History 342.The History of Economic Thought
Prof. Peter H. Hoffenberg
Office: Sakamaki Hall B410
Phone: 956-8497 and Email: peterh@hawaii.edu
Lectures:
Consultation Hours: TBA
Introduction:
History 342 invites students to consider the relationships between History and Economics in light of the
development of major economic theorists and their ideas, since around 1700, or so. The emphasis will be
on Western, or modern economic thought, although we will consider the important place that the nonWestern world occupied in the history of economic thought and some key non-Western economic
theorists and ideas. Those will include examples from Japan and India. We will additionally consider the
connections between the history of economic thought and wider political, social, and ethical questions,
such as policies towards the poor and the roles of government in the economy. What does consideration
of the history of economic thought tell us about the modern world and modern society itself? What are the
relationships between economic thought and modern questions of equality, freedom, nationalism,
imperialism and globalization? How might an exploration and appreciation of the significance and
development of ideas about economics, economists and the economy help us better understand both
historical and current issues?
More specifically, wee will read, discuss, and write about what Robert Heilbroner famously and
enduringly entitled the “worldly philosophers” and their ideas as they are linked to the histories of and
societies in Great Britain, Western Europe, Russia, the United States, India, Japan, China, and subSaharan Africa. In doing so, we will focus on specific topics, including, but not limited to, how we might
integrate History and Economics in our study of the past, ideas and public policy; a comparison of how
major theorists thought about significant common problems, such as prices and work; specific schools of
economic thought and doctrine, among which were Mercantilism, Free Trade Liberalism, Marxism and
Socialism; the relationship between the history of economic thought and crises, famine and the Great
Depression among those; and the relationship between economic thought and the problem of “uneven
development” within and among societies. What can the history of economic thought contribute to
answering why some countries and people are poor, while others are wealthy? Students interested in the
current discussion of globalization will also find in our readings, lectures and discussions significant
antecedents, analogies and origins in the major economic theorists and their ideas.
Readings include both primary and secondary sources, as students are encouraged to actively engage the
various dimensions of modern economic history. Lectures, readings and assignments are organized
around themes, case-studies, and a loose chronology.
Student Learning Objectives:
1. Students can identity and engage with the major figures, texts and ideas in the history of
modern economic thought.
2. Students can read, analyze and use primary and secondary historical sources as part of that
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process of identification and engagement.
3. Students can develop clear arguments using such historical sources and methods, thereby
confidently and competently expressing their positions in expository prose and oral
presentation.
4. Students can discuss and engage with modern social, political, philosophical and ethical
questions in light of economic doctrines and ideas.
5. Students can engage with and participate in with a greater sense of history, knowledge and
competence current and future discussions about the economy.
6.
Students can trace the continuities and discontinuities in economic thought and doctrine as
they relate to fundamental questions, eg. the role of the government in the economy, or the
debate about the causes of poverty.
Prerequisite(s):
Extensive background in History and/or Economics is not required, but successful completion of History
151 or 152, or Economics 130 or 131 is required. Please consult with the instructor if you have not
completed at least one of those four courses.
Required Readings Ordered by the U. H. Bookstore and ‘On Reserve’ at Sinclair Library:
Robert L. Heilbroner, The Worldly Philosophers: The Lives, Times and Ideas of the Great Economic
Thinkers
John Kenneth Galbraith, The Great Crash 1929
Amartya Sen, Development as Freedom
Albert O. Hirschman, The Passions and the Interests
Daniel R. Fusfeld, The Age of the Economist
Gareth Stedman Jones, An End to Poverty?
Additional shorter required readings will be provided by the instructor. Please check the “History 342”
box outside of Sakamaki Hall B410 if you miss when these are distributed in lecture. Extra and unclaimed
copies of the readings will await you. Those required readings are marked below with **. They
supplement and complement the above texts, and include passages from important classics in the history
of economic thought and helpful reviews of such works, or opinion pieces about issues and thinkers
relevant to the course.
Does the Free Market Corrode Moral Character? will be part of the mid- or final examination, and it will
be distributed by the instructor. You do not need to purchase that pamphlet, as it is being graciously
provided by the John Templeton Foundation, the sponsoring organization.
Background Readings:
The following are not required, but might be of assistance as we work our way through the syllabus. Most
are available at Hamilton Library.
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Cambridge Economic History of Europe
Cambridge Economic History of India
Cambridge Economic History of Modern Britain
Cambridge Economic History of the United States
R. Cameron, A Concise Economic History of the World: From Paleolithic Time to the Present
C. Rider, An Introduction to Economic History.
R. Grassby, The Idea of Capitalism before the Industrial Revolution.
D. Landes, The Unbound Prometheus.
D. Landes, The Wealth and Poverty of Nations.
Baiman and Boushey, eds. Political Economy and Contemporary Capitalism: Radical Perspectives on
Economicy Theory and Policy.
