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The Literature of Capitalism
Course Code: FRSEM-UA 576
Fall 2015
Thursday, 2-4:30 PM
Instructor:
Office Hours:
Tom Easton tomeaston@economist.com, 646 346 9804
By appointment, either after class or on weekends.
This course intertwines history, economic ideas, and literature to examine two related
questions: what enables success and at what cost does success come. There will be weekly
reading (or in one case watching) assignments that are introduced, roughly, in chronological
order. Writing and presentation styles evolve over this time frame, and the environment in
which the stories are set differ, but the two underlying questions remain. They propel the
narrative and in the process reveal tensions that are at the core of issues that individuals and
societies have long struggled to resolve.
Requirements include class participations and weekly essays of fewer than 750 words with
the exception of a longer final assignment (2,000 words) tying the semester together. Each
paper will be graded with a double check, single check, or a check minus. Writing short
essays is an art form and the goal of the course is for you to develop the ability to do these
quickly. This may be difficult at first, but over time will become much easier as you begin to
formulate your points as your read.
An example of this sort of writing can be found in the book review sections of the
Economist or Wall Street Journal. The goal is not to be formulaic in approach - in the
second week, for example, I ask you to write a letter – but rather to put forward compelling
ideas that flow from one paragraph to the next, ending in a strong conclusion. Many of the
best writers and cohesive thinkers I have worked with attribute the fluidity of their approach
to having been required to read their papers so the class will use this tool. Papers will be read
out loud weekly with students selected on a rotating basis and their work will be used as
focal points for class discussions. Selectively, students may also be assigned to present
summaries and lead discussions on the brief supplemental readings
Required Texts:
The Wealth of Nations, Book 1; Adam Smith (1776)
The Overcoat, Nikolai Gogol (1842)
Self Help, Samuel Smiles (1859)
Ragged Dick and Struggling Upward, Horatio Alger (1867)
Where the Money Grows, Garet Garrett (1911)
The Rise of David Levinsky, Abraham Cahan (1917)
The Nature of The Firm (1937), Ronald Coase
The Road to Serfdom (1944; abridged version, 1972), Friedrich Hayek
Atlas Shrugged, Ayn Rand (1957)
A Conspiracy of Paper, David Liss (2000)
The White Tiger, Aravind Adiga (2008)
Tiger’s Heart: the Story of a Modern Chinese Woman, Aisling Junjuan Shen (2009)
How to get Filthy Rich in Rising Asia, Moshin Hamid (2013)
The Forgotten Man (graphic novel version, 2014), Amity Shlaes
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Required Movie:
It’s a Wonderful Life
Additional Reading
(Do not purchase. Will be on reserve at Bobst Library).
The Law, Frederic Bastiat (1854)
Other People’s Money, Louis Brandeis (1914)
The Jungle, Upton Sinclair (1906)
Babbit, Sinclair Lewis (1922)
Essays, Carnegie (1881)
Capitalism and Freedom, Milton Friedman (1962)
The Go Go Years, John Brooks (1973)
Equality and Efficiency (1975), Arthur Okun
Old School (2003), Tobias Wolf
Free Market Fairness (2012), John Tomasi
South of the Slot (1909), Jack London
The Illusion of Free Markets, Bernard Harcourt
The Road to Wigan Pier (1937), George Orwell
The Great Crash (1954) J.K. Galbraith
The Lives of Engineers, Samuel Smiles (1861)
Reminiscences of a Stock Market Operator –Edwin Lefevre (1923)
Capital in the Twenty-First Century, Piketty (2014)
Week One: Introduction
Week Two: The American Dream
Required reading:
Ragged Dick, Horatio Alger
Optional reading:
Struggling Upward, Horatio Alger. It is a brief and rewarding read that is part of the same
volume in the Penguin edition.
