczynski, J. Löhne und Konjunktur in Deutschland, 1887-1932
Kuczynski, J. Die Entwicklung der Löhne in Frankreich und Belgien, 1895-1933.
Simiand, F. Le Salaire. 3 vols.

D.    Unemployment (The Industrial Reserve Army)

Pigou, A. C. Unemployment
Beveridge, W. C. Unemployment
Poyntz and Webb. Seasonal Trades
American Association of Labor Legislation. Unemployment survey, 1915.
Barnes, C. B. The Longshoremen
Webb, S. and B. The Minority Reports of the Poor Law Commission
Berridge, W. A. Cycles of Employment
Hobson, J. A. The Economics of Unemployment
Cole, G. D. H. Out-of-Work
Douglas and Director. The Problem of Unemployment

E.    Crises

Mitchell, W. C. Business Cycles
Jugler, C. A Brief History of Panic
Moore, H. L. Economic Cycles
*Rodbertus, K. J. Over Production and Crises. (Translated by Frank)
Foster and Catchings, Profits
Douglas. Controlling Depressions
Mills. Economic Tendencies in the United States
Hayek. Prices and Production
Strachey. The Nature Of Capitalist Crisis
Pigou. Industrial Fluctuations
Schumpeter. Theory of Economic Development
Martin. The Limited Market
Keynes—The General Theory of Employment, Interest, and Money.

 

5. The Socialist Movement in Various Countries

A.    General

Postgate, R. W. Revolution
*Laideer, H. W. Socialism in Thought and Action
*Kirkup, F. History of Socialism (authoritative and reliable)
Ensor, R. C. K. Modern Socialism (gives important extracts showing attitude of Socialists in different countries)
*Walling, Stokes, Hugan, Laidler. The Socialism of Today (invaluable study of present-day tendencies in all countries)
Postgate, R. W. The Workers International
Guillaume, J. L’Internationale, 4 vols.
Hunter, Robert. Violence and the Labor Movement
De Montgomery, B. G. British and Continental Labour Policy
Shadwell. The Socialist Movement, 2 vols.
Fainsod, International Socialism During the War

B.  Specific

(1) Germany

Russell, Bertrand. German Social Democracy
Dawson, W. H. Bismarck and State Socialism
Ely, R. T. French and German Socialism, pp. 156-244
Saunders, W. S. Trade Unionism in Germany

(2) France

Blanc, Louis, L‘Organization du Travail
Jaures, J. Studies in Socialism

(3) Belgium

Bertrand, Louis. Histoire de la Democratie et du Socialisme en Belgique depuis 1830
Douglas, D. W. G. De Greef. The Social Theory of a Syndicalist

(4) England

*Beer, Max. History of British Socialists
Seligman, E. R. A. Owen and the Christian Socialists
Webb, Sidney. Socialism in England
Shaw, Bernard. Early History of the Fabian Society
*Pease, E. R. History of the Fabian Society
Noel, Conrad. The Labor Party
Raven, M. E. The Christian Socialists
Gleason. What the Worker Wants
Blanshard. The British Labor Movement
Chartism in England
Rosenblatt, E. F. The Economic Aspects of Chartism. (Columbia Univ. Studies)
Slosson, P. W. The Decline of Chartism (Columbia University Studies)
West, J. Chartism
Hovell, M. The Chartist Movement
Cammage, R. The Chartist Movement
Life of Willim Lovett
Hofhouse, Stephen. Life of Joseph Sturge
Trevelyan, G. M. Life of Bright
Morley, J. Life or Cobdan

(5) Australasia

*Clark, V.S. The Labor Movement in Australasia.
Le Rossignol and Stewart. State Socialism in New Zealand
Hutchinson, R. H. The State Socialism of Australasia

(6) The United States

Hillquit, Morris. History of Socialism in America
Hughan, Jessie, W. American Socialism of the Present Day
Socialist Congressional Campaign Book, 1914, 1916, 1920; 1928; 1932
Trachtenberg, Alex. Editor. The American Labor Year Book, 1916, 1918, 1919, 1922, etc.
Macy, John. Socialism in America
Benedict, Bertram. The Larger Socialism
Fine. Farmer Labor Parties in American History
Douglas. The Coming of a New Party
Hicks. The Populist Movement.
Thomas. America’s Way Out
Thomas. As I See It

 

