Dr. Jeffrey Dixon
PLSK 586-115:
Political Economy
Office: Founder’s Hall 319
Email: JeffreyDixon@ct.tamus.edu
Phone: (254) 501-5871 (email preferred)
Office Hours: 4:00-6:00 Tues-Thurs (1st 8 weeks)
Spring 2014 / 6-9 MW / FH 403
Course Description
A study of the historical, philosophical, and theoretical relationships between the state and the economy, with an
emphasis on the effect of political policies on growth, inflation, and employment.
Course Overview and Objectives
This course provides an overview of three realms of political economy: American, comparative, and international.
In each case, we will be examining the role of economic conditions on political outcomes and the role of political
conditions on economic outcomes. Therefore, there are six learning objectives:
1. To understand the influence of economic factors on American politics
2. To understand the economic effects of political activity on economic growth and economic inequality
3. To understand the influence of economic factors on the politics of other nations, both developed and
developing
4. To understand the political foundations of growth and poverty in other nations
5. To understand the influence of the world economy on international relations
6. To understand the causes of the onset and termination of the Great Recession
The learning outcomes of the course are to be able to apply your knowledge of 1-6 to proposed political-economic
policies and to be able to explain how politics and the economy affect each other.
Required Readings
The following book is required and will be available for purchase at the bookstore. You are under no obligation to
purchase a textbook from a university-affiliated bookstore. The same textbook may also be available from an
independent retailer, including an online retailer.
Frederick S. Weaver. 2010. Economic Literacy: Basic Economics with an Attitude.3rd Ed. Lanham, MD:
Rowman and Littlefield. ISBN 9781442204225
Other course readings will be available on Blackboard.
Course Technologies
Mode of instruction and course access: This course is a lecture with online components and uses the
TAMU-CT Blackboard Learn system (http://tamuct.blackboard.com). You will use the Blackboard
username and password communicated to you separately to logon to this system. See below for details.
Technology Requirements:
Blackboard Learn: This course will use the TAMU-CT Blackboard Learn learning management
system for content distribution and course assessments.
Logon to http://tamuct.blackboard.com to access the course.
Use your MyCT Username (i.e. xx000) and Password
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Equipment and Services Required
For this course, you will need reliable and frequent access to a computer (iPads may not work for all
elements of the course) and to the Internet. If you do not have frequent and reliable access to a
computer with Internet connection, please consider dropping this course or contact me at
JeffreyDixon@ct.tamus.edu to discuss your situation.
Software Required
Blackboard supports the most common operating systems:
PC: Windows 8, Windows 7, Windows XP, Windows Vista, Windows 2000
Mac: Mac OS 10.6 “Snow Leopard®”, Mac OS 10.5 “Leopard®”, Mac OS 10.4
“Tiger®”
Check browser and computer compatibility by following the “Browser Check” link on the TAMUCT Blackboard logon page. (http://tamuct.blackboard.com) This is a CRITICAL step as these
settings are important for when you take an exam or submit an assignment.
Statement on Student Responsibility: Technology issues are not an excuse for missing a course requirement –
make sure your computer is configured correctly and address issues well in advance of deadlines.
Technology Support
For technological or computer issues, students should contact the TAMU-CT Blackboard Support Services 24
hours a day, 7 days a week:
Support Portal: http://www.ct.tamus.edu/bbsupport
Online chat through the support portal at: http://www.ct.tamus.edu/bbsupport
Phone: (855)-661-7965
Grading: The grading scale is 90/80/70/60.
o
Academic Integrity Exercise (10 points): Students are required to complete the Academic Integrity
Exercise, which can be found on the course Blackboard page. Any students who have previously
completed it in another one of my courses are exempt from taking it again.
o
Description: It consists of watching a brief lecture, taking a quiz, seeing where any mistakes
on the quiz came from, and signing a statement. Once you successfully complete this exercise,
you will no longer need to do so in future political science courses. Completing the Academic
Integrity Exercise is a prerequisite to passing this course. It must be completed before you hand
in Assignment 1 or by January 22, whichever comes first.
o
Rubric: You will automatically fail the course if you have not completed the Academic
Integrity exercise on or before January 22. Completion of this exercise (watching the video
and signing the statement) will grant you 10 points in the class.
o Homework (40%): There are four homework assignments, each of which is worth 10% of your grade.
 Regrades: You have one week from when I return an assignment to request a re-grade of some or
all of the exercise. Just attach a note specifying the section you want regraded.

Rubrics:
o Assignment 1: The grade will be based on the quality of the explanations provided for
each question, and the completetion/noncompletion of every other element of the
assignment. One-third of the credit lies in simply getting the future debt down to
60% of GDP. The writing will be graded with the writing rubric below.
o Assignment 2: The grade will be based on completing each step of the exercise and
the quality of the writing (see writing rubric below).
o Assignment 3: The grade is simply the number of correct answers divided by the
number of total questions.