L. Robbins, A History of Economic Thought: The LSE Lectures, Steven G. Medema and Warren J.
Samuels, eds.
D. K. Foley, Adam’s Fallacy: A Guide to Economic Theology
F. Braudel, Civilization and Capitalism, 15th-18th Century (3 volumes)
J. A. Nelson, Economics for Humans
Donald Winch, Riches and Poverty: An Intellectual History of Political Economy in Britain, 1750-1834
R. Backhouse and B. Bateman, eds. The Cambridge Companion to Keynes
K. Haakonssen, ed. The Cambridge Companion to Adam Smith
J. Schumpeter, Ten Great Economists
Barber, A History of Economic Thought
Required W.W.W. Sources:
The following will be helpful for readings, lectures and essays. Please subscribe for the term, so that you
have access to relevant book reviews and discussions. These are recommended for their usefulness and
interest, not for any particular economic or ideological position, or endorsement.
Please adjust your spam filters accordingly.
The History of Economic Thought Website at http://cepa.newschool.edu/het/index.htm
Economic History at http://eh.net/lists/
Post-Autistic Economics Review at pae_news@btinternet.com and www.paecon.net
Union for Radical Political Economics at http://www.urpe.org/index.html or urpe@labornet.org
Disabled Student Policy:
If you need accommodation because of a disability, please do not hesitate to contact the KOKUA
Program (V/T) at 956-7511 or 956-7612 and in Room 013 in the QLCSS and/or speak with the instructor
to discuss specific needs. Confidentiality and privacy will be respected. The instructor will work with you
and the KOKUA Program to meet access needs related to the disability and to ensure a meaningful and
full learning experience.
Course Requirements:
Midterm (100 points) and Final (200 points) examinations with short answers and essays for a total of 300
points. The examination questions refer to lectures, discussions and readings, including those distributed
in class. One of these examinations will include a short essay question on “Does the Free Market
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Corrode Moral Character?” a pamphlet to be distributed without charge to students.
One 5 pp research essay (50 points) discussing a “non-Western” topic. That might include, for example,
Japanese economic thought, or the economic ideas explaining rural agriculture in Africa, or how nonWestern economic thinkers have explained the “Rise of the West,” or a more detailed and focused
discussion of Sen’s economic ideas. This assignment is due the final week of instruction, but please make
an appointment during the term to discuss your topic with the instructor. An outline with sources will be
due the week after spring vacation.
Three shorter writing assignments of 2-3 pages each (25 points each for a total of 75 points) focused on
three of our major lecture topics. Address the common readings, lectures and discussions concerning that
topic, choosing one particular question that interests you. These assignments do not require any additional
readings. They are not research essays, but discussion and reflection papers asking you to answer your
own specific question, or thesis with reference to our common knowledge. Please note that you do not
have to write about all of our topics–only three of them. Each essay is due no more than two weeks after
the topic has been discussed in lecture.
Lectures, Topics and Readings:
I. Introduction and Overview: History and Economics.
Readings provided by the instructor.
II. What is the History of Economic Thought? or, What is it good for?
Heilbroner, The Worldly Philosophers, “Introduction” and “The End of the Worldly Philosophy?”
and Fusfeld, The Age of the Economist, “Introduction” and **Schabas, “British Economic Theory from
Locke to Marshall,” The Cambridge History of Science, volume 7, 171-182.
III. Thinking about Political Economy: The Early-Modern Markets, Property and Capitalism
Heilbroner, The Worldly Philosophers, “The Economic Revolution;” Fusfeld, The Age of the
Economist, “Economics and the Market Economy;” Hirschman, The Passions and the Interests; **
Howard J. Sherman, “From Feudalism to Capitalism in Western Europe,” How Society Makes Itself,
chapter 4; ** Review of Thomas C. Smith, The Agrarian Origins of Modern Japan; and **J. H. Plumb,
“The Acceptance of Modernity,” The Birth of a Consumer Society, chapter 8.
IV. The Origins? Mercantilism and The Physiocrats
Fusfeld, The Age of the Economist, “The Early Days;” ** Screpanti and Zamagni, An Outline of
the History of Economic Thought, “Mercantilism;** McCusker, “Review of Heckscher, Mercantilism,”
Economic History Services Project 2001 and ** Keith Tribe, “Continental Political Economy From the
Physiocrats to the Marginal Revolution,” The Cambridge History of Science, volume 7, chapter 10;
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V. The Founding Fathers: Adam Smith and the Scottish Enlightenment
Fusfeld, The Age of the Economist, “Adam Smith;” Heilbroner, The Worldly Philosophers, “The
Wonderful World of Adam Smith;” ** David Denby, “Northern Lights,” The New Yorker, October 11,
2004, 90-97 and Adam Smith, The Wealth of Nations, selections.
