The Politics of US Economic Policies Political Science 40: Winter 2014

Do politicians make policy decisions that make sense economically as well as politically? How do policy choices reflect economic constraints? How do ideas that come from economics affect politics and political science? Arts and Science 133 T/Th 10:20-12:00 Phone: (408) 554-5069 Email: Kfaulvemontojo@scu.edu Dr. Kenneth Faulve-Montojo Office: ARTSCI 234 Office Hours: T/Th 9:00-10:00, T: 4:00-5:00 and by appointment

In studying the politics of US economic policies, we will explore the intersection between economics, politics and policy-making across a variety of policy areas in domestic and international politics. This course will cover basic concepts in microeconomic, macroeconomic and international economics in order to demonstrate the relationship between the science of economics and the politics of US economic policies. Case studies will be used to highlight conflicting political and social choices, such as poverty issues, agricultural policies, and immigration and international trade dynamics. The purpose of the course is to enhance student understanding of how economic and political issues are interrelated. Learning Objectives: To enable students to understand the politics of US economic issues and policies. To inform students as voters and citizens regarding these topics. To integrate student understanding of economic concepts and analysis with current political decision making. To compare and critically evaluate political views on economic issues and policies. To accomplish these objectives, students will take three midterms that will focus on economic concepts and models, and how they can be used to create and adjust government policy. Students will also write three short case studies that are part of the larger policy cases that will be discussed during sections on micro-, macro- and international economics. In these papers, students will explore a small subset of an economic issue and how policy-makers affect the outcomes in this area. Students will develop and contrast different economic and political viewpoints on these topics. Participation in this class is essential, and at several points in the course students will be asked to present their own research and analysis on economic topics. Core Curriculum: This course fulfills the Social Science Requirement in the Core Curriculum. Goals: Scientific Inquiry, Complexity, Critical Thinking, Mathematical & Quantitative Reasoning Objectives: Students who have completed Social Science will 1.1 Be able to apply deductive and inductive reasoning to analyze social science topics. (Scientific Inquiry, Mathematical and Quantitative Reasoning) (case study essays, in-class projects, and exams)

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Evaluate evidence used to validate theories, hypotheses, or predictions. (Scientific Inquiry, Critical Thinking, Complexity) (exams, small group in-class projects.) 1.3 Appreciate that theories and data analysis often admit multiple interpretations and will be able to evaluate the relative merits of alternative perspectives. (Critical Thinking, Complexity) (case study essays and exams.) Pathways: This course is associated with the following pathways: 1) Public Policy 2) Food, Hunger, Poverty and the Environment. If you choose to declare one of these pathways you will use a piece of representative work from this course for your pathway portfolio. Therefore keep electronic copies of your work in this class and upload one assignment to your ecampus pathway account. More information about pathways and the pathway portfolio is available at http://www.scu.edu/provost/ugst/core2009/pathways.cfm Readings: Below are the readings for the course. Jacqueline Murray Brux. 2011. Economic Issues and Policy, 5th edition. Mason: OH, South-Western College Publishers, 2011. Additional readings can also be found on Camino. These readings are marked by an asterisk (*). Also a variety of topical readings from the Economist and other current news. Grading: The following is the grading breakdown. Participation and attendance Case studies (3) Midterm exams (3) 10% 45% 45%

Exercises: Numerous exercises will be distributed during the quarter. These exercises are not graded, but they are a good indicator of enhancing your understanding of the materials. Camino: The class makes extensive use of Camino class management system. It serves as a good mechanism toward your learning. Please be sure to log on to it regularly. To help you with the lectures, you can access by Monday evening/Tuesday morning posted materials such as abridged outlines. These outlines allow you to listen to the lecture and not have to jot everything down. Academic Honesty: The University of Santa Clara expects the highest standard of academic integrity from its students. Toward this end, any form of academic dishonesty will not be tolerated. Any student found guilty of academic dishonesty FAILS the course and will also be reported to the proper academic authorities. Academic dishonesty is defined as: plagiarism (representing the work or ideas of others as ones own without giving proper acknowledgement), cheating (e.g. copying the work of another person, falsifying laboratory data, sabotaging the work of others), and other acts generally understood to be dishonest by faculty or students in an academic context. (Student Conduct Code, Sect. I, Sec. D, p. 1.)