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o Assignment 4: The grade will be based on the successful completion of each element
in the assignment. The essay will be graded with the writing rubric below.
Grade
Thesis
Argument Structure
Evidence
100
Answers the
question and
drives the
rest of the
piece
The thesis is proven
using arguments about
each element of the
question, each with its
own support
95
Answers the
question,
but some of
the piece
ignores it
Most of the support for
the thesis is built up
from arguments about
each element of the
question, each with its
own support
85
Answers the
question,
but most of
the piece
ignores it
Some elements of the
thesis do not
correspond to sections
of the answer, or vice
versa
75
Does not
match up
with every
element of
the question
The essay is a set of
arguments that proceed
without logical order
65
Does not
match up
with most
elements of
the question
Most of the essay is
devoid of actual
argument, instead
following a stream-ofconsciousness or “data
dump” strategy
Each element of the argument is
supported by evidence from the
course – both assigned readings
and lectures. If research is
required, the research is reliable.
In general, theory-based and
consistent statistical findings are
better evidence than isolated
examples, where such evidence is
available. No major source of
evidence is ignored.
Each element of the argument is
supported by evidence from the
course – both assigned readings
and lectures. If research is
required, the research is reliable
but missing a datum or two.
Anecdotes predominate over
general theoretical findings.
Each element of the argument is
supported by evidence from the
course, but major sources of
evidence are ignored. OR The
evidence used is insufficient to
support one or more of the claims
in the piece. OR Much of the
support consists of direct quotes or
naked claims, unsupported by
research.
The evidence, when taken as a
whole, fails to support the thesis,
with necessary steps in the
argument being assumed instead of
demonstrated. Much relevant
evidence is omitted and irrelevant
evidence may be present.
References to evidence from the
course lack specificity.
At least one major element of the
essay’s argument has substantial
evidence from the course that
supports it. However, other
references are generally vague or
irrelevant. Research is unreliable.
Syntax, Usage,
Grammar,
Spelling
No errors.
Up to one error
per 200 words.
Between one
error per 100
words and one
error per 200
words.
Between one
error per two
sentences and
one error per
100 words.
One error per
two sentences.
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Grade
Thesis
Argument Structure
Evidence
0-59
depending
on
deficiency
None or
unrelated to
question
The essay is essentially
(50) or utterly (0)
devoid of structure.
Little if any evidence from the
course is used in the answer. It
fails to demonstrate a grasp of
what the authors and lectures say.
There is no research. Depending
on what was expected in the
description of the writing
assignment, this could be between
25-59.
Syntax, Usage,
Grammar,
Spelling
One error per
sentence, on
average (40).
Lower scores
are possible.
o Final Exam (30%): The final exam will be composed of three essay questions: one on American political
economy, one on comparative political economy, and one on international political economy. Each will
call for you to evaluate a policy proposal in light of what you have learned. The final exam is both
open-notes and open-book, but since you only have one our per essay, it is important to study the
problems raised in the class before the exam.
POLS 586 Exam Grading Rubric
Grade Thesis and
Textual Support
Structure
A
Answers the
Each element of the argument is supported by textual evidence drawn
question and drives from throughout the course (primarily specific references
the rest of the
accompanying your interpretation of the referenced material, rather
essay
than direct quotes). No major source of evidence is ignored – counterarguments are addressed and defeated.
B
Answers the
Each element of the argument is supported by textual evidence from the
question, but some course, but major sources of evidence (such as counter-arguments) are
of the paper
ignored. OR The evidence used is insufficient to support one or more
ignores it
of the claims in the paper. OR Much of the support consists of direct
quotes without interpretation.
C
Does not match up The evidence, when taken as a whole, fails to support the paper’s thesis
with every element or to draw out the most important similarities and differences between
of the question, or
the authors, with necessary steps in the argument being assumed instead
the essay is a set of of demonstrated. Much relevant evidence is omitted and irrelevant
arguments that
evidence may be present. Textual references lack specificity. Counterproceed without
arguments are ignored.
logical order
D
Does not match up At least one major element of the essay’s argument has substantial
with most elements evidence from the course that supports it. However, textual references
of the question; the are generally vague or irrelevant.
essay is little more
than a “data dump”
F
The essay is
Little if any evidence from the course is used in the answer. It fails to
devoid of structure demonstrate a grasp of what the author said, much less to interpret or
critique that argument.
o Participation (29%): This grade is based on your participation during our small-group in-class exercises.
Everyone who shows up promptly for class and then discusses the exercise with their group members
will receive a perfect participation grade. If you are late or silent or leave early during a group
participation exercise, you will lose credit for the exercise in proportion to how much you missed or for
how much of the assignment you were silent. If you are absent, you will receive a zero for the exercise.
