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Political Economy and Society (11.405)
(Room 5-232)
Prof. J. Phillip Thompson (DUSP)
9-513
Phone: 617-452-2813, jt71@mit.edu
Prof. Otto Scharmer (Sloan)
E62-419
Phone: 617-253-0486, scharmer@mit.edu
Administrative Support:
Harriette Crawford
617-253-7736, hcrawfor@mit.edu
Description:
The theme of this course will be “the connection between mind (theory) and matter
(lived experience) in the evolution of the economy and society.” The course will
examine basic tenets of classical and recent political economic theories and their
explication in ideas of market economies, centrally planned economies, social
market economies, and co-creative economies. Attention will be given to recent
economic trends and crises. In all cases, theories will be assessed according to their
relation to the lived experiences of people in communities and workplaces. The
course is geared towards PhD and advanced MCP students having an interest in
theory and innovation.
Schedule: Wednesdays – 2 - 5pm
Requirements:
Students are required to do readings and discuss them in class. All students will be
required to do classroom presentations of selected readings and to participate in
class discussions (40% of grade). Students are required to write a final paper 20-30
pages that will count for 60 percent of the grade.
Readings (Articles will be available on Stellar):
Crouch, C. (2005). Capitalist Diversity and Change: Recombinant Governance and
Institutional Entrepreneurs. New York, Oxford University Press.
Foley, D. K. (2006). Adam's Fallacy: A Guide to Economic Theology. Cambridge,
Harvard University Press.
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Graeber, D. (2011). Debt: The First 5,000 Years. Brooklyn, Melville House
Publishing.
Gorton, G. B. (2012). Misunderstanding Financial Crises: Why We Don't See Them
Coming. New York, Oxford University Press.
Johnson, S. and J. Kwak (2011). 13 Bankers: The Wall Street Takeover and the Next
Financial Meltdown. New York, Vintage Books.
Konings, M., Ed. (2010). The Great Credit Crash. Brooklyn, NY, Verso.
Panitch, L. and S. Gindin (2010). The Making of Global Capitalism: The Political
Economy of American Empire. Brooklyn, NY, Verso.
Polanyi, K. (1944). The Great Transformation: the political and economic origins of
our time. Boston, Beacon Press.
Scharmer, O. and K. Kaufer (2013). Leading from the Emerging Future: From Egosystem to Eco-system Economies. San Francisco, Berrett-Koehler Publishers.
Class Topics
1. Introduction: The Problem We Seek to Tackle (September 4)
2. Origins of Money and Debt (Societies 0.0 and 1.0) (September 11)
Read David Graeber, chapters 1,2, 11, 12.
3. Classical Economic Theory (Society 2.0) (September 18)
Read Duncan Foley, chapter 1, “Adam’s Vision”; chapter 2, “Gloomy Science”;
chapter 3, “The Severest Critic.”
Read Hansen and Prescott, “Malthus to Solow.”
4. The Welfare State (Society 3.0) (September 25)
Read Polanyi, K. , chapter 6, “The Self-regulating Market and the Ficticious
Commodities: Labor, Land, and Money; chapter 7, “Speenhamland,”; chapter 8,
“Antecedents and Consequences.”
Read Foley, chapters 4, “On the Margins”; chapter 5, “Voices in the Air”; chapter 6,
“Grand Illusions”.
5. Capitalism and Neo-Institutional Theory (October 2)
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Read Crouch, the entire book.
6. Origins of the Current Crisis: History (October 16)
read Panitch, chapters 1-8.
7. Society 4.0 (Social Technology: Society 4.0) (October 9)
Read Otto Scharmer and Katrin Kaufer, the entire book.
8. Origins of the Current Crisis: Financial Mechanisms (October 23)
Read Gorton, chapters 2-4.
Read Greta Krippner, chapters 2-5.
9. Origins of the Current Crisis: Corporate Power and Strategies (October 30)
Read Johnson and Kwak, the entire book.
10. Current Political Economic Debates (November 6)
Konings, chapters 1, 3, 4, 5, 6, 7, 9, 13.
11. Current Urban Political Economic Critiques (November 13)
Read the articles and chapters listed below:
Saskia Sassen, "Cities Today: A New Frontier for Major Developments," The Annals
of the American Academy of Political and Social Science (Nov 2009) p53-71 (R)
Brenner, “New State Spaces” (Oxford, 2004), chapter 3, “The State Spatial Process
Under Capitalism: A Framework for Analysis,” chapter 6, “Alternative Rescaling
Strategies and the Future of New State Spaces.”
Harvey, chapter 6, “The Geography of It All”; chapter 7, “Creative Destruction on the
Land.”
Norton Long, "The City as Reservation, Public Interest 25 (Fall 1971)
George Sternlieb, "The City as Sandbox," Public Interest 25 (Fall 1971)
Harvey Molotch, "The City As Growth Machine: Toward a Political
Economy of Place," American Journal of Sociology 82 (September 1976): 309-332
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Michael Porter. "The Competitive Advantage of the Inner City," Harvard Business
Review, May-June 1995 (R)
12. Radical Theories of Development and Sustainability (November 20)
Read Kuecheyan, chapters 1-4.
13. Alternative Subjects of Development and Sustainability (November 27)
Read Kuecheyan, chapter 5.
13. Class Exercise (December 4)
14. Student Presentations (December 11)