6. The Liberal Socialist Ideal

**Russell, B. Proposed Roads to Freedom
*Wells, H. G. New Worlds for Old (A delightful and engrossing book)
*Dickinson, G. Lowes. Justice and Liberty.
*Shaw, Webb, Wallas and others. Fabian Essays (Well written and cogently stated)
*Tawney, R. H. The Acquisitive Society
Walling, W. E. Socialism as It Is
Wells. Mankind in the Making
Wells. This Misery of Booth
Spargo and Arner. Essentials of Socialism
Spargo, John. Socialism (A popular statement by an able supporter)
Spargo, John. Applied Socialism (A constructive attempt to apply the socialist principle to life)
Wells, H. G. and others. Socialism and the great state
Walling, Stokes, Hughan, Laidler. The Socialism of Today
Snowden, P. Socialism and Syndicalism
Hughan, M. The Facts of Socialism
Hillquit, M. Socialism in Theory and Practice
Hillquit, M. Socialism Summed-up
Kautsky, K. The Social Revolution
Schaeffle, A. The Quintessence of Socialism
*Webb, S. and B. A Constitution for the Socialist Commonwealth of Great Britain
Massart and Vandervelde. Parasitism, Organic and Social
*Hunter, Robert. Violence and the Labor Movement
Shaw, Bernard. Socialism and Superior Brains
Wilde, Oscar. The Soul of Man under Socialism
Rauschenbush, W. Christianity and the Social Crisis
Soudder, Vida D. Socialism and Character
Walling, W. E. The Larger Aspects of Socialism
Sellars, R. W. The Next Step in Democracy
*Benedict, Bertram, N. S. The Larger Socialism
Hobson, J. A. Incentives in the New Social Order.
British Labor Party—Labor and the New Social Order
Henderson, Arthur.— The Aims of Labor
Morris, William. Hopes and Fears for Art
Webb, J. and B. The Collapse of Capitalist Civilization
Russell, Bertrand and Dora. The Prospects of Industrial Civilization
Sturt, Henry. Socialism and Character

 

Socialism and War

Walling, W. E. The Socialists and the War (Excellent documentary collection)
Boudin, Louis. Socialism and War
Files of La Guerre Sociale. Edited by Gustav Herve
Kellogg and Gleason. British Labor and the War
Hunter, Robert. Violence and the Labor Movement

 

8. Collectivism

 

*Davies, E. The Collectivist State in the Making
Shaw, Bernard. The Common Sense of Municipal Trading
Clark, W. E. Municipal Ownership in the United States
*Fabian. Report on State and Municipal Enterprise
Holcombe, A. N. Public Ownership of Telephones on the Continent of Europe
Hammeon, J . C. The British Post-Office
Mavor, James. Public Telephones
Gray, H. L. War Time Control of Industry
*Walling and Laidler. State Socialism, Pro and Con
Ise, John. Our National Forest Policy
Guyot, Yves. Where and Why Public Ownership Has Failed
McKaye, James. Yankee Socialism
Cheozza-Money, L. G. The Triumph of Nationalization
Strobel, Heinrich. Socialization in Theory and Practice
Hodges, Frank. The Nationalization of the Mines
De Montgomery, B. G. British and Continental Labour Policy, pp. 476-529
Survey, issue of March l, 1924 on Giant Power
Strobel, Heinrich. The German Revolution
Thompson. Public Ownerships

 

9. Criticisms of Socialism

*Skelton, O. D. Socialism – A Critical Analysis (excellent)
*Schaeffle, A. The Impossibility of Social Democracy (very good)
Ely, R. T. Socialism and Social Reform
Mallock, W. H. A Critical Examination of Socialism
*Mallock, W. H. Aristocracy and Evolution
*Le Rossignol. What Is Socialism?
Ryan-Hillquit. Socialism, Promise or Menace? (See arguments of Father Ryan against Socialism.)
Guyot, Yves. Socialist Fallacies
Guyot, Yves. The Tyranny of Socialism
Leroy-Beaulieu, P. Collectivism
Belloc, H. The Servile State
Hayek (editor) Collective Economics.
Mises. Socialism.

 

10. References on Anarchistic Theory

1. Individualistic

Godwin, Political Justice
Herbert Spencer. Man Versus the State
Donnisthrope. Liberty
Proudhon. Solution of the Social Problem
Tolstoi. What Shall We Do Then?
Tolstoi. The Kingdom of God Is Within You
Tolstoi. My Religion
Tolstoi. Essays
Tucker. Instead of a Book by a Men Too Busy to Write One

2. Communistic

Kropotkin. Fields, Factories, and Workshops
Kropotkin. The Conquest of Bread
Kropotkin. Mutual Aid
Kropotkin. Memoirs of a Revolutionist
Kropotkin. Anarchist Essays

3. Criticism

Shaw. The Impossibilities of Anarchism

 

11. Syndicalism

Levine. The Labor Movement in France
Pataud et Pouget. Comment Nous Ferons la Revolution?
Pouget. Sabotage
Jouhaux. Le Syndicaliam et Le C. G. T.
Brissenden. The I. W. W.