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Points Rubric for Determining Your Course Grade
Points Possible
% Of Your
Final Grade
Academic Integrity
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1 (but required
Exercise
to pass)
Assignment 1
100
10
Assignment 2
100
10
Assignment 3
50
5
Assignment 4
150
15
Participation Exercises
190 (divided evenly
19
between exercises)
Final Exam
400
40
TOTAL
1000
100%
A = 895 and above (90%-100%) B = 795-894 (80%-89%)
C = 695-794 (70%-79%) D = 595-694 (60%-69%) F = 594 and below (0%-59%)
Course Policies
Late/Incomplete Policies for PLSK 586
o There will be no incompletes in this class, barring actual hospitalization after the withdrawal deadline has
passed.
o Late work will receive zero credit
University Drop Policy
If you discover that you need to drop this class, you must go to the Records Office and ask for the necessary
paperwork. Professors cannot drop students; this is always the responsibility of the student. The Records
Office will provide a deadline by which the form must be returned -- completed and signed. Once you return
the signed form to the records office and wait 24 hours, you must go into Duck Trax and confirm that you
are no longer enrolled. Should you still be enrolled, FOLLOW-UP with the records office immediately! You
are to attend class until the procedure is complete to avoid any penalty for absences. Should you miss the
deadline or fail to follow the procedure, you will receive an F in the course.
Academic Integrity
o
University Statement on Academic Integrity: Texas A&M University - Central Texas expects all students to
maintain high standards of personal and scholarly conduct. Students guilty of academic dishonesty are subject to
disciplinary action. Academic dishonesty includes but is not limited to: cheating on an examination or other academic
work, plagiarism, collusion, and the abuse of resource materials. The faculty member is responsible for initiating action
for each case of academic dishonesty. More information can be found at www.tamuct.org/studentconduct.
o
Common Violations to Avoid. Some common violations of academic integrity that I have observed
while teaching this class at TAMU-CT are


Receiving assistance or answers on any coursework from anyone other than the instructor. A single
“shared” or plagiarized answer or journal entry is sufficient to trigger the Academic Misconduct policy.
If you provide your work to someone else and they proceed to copy part or all of it, both of you will be
deemed to have violated the policy.
Plagiarism. This is found in two forms. Avoid both of them.
o Use of direct quotes without quotation marks. Even if you are just using three- or four-word
phrases, you need to surround them with quotation marks if you didn’t create them yourself.
This is true even if you cite the source! Remember that changing a few words in a sentence does
not transform a direct quote into a paraphrase; instead, it transforms one long direct quote into
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several shorter direct quotes with a word of your own between each. A true paraphrase is the
expression of the cited source’s ideas in your own words.
o Paraphrasing another person’s words without citing the source.
o
Instructor-Imposed Penalties


The normal penalty for a violation of academic integrity (whether or not it is specifically listed above) in
any of my classes is a grade of zero for the work or a deduction of 20% (two letter grades) from your
course grade, whichever is greater. The infraction will be reported to the TAMU-CT administration,
with a recommendation for probation in the case of deliberate violation or no further action in the case
of clearly inadvertent violation.
The (a) outright purchase, download, or completion by others of a homework assignment or final exam,
or (b) multiple violations of academic integrity (whether the previous violation was in this course or
other courses) display such serious disregard for academic integrity that either one of them will result in
course failure and recommendation for expulsion by the TAMU-CT administration.
Disability Support Services
 If you have or believe you have a disability and wish to self-identify, you can do so by providing documentation to the
Disability Support Coordinator. Students are encouraged to seek information about accommodations to help assure
success in their courses. Please contact Vanessa Snyder at (254) 501-5836 or visit Founder's Hall 114. Additional
information can be found at http://www.tamuct.edu/departments/disabilitysupport/index.php
Tutoring
 Tutoring is available to all TAMUCT students, both on-campus and online. Subjects tutored include Accounting,
Finance, Statistics, Mathematics, and Writing (APA). Tutors are available at the Tutoring Center in Founder's Hall,
Room 204, and also in the Library in the North Building. Visit www.ct.tamus.edu/AcademicSupport and click
"Tutoring Support" for tutor schedules and contact info. If you have questions, need to schedule a tutoring session, or
if you're interested in becoming a tutor, contact Academic Support Programs at 254-501-5830 or by emailing
cecilia.morales@ct.tamus.edu.
o Chat live with a tutor 24/7 for almost any subject on your computer! Tutor.com is an online tutoring platform
that enables TAMU-CT students to log-in and receive FREE online tutoring and writing support. This tool
provides tutoring in Mathematics, Writing, Career Writing, Chemistry, Physics, Biology, Spanish, Calculus,
and Statistics. To access Tutor.com, click on www.tutor.com/tamuct.