Classroom behavior: As a courtesy to other students and the instructor, students should engage in the highest standard of behavior during class sessions. Proper classroom etiquette includes arriving on time and staying for the full lecture, refraining from distracting other students during lecture, listening attentively until the professor dismisses the class, and treating the opinions of other students with respect. Also, students should turn off all mobile phones, refrain from text messaging, do not read newspapers or magazines during class time, and avoid excessive talking within a group. The professor reserves the right to either deduct from the overall grade for particularly egregious examples of poor classroom etiquette or expel students for one class session. Students expelled for the session must submit a written request to return to class. The professor reserves the right to reward students for outstanding displays of collegiality. Finally, absolutely NO computers are allowed during classes. Week 1Introduce basic concepts of economics and different visions of how economies should work. 1/7 Introduce class and context Understanding capitalism and its theorists: Smith, Marx and Keynes *Heilbroner and Thurow, Economics Explained, chapters 1 and 2. 1/9 What are economics and how do economic ways of solving problems shape political science? *Landsburg, The Armchair Economist, chapters 1 and 2.

Microeconomics Week 2How does the market affect individuals and how does it allocate resources? What is the effect of government policy on individuals and firms? 1/14 Supply and demand Brux, Chapter 1 Public goods and the free-rider problem Brux, Economic Issues and Policy, chapter 2 and appendix 2 1/16 Externalities and supply and demand Brux, Economic Issues and Policy, chapter 3

Week 3Market Distortions 1/21 Away from a free market: subsidies and monopolies Brux, Economic Issues and Policy, chapter 11 Discuss case study assignment Looking at government policy: does it promote or prevent market failure? Film: King Corn Midterm

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Week 4Market Power and agriculture 1/28 Market power and agriculture Brux, Economic Issues and Policy, chapter 13 *Miller, Benjamin, and North, The Economics of Public Issues, chapters on Ethanol (2) and Agriculture policies (23). Research discussion: topics in Microeconomic Policy Case study due in class

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Macroeconomics Week 5How does the whole economy work, what is the role of government intervention, and what is monetary policy and how should it be used? 2/4 Unemployment and inflation Brux, Economic Issues and Policy, chapter 14 Understanding the performance of the economy: the business cycle Monetary policy Brux, Economic Issues and Policy, chapter 15 *Charles Wheelan, Naked Economics, chapter 10 The Federal Reserve

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Week 6Fiscal Policy 2/11 Fiscal policy Brux, Economic Issues and Policy, chapter 16 Greg Ip, The Little Book of Economics, chapters 12 and 13. Are Taxes Too Damn High? response by Grover Norquist, Foreign Affairs, Nov/Dec 2012, page 156-162 David Wessel, Red Ink, Inside the High-Stakes Politics of the Federal Budget, 2012, chapter 3 Film: Ten Trillion and Counting (explanation of current debt level) David Wessel, Red Ink, chapter 5 (The national debt: in-class project)

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Week 7Inequality 2/18 2/20 Midterm Inequality in America Brux, Economic Issues and Policy, appendix for chapter 6 Government and poverty Brux, Economic Issues and Policy, chapter 6

*Jerry Z. Muller, Capitalism and Inequality: What the Right and the Left Get Wrong, Foreign Affairs, March/April 2013. *Anne-Marie Slaughter, Why Women Still Cant Have It All, The Atlantic, July/August 2012. Macroeconomics (Continued) and International Economics Week 8Social Security and International EconomicsHow do American economic policies affect and how are they affected by international economics? 2/25 Social security Brux, Economic Issues and Policy, chapter 9 Research discussion: topics in Macroeconomic Policy Case study due in class 2/27 International trade, globalization, and the WTO Brux, Economic Issues and Policy, Chapters 12 and 17. Timothy P. Carney, Boeing vs. Airbus: Clash of the Corporate Welfare Titans, CEIINPOINT, July 14, 2005. Week 9Regionalism and global poverty 3/4 Regional trade solutions: EU and NAFTA Brux, Economic Issues and Policy, pp. 287-289. Andrew Moravcsik, Europe After the Crisis, Foreign Affairs, May/June 2012. *Mark Glassman, Nafta 20 Years After: Neither Miracle nor Disaster Businessweek, December 30, 2013. *Twenty Years Later, NAFTA Remains a Source of Tension, New York Times, December 7, 2012. International development economics Brux, Economic Issues and Policy, chapters 10 and 17 Jagdish Bhagwati, In Defense of Globalization, Chapter 5.

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Week 10Wrap up 3/11 3/13 The inter-relation of micro-, macro- and international economics. Research discussion: topics in International economic policy Case study due in class Round table discussion 3/18 Midterm #3 at 9:10 a.m.12:10 p.m. Tuesday March 18.