VI. Malthus, Ricardo and “The Dismal Science,” circa 1800
Fusfeld, The Age of the Economist, “Classical Economics;” Heilbroner, The Worldly
Philosophers, “The Gloomy Presentiments of Parson Malthus and David Ricardo;” ** Suzanne Rickard,
“Conversations with Malthus,” History Today, December 1999, 47-53 and Thomas Malthus, An Essay on
the Principle of Population, selections.
VII. “An End to Poverty?” Food, Population and the Poor, circa 1800
Stedman Jones, An End to Poverty?
VIII. Victorian Radicals: Karl Marx and the Utopian Socialists
Fusfeld, The Age of the Economist, “Socialism and Karl Marx;” Heilbroner, The Worldly
Philosophers, “The Dreams of the Utopian Socialists” and “The Inexorable System of Karl Marx;”**
John Cassidy, “The Return of Karl Marx,” The New Yorker, October 20 and 27, 1997, 248-259 and
** Pilbeam, “Pink Lemonade Socialists,” History Today 51 (2001), 46-51.
IX. Victorian Liberals: The Manchester School, John Stuart Mill and Individualism
Heilbroner, The Worldly Philosophers, “The Victorian World and the Underworld of
Economics;” Fusfeld, The Age of the Economist, “Classical Economics”and “The Philosophy of
Individualism” and ** “Marx and Mill,” David Denby, Great Books, chapter 24;
X. The Fin-de-Siecle: Weber, Veblen and Modern Society
Fusfeld, The Age of the Economist, “Neoclassical Economics,” “The Human Family (Up to the
New Deal sections),” and “Women and the Economy;” Heilbroner, The Worldly Philosophers, “The
Savage Society of Thorstein Veblen;” **Review of Max Weber, The Protestant Ethic and the Spirit of
Capitalism; ** Elizabeth Kolbert, “Why Work?” The New Yorker, November 29, 2004, 154-160; **
Richard Whatmore, “The Weber Thesis: ‘Unproven yet Unrefuted,’” Historical Controversies and
Historians, chapter 8 and Weber, The Protestant Ethic and the Spirit of Capitalism, selections.
XI. The Twentieth Century Giants: Schumpeter, Hayek, and Keynes.
Fusfeld, The Age of the Economist, “The Human Family” (New Deal Section),“The Keynesian
Revolution,” and Heilbroner, The Worldly Philosophers, “The Heresies of John Maynard Keynes” and
“The Contradictions of Joseph Schumpeter;”** Review of Joseph A. Schumpeter, Capitalism, Socialism
and Democracy; ** Louis Menand, “Buried Treasure,” The New Yorker, January 28, 2002, 82-88; **
Peter Clarke, “J. M. Keynes 1883-1946,” After the Victorians, chapter 7 and selections from Keynes,
Hayek and Schumpeter.
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XII. Alternative Modern Economic Thought: Radical Economics and Non-Western Models.
Sen, Freedom and Development; ** “Economics, Radical,” The Canadian Encyclopedia and **
John J. Simon, “Paul Sweezy,” The Guardian, March 4, 2004 and ** O’Bryan, “Introduction: The
Growth Idea and Early Postwar History,” The Growth Idea: Purpose and Prosperity in Postwar Japan.
XIII. Twentieth-Century Macroeconomics: Growth, Unemployment and Development.
Sen, Freedom and Development; Fusfeld, The Age of the Economist, “World War Two and the
Cold War,” “Capitalism after the Second World War” and “A Half-Century of High Theory” and **
Review of Alexander Gerschenkron, Economic Backwardness in Historical Perspective.
XIV. Why the West? Industrialization, Colonialism and the Questions of Uneven Development
** Stanley L. Engerman and Patrick K. O’Brien, “The Industrial Revolution in Global
Perspective,” The Cambridge Economic History of Modern Britain, Volume 1, chapter 16; ** Gale
Stokes, “Why the West?” Linguafranca 11 (2001), 30-38 and David Fieldhouse, “For Richer, for
Poorer?” The Cambridge Illustrated History of the British Empire, chapter 5.
XV. The Great Depression in the History of Economic Thought.
Galbraith, The Great Crash 1929; ** Arthur G. Neal, “The Great Depression,” National Trauma
and Collective Memory, chapter 3 and ** Reviews and discussion of Amity Shlaes, The Forgotten Man:
A New History of the Great Depression.
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