Library Services
Library distance education services aim to make available quality assistance to Texas A&M University Central Texas students seeking information sources remotely by providing digital reference, online
information literacy tutorials, and digital research materials. Much of the TAMU-CT collection is available
instantly from home. This includes over half of the library’s book collection, as well as approximately
25,000 electronic journals and 200 online databases. Library Distance Education Services are outlined and
can be accessed at: http://www.ct.tamus.edu/departments/library/deservices.php
Information literacy focuses on research skills which prepare individuals to live and work in an
information-centered society. Librarians will work with students in the development of critical reasoning,
the ethical use of information, and the appropriate use of secondary research techniques. Help may include,
but is not limited to: the exploration of information resources such as library collections, the identification
of appropriate materials, and the execution of effective search strategies. Library Resources are outlined and
accessed at: http://www.ct.tamus.edu/departments/library/index.php
Instructor’s Personal Statement (not required reading, but may be of interest)
I strive to provide my students with a liberal arts education. Such an education is intended to expand
human potential by emphasizing critical thinking skills, strong writing and oral communication skills, and
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perceptive responses to others’ arguments. These goals enable students to become lifelong learners,
community members, and ultimately to lead rewarding lives. Therefore, under the broad rubric of a liberal
arts approach to teaching, I emphasize four objectives in my teaching: development of critical thinking
skills, advancement of writing and speaking skills, moral development, and mastery of what in my judgment
constitutes the “core” of the area under study. These goals determine how I construct course syllabi, which
materials I use, and how I manage the classroom.
Critical Thinking Skills
I divide critical thinking skills into three components. First, students must be perceptive readers and
listeners. In nearly all courses, there are either sections of the readings, lectures, or class handouts which we
discuss and debate, nearly line by line. The point of these exercises is to draw students’ attention to the
multiple ways in which one might read a phrase or argument. Even where the course readings consist
largely of a standard textbook, I try to model this skill in class discussions by initially responding to many
questions with “Are you asking X, Y, or Z?” Understanding the nuances of an argument is a prerequisite to
analyzing it.
Second, students should have the ability to challenge and dissect arguments made by the course
materials, fellow students, or myself. There are some students who are looking for “the way it is” to be
handed to them from on high. I aim to challenge those students by presenting concrete, unsolved puzzles,
and then presenting a number of possible solutions, requiring them to compare the evidence for each. Since
the questions I ask in class are usually open questions within the discipline of political science, there are no
easy answers. When I open a class discussion, gage with students doing discussion exercises, or grade
homework assignments, I play “devil’s advocate” for each student or group, taking a different position as I
interact with each student. It is therefore disappointing when students simply parrot back what they believe
the professor wants to hear. Their own thoughts count.
Just as important as the ability to analyze an argument is the ability to construct and defend one,
choosing one among several imperfect explanations as the “best bet” for explaining a phenomenon or the
superior normative framework. There are some students who are very good at critiquing existing
explanations, but who then use this skill as an excuse to avoid argument altogether: “None of these
explanations are perfect, so it’s all just a matter of opinion.” I force students to weigh the strengths and
flaws of each competing explanation and identify the one which is most likely to be correct. For empirical
questions, I require them to devise some way in which their preferred explanation could be tested. For
normative questions, I require them to apply their framework to difficult moral questions. In sum, I try to
combine the focus on argument dissection that one finds in debate with the focus on puzzle-solving that one
finds in science and philosophy.
Writing and Argumentation Skills
As a former debater and debate coach, I appreciate the importance of being able to write and argue
clearly. Of course, one of the most important ways to accomplish this is by assigning writing (and, I other
courses, speaking) activities that require effective argument. Ideally, provision for revision and
resubmission would be part of every course, but in 8-week or summer courses this is difficult. In order to
help students proofread their work, I set up a web site illustrating the most common student grammatical
errors: word mix-ups, sentence fragments, agreement of subject and verb, and improper comma or
apostrophe usage. I am then able to simply write the number of the error next to it on the page so that the
student can look up the error and the solution. This technique allows me to focus my comments on the
thesis, structure, and style of students’ essays.
Moral Development
One goal of a liberal arts education is to render students more capable of self-reflection and positive
development. Moral education is essential to this process, yet may be the most difficult task facing an
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educator. Students must first be convinced that the ethical life is the best life. Fortunately, most students
already have a set of values, albeit sometimes under-examined and often inconsistent ones. The task of the
professor is to challenge their moral beliefs in such a manner that students have to choose between
competing values and become more consistent in their moral judgments. It is not the task of the professor to
ensure that students adhere to a particular value system or ideology; instead, the ideal professor will
challenge students of any ideology and make them more consistent in their judgments.
For this to be possible, students need to recognize their own underlying assumptions (often their religious
faith, combined with a cynical view of human behavior) that make a system of values possible. They must
then be able to defend the connections between those assumptions and their value choices. In short,
political science needs to be seen as part of a broader liberal arts curriculum which prepares students to do
justice (as students understand it) in the world. Otherwise, we risk training sophists who simply use their
skills to manipulate others.
