Politics of Capitalism


                                        Spring Quarter 2024


                                    Instructor: Andrew Roberts

                                    Office hours by appointment


This course considers how politics affects the economy and the economy affects politics. Its main
focus will be on the advanced industrial economies of Western Europe, North America, and East Asia.
Major topics to be covered include the normative arguments for and against the market, the
development of the west, the welfare state, the role of money in politics, and inequality.


This course has two goals. The first is to introduce students to some of the basic ideas of
comparative political economy in the developed world. This includes key events and developments and
theories explaining these events and developments. The second goal of the course is to teach
students how to think like political scientists. This means that they will develop skills in the
rigorous evaluation of normative and positive arguments.


The objectives of this course are the following:


-          Students will become familiar with the major theories of political economy.

-          Students will learn the key methods for studying political economy.

-          Students will learn how to evaluate and critique political science research.


By the end of the course, students should have the ability to follow and understand current events
at the intersection of the economy and politics and to think about them as a political scientist
would – i.e., to understand their causes, consequences, and desirability.


Course Structure:


The class will use a flipped course structure. Recordings of lectures will be posted and class time
will be used for a summary of material, questions on the material, class discussion on posted
discussion questions, and class debates.



Course Requirements:


·         Participation: Students should participate in class, respond to one discussion question
prior to class, and answer quiz questions distributed after class.
  * Debate and Short paper: Students should participate in a class debate and complete a short
paper (approximately 3-5 pages) taking a position on the debate topic and defending it against
criticisms.
  * Mid-term and final exam: These will be held in class and include identifications, short
answers, and longer essays.


Course Evaluation:


Evaluation in the course will be based on the following exercises


Participation:                          20%

Debate & short paper:           20%

Midterm:                                30%

Final exercise:                         30%


Course Outline and Readings


February 21: Organizational Meeting on Zoom


March 6: Market Society


·         Albert Hirschman, “Rival Views of Market Society”.

·         Sandel, Justice: What’s the Right Thing to Do?, selections.


March 13: Arguments for the Market


·         Friedman, Capitalism and Freedom, chapter 1.

·         Hayek, The Road to Serfdom, selections.


Debate Topic: Are there some things which should not be sold?


March 20: Arguments against the Market


·         Polanyi, The Great Transformation, selections.


Debate Topic: Should we have a universal basic income?


March 27: Origins of Capitalism


·         Koyama and Rubin, How the World Became Rich, chapters 7-8.


April 3: MIDTERM – In class


PART 2: Contemporary Issues


April 10: Compatibility of Democracy and Capitalism


·         Offe, “Competitive Party Democracy and the Keynesian Welfare State: Factors of Stability
and Disorganization”.

·         Putterman, “Why Have the Rabble Not Redistributed the Wealth?”.


Debate Topic: Should we have workplace democracy?


April 17: Welfare State


·         Pierson, “The New Politics of the Welfare State”.


May 8: Public Choice


·         Lopez and Leighton, “Public Choice: How We Choose Bad Policies and Get Stuck With Them,
Or Not”.

·         Caplan, “The Myth of the Rational Voter: Why Democracies Choose Bad Policies”.


Debate Topic: Does money make people happy?


May 15: Inequality and Business


·         Krugman, “Why We’re in a New Gilded Age”.

·         Cowen, Big Business: A Love Letter, chapter 1.


Debate Topic: Are the Superrich in Control?


May 22: FINAL EXAM – In class



Readings for Debate Topics

These readings will help get you started. Feel free to look for others or consult with me.

Debate Topic: Are there some things which should not be sold?


·         Sandel, “What Can’t Be Sold”.

·         Brennan and Jaworski, “If You May Do It for Free, You May Do It for Money”.


Debate Topic: Should we have a universal basic income?


·         Surowiecki, “The Case for Free Money”.

·         Cowen, “My Second Thoughts about Universal Basic Income”.


Debate Topic: Should we have workplace democracy?


·         Frega and Herzog, “Workplace Democracy – The Recent Debate”.

·         Tomasi, “Reply to Elizabeth Anderson”.


Debate Topic: Does money make people happy?


·         Easterlin, “The Happiness Income Paradox Revisited”.

·         Matthews, “Yes, Money Really Can Buy Happiness“.


Debate Topic: Are the Superrich in Control?


·         Ansolobehere, Figueredo, and Snyder, “Why So Little Money in Politics”.

·         Page and Gilens, “Testing Theories of American Politics”.