Writing assignment:
The use of Horatio Alger’s writing as a metaphor for the American dream makes it a core
part of the course, and you will return to it many times throughout the semester in your
essays. In part because of this, it will be part of the class discussion but not the subject of the
first essay. Instead, the essay will look at a fundamental component of capitalism and
modern life: the company. Why does it exist? Feel free to use outside sources – or not. You
are also free to attack the very idea of a company. There is no need to take a position you
think might overlap with another person’s. The point of the paper is to think about a social
structure that resembles, but is not the same, as a city or a country or a religious hierarchy.
You will not be graded on having given a “correct” answer. The goal of this essay is to put
forward a cohesive set of thoughts in an interesting and imaginative way. The question will
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be revisited in week eleven.
Week Three: The Rise of Big Business
Required reading:
Self Help, by Samuel Smiles. The book is a series of descriptions of entrepreneurs who
played critical roles in the industrial revolutions. Please flip through the book and choose
several of these vignettes to read, in total no more than 80 pages.
Additional reading:
Excerpts from The Wealth of Nations by Adam Smith (possible presentation by students)
Writing assignment:
In the miraculous world of NYU Freshman Honors courses, we have brought Mr.
Smiles back to life. Please write him a letter and tell him what you think about Self Help.
Feel free to contest his views, suggest why his thoughts on the structure of society are
obsolete, or, conversely, why you found his ideas are still valuable.
Week Four: The Crushing Weight of Capitalism
Required reading:
The Overcoat, Nikolai Gogol
Atlas Shrugged, Part 1
Additional reading:
Excerpts from The Illusion of Free Markets, Harcourt; Capital in the Twenty-First Century,
Piketty
Writing assignment:
Gogol provides a harsh take on the state, on business, and on humanity. Who or what is
the villain in this book? Is the fault in the system? Does any offer a path to a better life
for the protagonist?
Week Five: The Rise of Finance
Required reading:
A Conspiracy of Paper, David Liss, which is historical fiction tied to the infamous 18th
century South Sea Company.
Additional reading:
Excerpts from Lombard Street, Walter Bagehot
Writing assignment:
Imagine a sequel to Liss’s book and outline the plot.
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Week Six: Alger Revisited and the Plight of Immigrant Labor
Required reading:
The Rise of David Levinsky, Abraham Cahan. Read through page 215. Stop where “Dora”
begins.
Possible added reading:
(If added, will be referred to in class): South of the Slot, Jack London
Writing assignment:
How do these readings treat the responsibilities of workers to their employees, and what
are the consequences? Are the characters moral? Immoral? Criminals?
Week Seven: Wall Street Characters
Required reading:
Where the Money Grows, Garet Garrett.
Atlas Shrugged, Part 2
Writing assignment:
Are these men villains or heroes? Are they necessary?
Week Eight: The Affects of Government
Required reading:
The Forgotten Man, graphic novel, Amity Shlaes
Additional reading:
Atlas Shrugged, Part 2, second half.
Writing assignment:
Shlaes’ book is a twist on the conventional history of the 1930s and the presentation,
through the use of a graphic novel, is innovative. The assignment is to write a review of the
book
Week Nine: Hollywood’s Portrayal of Capitalism
Required watching:
It’s a Wonderful Life (1946).
This movie is cited constantly and the existence of small banks is often attributed to its
message.
Writing assignment:
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Is there any defense for Potter’s demands, or flaw in George Bailey’s actions?
Week Ten: Capitalism vs. Statism
Required reading:
Atlas Shrugged, Part 3
Writing assignment:
Assume Rand happens to be a student in this class and has been assigned to write essays
on the material you have already reviewed. Please write, from her perspective, a review
of “It’s a Wonderful Life”, David Levinsky, and the Overcoat.
.
Week Eleven: An Economist’s Defense of Capitalism
Required reading:
Road to Serfdom, F.A. Hayek (abridged edition)
Theory of the Firm, Ronald Coase
Writing assignment:
Please rewrite your assignment from Week Two, positing why you think a company exists
(or why it should not).