Subject Mastery
Finally, each class I teach has a certain “core” of material I expect students to master. This material is
the necessary data for intelligent discussion of the questions posed by the course. Mastery is different than
memorization; it mean being able to apply the material to an unanticipated question or situation.
Accordingly, units are structured around great unanswered questions or moral dilemmas. The nature of
these questions determines the type of class presentation. In this class, I typically tackle a puzzle using a
PowerPoint presentation and then use a combination of discussion work and homework to have students try
to solve the puzzle. The final exam is based on both lectures and readings, and primarily serves as an
incentive to study the course materials.
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Course Schedule – Check web site for updates!
Date
Jan 13
Jan 15
Jan 20
Topic
Introduction to Political Economy: The
United States Federal Budget
NO CLASS: MLK Jr. Day
Jan 22
Jan 27
Still “Two Americas?” The Political
Economy of Race and Class
Jan 29
Feb 3
Feb 5
Comparative Political Economy:
Industrialized Nations
Feb 10
Social Welfare States
Feb 12
Critical Political Economy
Feb 17
Development Policy
Feb 19
Feb 24
Feb 26
International Political Economy
March 3
The Great Recession and After
March 5
Final Exam
Readings/Assignments
None
Weaver, Chapter 3, pp. 99-112, 123-134
Suggested: King, “The Other America” (BB)
King, “The Other America” (BB)
Academic Integrity Exercise Due
Assignment 1 Due
Howell, “The Austerity of Low Pay” (BB)
Weaver, Chapter 1
Weaver, Chapter 2, pp. 83-96
Weaver, Chapter 3, pp. 112-123
Weaver, Chapter 4, pp. 135-168
Ikenberry, “The Irony of State Strength” (BB)
Assignment 2 Due
Esping-Andersen, “The Three Worlds of Welfare
Capitalism” (BB)
Holliday, “Productivist Welfare Capitalism” (BB)
Marx, “Alienated Labor” and “Private Property
and Communism” (BB)
Assignment 3 Due
Esteva, “What is Development?” (BB)
Mittelman, “The Development Paradigm and its
Critics” (BB)
Engel, “Development Economics” (BB)
Fairbrother, “Development: Institutional
Perspectives” (BB)
Weaver, Chapters 5-6
Ladewig, “Trade: Neoclassical Liberal Views on
Impacts” (BB)
Assignment 4 Due
Weaver, Chapter 2, pp. 72-75
Weaver, Chapter 4, pp. 168-177
Archer, “Financial Crises” (BB)
Bond, “Neoliberalism and its Critics” (BB)
Review Lecture and Reading Notes
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Political Science 586
Assignment 1: The Federal Budget
While balancing the federal budget (i.e. eliminating substantial deficits or surpluses) is generally sound policy, there are
reasons a country might want to run a deficit (to stimulate a fragile or recessionary economy) or a surplus (to cool down an
overheated economy and reduce inflation). In the long run, one year’s budget is less significant than the debt-to-GDP ratio.
As an economy grows, it can handle more debt, but a fiscal rule of thumb is to keep debt to 60% of GDP or less. The number
is arbitrary but has international significance as a benchmark for fiscal responsibility. Keeping the debt-to-GDP ratio below
60% helps keep interest payments manageable and preserve confidence in the country’s fiscal stability, thereby reducing
inflation and encouraging investment.
Your challenge in this assignment is to reduce the debt to 60% of GDP by 2021. To do so, you will use an online budget
simulator, which can be accessed at http://crfb.org/stabilizethedebt/ (link is on Blackboard under Assignment Resources).
This simulator presents you with tough choices about a range of budget programs. By clicking the (i) symbol next to each
choice, you can learn about what you’re cutting or spending on. When you successfully complete the simulation, you will be
able to print your results and write up a short analysis of your proposed budgetary changes.
Instructions
1. Go to http://crfb.org/stabilizethedebt/ (link is on Blackboard).
2. Complete the simulation. If you get “Uh oh!” as your result, then go back and make changes until you are able to get
at least a “Nice Try!” message, indicating that your plan will reduce the debt to 60% of GDP or less.
3. Once you have successfully reduced debt to 60% of GDP or less, click “View Or Save PDF,” save the pdf file, and
then print out the PDF file. Be sure to put your name on it.