Criticisms

McDonald. Syndicalism
Spargo. Socialism, Syndicalism and Industrial Unionism

 

12. Guild Socialism

Cole. Self-Government in Industry
Cole. Guild Socialism Re-Stated
Hobson. National Guilds
Carpenter. Guild Socialism Re-Stated

 

13. Consumers Cooperation

Gide. The Consumers Cooperative Societies
Beatrice Potter. The Cooperative Movement in Great Britain
S. & B. Webb. The Consumers Cooperative Movement
Catherine Webb. Industrial Cooperation
Maxwell. History of Cooperation in Scotland
Fay. Cooperation at Home and Abroad
Wolff. Cooperation and the Future of Industry
Warbasse. Cooperative Democracy
Sonnichsen. Consumers Cooperation
Warne. Consumers Cooperation in Illinois
Bergengren. People’s Banks
Russell (“A.E.”). The National Being
Childs. Sweden — The Middle Way
Howe. Denmark — The Cooperative Way

 

14. The Single Tax

George. Progress and Poverty
Young. The Single Tax Movement in the United States
Post. The Taxation of Land Values
Post. What is the Single Tax?
Brown. The Taxation of Unearned Incomes

 

15. Modern Communism

A. Description of Theory

Lenin. The State and Revolution
Lenin. Can the Bolsheviks Maintain Power?
Bukarin and Preobrazhensky. The A. B. C. of Communism
Trotsky. In Defense of Terrorism
Postgate. The Bolshevik Theory
Russell. Bolshevik Theory and Practice
Fox. Lenin
Lenin. Collected Works
Stalin. Collected Works

B. Description of Developments in Russia

Trotsky. The Russian Revolution, 2 vols
Farbman. The Five Year Plan
Hindus. Humanity Uprooted
Hindus. Red Bread
Chamberlin. Soviet Russia–The Iron Age [sic, Russia’s Iron Age, 1934]
Karlgren. Bolshevist Russia (hostile)
Antonelli. Bolshevik Russia (Historical and critical)
Chase and Others. Soviet Russia in the Second Decade
Chamberlain. The Russian Revolution, 1917-1921
Hoover. The Economic Organization of Soviet Russia
***Webb, S. & B. Soviet Communism. 2 vols. The best work thus far. Should be read by all students.
Rosenberg. History of Bolshevism
Trotsky. The Revolution Betrayed

C. Critical

Kautsky. The Dictatorship of the Proletariat
Kautsky. Terrorism and Communism

 

16. Fascism

Machiavelli. The Prince
Mussolini. My Life
Hitler. Mein Kampf
Schneider. Making the Fascist State
Dutt. Fascism and Social Revolution
Salvimini. Fascism (hostile)
Strachey. The Coming Struggle for Power
Schuman. The Nazi Dictatorship
Bolton, King. Fascism
Pitigliani. The Italian Cooperative State [1933]
Finer. Mussolini’s Italy
Rosenstock-Franck. L’Économie Corporative en Theorie et Pratique [L’économie corporative fasciste en doctrine et en fait, 1934]
Seldes. Sawdust Caesar
Hoover. Germany Enters the Third Reich
Dennis, Lawrence. The Coming American Fascism
Salvemini. Under the Axe of Fascism
Rosso. The Road to Exile.

17. The Theory of Capitalism

Smith. The Wealth of Nations.
Carver. Essays in Social Justice.
Herbert Hoover. Defense of Liberty,
Pigou. The Economics of Welfare.
Cassel. The Theory of Social Economy.

 

18. Recent Books on Fascism, Communism, Democracy (1938)

A. Fascism

*Borgese, Goliath, The March of Fascism.
*Roberts, The House that Hitler Built.
Schmidt, The Plough and the Sword.

 

B. Communism

*Lyons, Assignment in Utopia.
Beal, Proletarian Journey.
Smith, I was a Soviet Worker.
Trotsky, The Revolution Betrayed.

(All of the above books on communism are hostile criticisms from ex-communists about the dictatorial aspects of the Russian government)

C. [Democracy]

Heiman, *Fascism, Communism and Democracy [sic, Communism, Fascism or Democracy?]
Pigou, *Socialism versus Capitalism.

 

D. On Some Problems of Pricing, etc., in a Socialist Economy.

*Mises, Socialism.
*Hayek, Mises, Barone, etc., Problems of Collectivist Planning.
*Lange, “The Economic Theory of Socialism,” Review of Economic Studies, October 1936, February 1937.
Lerner, “Economic Theory and Socialist Economy,” Review of Economic Studies, October 1934.

Source: The University of Chicago Library. Norman M. Kaplan Papers. Box 1, Folder 7.