Theme for the final three weeks: Horatio Alger in the 2000s (and Asia) tied to three
countries, first Pakistan, then India, then China
Week Twelve: Horatio Alger in Modern Pakistan
Required reading:
How to Get Filthy Rich in Rising Asia (2013), Mohsin Hamid
This book was hugely controversial in Pakistan, as was next week’s reading in India.
Writing assignment:
Why did the book end as it did? Could you, or would you, structure an alternative
ending?
Week Thirteen: Horatio Alger in Modern India
Required reading:
The White Tiger, Aravind Adiga (2008)
Writing assignment:
Is the character moral? Is there a place for a moral system in his world?
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Week Fourteen: Horatio Alger in Modern China
Required reading:
A Tiger’s Heart: the Story of a Modern Chinese Woman, Aisling Juanjuan Shen
Writing assignment:
What does her rise say about capitalism and law? About relationships and appearances?
How would you compare this book to the many others read during the semester with
similar themes? Does the treatment of capitalism differ in substance or merely
appearance? This paper should bring together the issues raised in the course by two to
three times the normal length (approximately 2,000 words).
Course Policies
Attendance
Attendance is Mandatory. Two unexcused absences and your advisor will be contacted
and may affect your grade. If you miss a class, reading is still required. Please do not
email to ask about material.
Handing in assignments
A dropbox account has been created with a folder for each weekly assignment and for
your name. Assignments are at 5 pm each Wednesday. Additionally, please bring two
copies of your essays to class, one for me and one to enable the reading.
Electronics
Emails can be checked only during the break; the use of computers during class is
discouraged. It is impermissible to read your assignment from a cell phone.
Food
Coffee or tea is fine if allowed by NYU. So too is food, as long as it is not vexing to
classmates. There will be a break in the middle of each class.
Timeliness
Please be prompt. If you are late, your grade will be reduced.
Office hours
I will try to meet with each student at least once in the semester and will be available to
meet more frequently. Typically, this will be on weekends. If this is unfeasible for a
student, I will try to meet during the week, most likely after the Thursday class.
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Reading, writing, commenting and grading
The reading is essential; it is what will remain with you years from now, and what will
open up other areas for inquiry during the rest of your time in college. Your contribution
to the class discussions comes in two forms: the reading of your essays, and comments
on the ideas raised by the material and your classmates’ insights. Grades will be derived
from the weekly papers (50%-to-60%) and 15% on class contributions with the rest
from the final paper and, to a lesser extent, a joint presentation. As noted above, each
week I will evaluate your papers using a three-level metric: two checks, one check, or
check minus. Papers will be due 24 hours before each class to give me a chance to go
through them. I will then ask for many of these to be read. The intention is to encourage
the development of a crisp style. The joint presentations will be done on a rotating basis
with each student involved in one. The goal will be to explain critical ideas from a
significant thinker to the class.
Goals of the class: to become conversant with crucial ideas and writers, develop
writing skills and gain intellectual traction that will allow for further academic
inquiry.
This a full four-point course constructed around an idea that has been at the center of
incendiary debate throughout recorded history and doubtless before. It will not attempt
to be encompassing, nor even a survey. Instead, it should serve as an intellectual
appetizer comprised of fine writers and difficult insights that may serve as a foundation
for thoughts that you may have that continue to evolve for the rest of your lives. Among
the ancillary benefits is that you will confront the words of authors who are commonly
cited but rarely read. This by itself will prove helpful in understanding many of the larger
debates about how a society should be organized, but this is just a first step. The
writings in this course have thrown light on difficult subjects, and in the process
intrigued, enraged and inspired many extraordinarily bright people. By the end of the
course, you may find yourself included in this distinguished group. Beyond all this, many
of the books are, by themselves, riveting. They talk of not only societal costs and
benefits, but personal costs and benefits. These are often excluded equations in
conventional economic studies but they are at the core of any economic and political
system, and at the core of wrenching literature.
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