4. On a separate sheet, type or neatly handwrite the answers to the following questions:
a. What three programs did you cut the most, in dollar terms? To identify these, simply look at the blue-shaded
programs in your pdf file, and identify the “largest” three negative numbers.
b. For each of these programs/cuts, identify who will be harmed by the cut. These people – if organized – will
oppose your budget.
c. Is your budget politically feasible? That is, how likely is Congress to pass a budget like yours?
d. What surprised you about the simulation or the federal budget in general?
e. Are there things you wanted to do but were unable to do in the simulation (i.e. programs you wanted to cut or
create but couldn’t because of the limited choices offered in the simulation)?
f. What would be the economic consequences of your plan, in both the short run and the long run?
g. Would you implement your proposed budgetary changes if you could? Why or why not?
5. Turn in your answers together with the printed pdf file.
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11
a.
Political Science 586
Assignment 2: Comparative Economic Performance
Name________________________________
PRINT CLEARLY!
This exercise aims to familiarize you with social science research on the economic performance of different socialeconomic systems. It also aims to reinforce how social science approaches controversial issues: by first
formulating hypotheses, then gathering data to test the hypotheses, and finally comparing the data to what the
researcher expected to find in order to evaluate each hypothesis. Note that a good grade is possible even with
terrible predictions (this is – or ought to be – how social science works). So don’t read ahead – just take the
exercise one step at a time. You will need a calculator, a pen, a pencil, and a computer with Internet access for
this exercise.
A. Think about what leads to per-capita economic growth. What policies and attitudes should be good for the
economy? I’ve listed some factors that might be relevant below. For each one, indicate how you would
expect that factor to affect economic growth – “INCREASE(S)”, “DECREASE(S)”, or “DO(ES) NOT
AFFECT.” These are your hypotheses (expected empirical relationships). Then write a few sentences
explaining the theory behind your predictions.
1. Tax Policies.
a. In general, higher taxes as a share of the economy ____________ growth.
b. Higher corporate taxes should _______________ growth.
c. Higher personal income taxes should ______________ growth.
d. Higher consumption taxes should _______________ growth.
e. The most important of these statements (i.e. best test of your theory) is
(circle one) a b c d
f.
The reasoning (theory) behind my hypotheses is:
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2. Social spending.
a. In general, higher social spending as a share of the economy ____________ growth
b. Higher education spending should _______________ growth.
c. Universal, government-provided health insurance should ______________ growth.
d. The most important of these statements is (circle one) a b c
e. The reasoning (theory) behind my hypotheses is:
3. Labor policy.
a. National bargaining over wages (a high degree of wage coordination) should
____________ growth
b. Minimum wage laws should _________________ growth.
c. A higher proportion of workers in unions should _____________ growth
d. The most important of these statements is (circle one) a b c
e. The reasoning (theory) behind my hypotheses is:
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4. Politics.
a. A high level of popular participation in politics (voting) should ______________ growth
b. Economic growth will be high when (circle one)
Leftists [Socialists or Social Democrats] Centrists [free market liberals like US Democrats] Rightists [conservatives like US Republicans]
receive more of the vote.
c. Economic growth will be low when (circle one)
Leftists [Socialists or Social Democrats] Centrists [free market liberals like US Democrats] Rightists [conservatives like US Republicans]
receive more of the vote.
d. The most important of these statements is (circle one) a b
e. The reasoning (theory) behind my hypotheses is:
c
B. Predict the economic performance of the following dozen social-economic systems. Each system is
identified only by a letter. You are trying to predict the average annual per capita GDP growth rate of each
country over a ten-year period (2001-2011). All of these are industrialized democracies which have long
since gone through the developmental “take-off” associated with very high levels of growth. Moreover,
they experienced recession in the 2000s. Hence, these systems all have relatively low rates of growth
(Between -0.2% and 1.8%) – but which ones had lower rates and which ones had higher rates? Simply
follow these steps to make your predictions (you should use a pencil for the rest of this exercise):
1. Look at the data in Table 2 (attached). Taking into account this data and each of your hypotheses,
complete the Taxation, Social Welfare, Labor Policy, and Political Orientation columns in
Table 1. Each cell should have H, M, or L – which stand for whether you expect that factor to
produce High, Medium, or Low economic growth in each system. Each column should have 4 L’s,
4 M’s, and 4 H’s. Ignore the R/W, Actual Growth, and Actual HML columns for now.
14
Table 1: Applying and Evaluating Your Hypotheses
System Taxation R/W*
Social
R/W* Labor
Welfare
Policy
A
B
C
D
E
F
G
H
I
J
K
L
* Ignore these columns for now.
R/W*
Political
Orientation
R/W*
Actual Actual
Growth* HML*
2. Now use what you’ve written in Table 1 to rank order A-L from HIGHEST expected growth to
LOWEST expected growth on the line below this question. (Example: B, D, E, L, K, A, J, I, H,
C, F, G means that you expect B to have very high growth and G to have very low growth). Use any
system you want, but an H-H-H-H country ought to have pretty high expected growth and an L-L-LL should have pretty low expected growth.
____________________________________________________________________________
3. Now fill in the Expected GDP Growth Rates column of Table 2 with the following average percapita growth rates, using the rank-ordering you established above: 1.8, 1.7, 1.2, 1.2, 0.9, 0.9, 0.9,
0.7, 0.6, 0.6, 0.5, -0.2. Congratulations! You have formulated hypotheses about comparative
political economy and used your hypotheses to make predictions about national growth rates.
C. Now let’s see whether your hypotheses are correct:
1. First, look at the real country names and growth rates on Blackboard (under Assignment
Resources).
a. Copy the Actual Growth Rate for each system onto Table 1
b. Copy the Actual Growth Rate for each system onto Table 2.
c. Look at Table 2. Subtract your prediction for each country from the actual figure for
that country. Now drop any negative sign to get the absolute value of the difference.
(Example: if you wrote 0.7 and the real growth rate was 0.6, you would calculate 0.6-0.7,
which is -0.1. Dropping the negative sign gives you the absolute value of the difference,
which is 0.1) This is your error for each country. Write your error for each system
(country) in the Error column of Table 2.
d. Now add all of your errors together. What is the total? _______
e. If you knew nothing about any country and simply guessed the average growth rate (0.9%)
for every single country, your errors would add up to 4.6%. Did you do better (your total
error is lower than 4.6%) or worse (your total error is higher than 4.6%) than simply
guessing the average for every case?
15
2. Now it’s time to see which of your hypotheses fared best (and worse). Go back to Table 1. In the
Actual HML column of Table 1, write H if the country’s Actual GDP Growth Rate (the data
from the website, not your expectations) was 1.2 or higher, M if the country’s growth rate was
0.7-0.9, and L if the country’s growth rate was 0.6 or lower.
3. Now fill in the R/W columns to the right of each of your predictions on Table 1 by writing in 1
if your prediction matched the HML column (they are the same letter) and 0 if your prediction
did not match the HML column (they are different letters). (Example: You wrote H for
Taxation, L for Social Welfare, L for Labor Policy, and M for Political Orientation. If the HML cell
for that country says M, then you would write 0, 0, 0, 1 in the R/W columns, from left to right).
4. Add up each R/W column. What are the totals?
Taxation: _____ Social Welfare: _____ Labor Policy: _____ Political Orientation: _____
5. On any set of issues, you could have scored 4 right (R/W) by simply picking one letter (say, M) and
writing it in for every system. Which hypotheses, if any, performed better than just guessing the
average?
6. Which hypothesis fared the best?
7. Which fared the worst?
D. Now that you have created economic theories, constructed hypotheses, used data to make predictions, and
tested those predictions against the facts, write 1000-2000 words reflecting on the performance of your four
theoretical approaches and then suggesting a set of policies that governments should adopt based on the
results of your analysis. Ideas:
1. Which factors seem to best predict economic performance in modern industrialized democracies?
2. Which factors seemed completely irrelevant?
3. Were there any surprises in the results?
4. Did you get anything completely backwards (a very low R/W score may be a sign that you had it all
wrong)?
5. Do these results change your opinion about the economic effects of taxes, political ideology, social
welfare spending, or labor unions?
6. Do these results give you any ideas for changing or improving the US economy? Do they tend to
give you more or less confidence in what mainstream economists recommend?
7. Was this a fair test of your hypotheses, or could you design a better one?
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Table 2: Data on each system (averages from 2000-2010 unless otherwise specified)
Taxation
System
A
B
C
D
E
F
G
H
I
J
K
L
Taxes
as %
GDP
Corp
Income
Tax as
% GDP
Pers
Income
Tax as
% GDP
28.8
44.1
33.3
43.6
36.1
42.0
27.1
38.3
42.8
47.9
35.4
26.7
5.5
3.1
3.5
2.7
1.6
3.1
3.7
3.2
10.0
3.2
3.2
2.4
11.2
13.1
11.9
7.6
9.0
10.8
5.2
7.1
10.0
14.0
10.2
9.1
Social Welfare
Consumpt
Taxes as %
GDP
7.5
10.3
7.7
10.7
10.1
9.8
4.6
10.7
11.6
12.4
10.4
3.9
Gov’t
Social
Spend
as %
GDP
Gov’t
Educ
Spend
as %
GDP
Share of
Pop w/
Gov’t
Health
Insur.
2010
17.2
27.1
17.3
30.3
27.0
25.3
17.4
21.3
22.0
28.6
20.9
16.8
4.8
6.1
5.1
5.7
4.6
4.6
3.6
5.4
7.0
7.0
5.2
5.5
100
99
100
99.9
89.1
100
100
98.9
100
100
100
24.3
Labor
Minim
Wage
Law?
No
Yes
Yes
Yes
No
No
No
Yes
No
No
No
Yes
Wage
Coord
Score1
2000
2
4
1
2
4
4
5
4
5
3
1
1
Political Orientation
Union
Density2
2000
24.7
55.6
28.1
8.1
25.6
36.1
22.2
23.1
53.7
79.1
29.7
12.8
Voter
Turnout
94.4
90.6
61.6
72.9
75.8
81.9
64.3
78.7
76.4
82.4
62.2
55.2
% Left
Vote
7
38
20
31
19
27
26
3
55
42
0
0
% Cent
Vote
% Right
Vote
40
52
65
45
49
19
64
68
34
46
57
49
42
11
9
2
28
49
4
27
8
10
33
46
Growth
Expected
GDP Growth,
2001-2011
Actual GDP
Growth,
2001-2011
Error
Sources: OECD (taxation and social spending, government health insurance), World Bank (education spending), Kenworthy 2001 (wage coordination scores), Visser
2006 (union density), IDEA (voter turnout), Party Manifesto Project (Left/Center/Right vote: < -14 = left, -14 to 14 = center, > 14 = right)
1
Wage Setting Coordination Scores. 1 = fragmented wage bargaining, confined largely to individual firms or plants; 2 = bargaining mainly at industrylevel with little or no pattern-setting; 3 = industry- level bargaining with reasonably strong pattern-setting but only moderate union concentration; 4 =
centralized bargaining by confederation(s) or government imposition of wage schedule/freeze – without a peace obligation, high degree of union
concentration and extensive, regularized pattern-setting, tacit coordination of bargaining by employer organizations with extensive pattern-setting; 5 =
centralized bargaining by confederation(s) or government imposition of wage schedule/freeze – with a peace obligation, extremely high degree of union
concentration and coordination of industry bargaining by confederation, extensive coordination of bargaining by employer organizations with extensive
pattern-setting.
2
Union density = “union membership as a proportion of wage and salary earners in employment.”
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Political Science 586
Name ______________________________
Assignment 3: Critical Political Economy Worksheet (Two-Sided)
1. Standard political economy proceeds from the fact of ____________________________.
2. What is the present fact of political economy from which Marx proceeds?
3. How does a worker become a slave to his/her objects?
4. What is species-life?
5. Who is the alien power over man – gods, nature, or another man?
6. Why does Marx reject Proudhon’s concept of equal wages for all?
7. Name one attribute of “crude, unthinking communism.”
8. What form of communism does Marx favor?
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9. How does overcoming private property emancipate people?
10. A being only regards himself/herself as independent when…
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Political Science 586
Assignment 4: Doha Round Position Paper
Your task is to identify the position(s) of the European Union on a number of issues up for negotiation in the
Doha round. You will each assemble a well-written and specific position paper (suggested length of 10002000 words), with properly cited research, that addresses and answers the following questions:
1. What is the EU’s best interest when it comes to liberalizing agricultural trade?
2. What is the EU’s position on each of the three pillars of agricultural trade negotiations? They are:
a. Rules on export subsidies
b. Rules on domestic support
c. Tariff cuts
3. How united is the EU on each of the positions in #2?
4. What is the EU’s best interest when it comes to liberalizing nonagricultural trade in manufactured goods
(NAMA)?
5. What is the EU’s position on the “Swiss formula” for lowering tariffs on manufactures in developing
countries? Does it go too far, not far enough, or is it just right?
6. How united is the EU on the position in #5?
7. What is the EU’s best interest when it comes to liberalizing trade in services?
8. Which of the four modes of service delivery does the EU, as an organization, wish to liberalize (if any)? They
are (with examples):
a. Cross-border supply (mode 1)—the service is supplied from one country to another. The supplier
and consumer remain in their respective countries, while the service crosses the border. For
example, a U.S. architectural firm based in Chicago is hired by a client in Mexico to design a building.
The U.S. firm does the design in Chicago and sends the blueprints to its client in Mexico.
b. Consumption abroad (mode 2)—The consumer physically travels to another country to obtain the
service. A Mexican client travels to the United States to obtain the services of a U.S. architectural
firm.
c. Commercial presence (mode 3)—The supplier of a service establishes a branch, agency, or wholly
owned subsidiary in another country and supplies services to the local market. A U.S. architectural
firm establishes a subsidiary in Mexico to sell services to local clients.
d. Presence of natural persons (mode 4)—Individual supplier travels temporarily to the country of the
consumer. A U.S. architect travels to Mexico to provide design services to her Mexican client.
9. How united is the EU on each of the four modes of services?
10. How important is each of the major issue areas of the Doha Round – agriculture, NAMA, and services – to
the EU and its members? That is, where would the EU be most and least likely to make concessions in these
issue areas?
11. How important is the success of the Doha Round to the EU as an organization? That is, what concessions
are acceptable to the EU’s prime movers for the sake of getting a deal done?
12. To what extent would a Doha deal by the EU be anti-democratic? Could one survive popular votes in the
EU’s member nations?
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