The U.S. Economy: Econ 240
Department of Economics, Vassar College
Spring 2008
Professor: Robert Rebelein
Office: 133A Blodgett Hall
Hours: Mondays 2:30-5pm, Wednesdays 1-3pm, and by appointment
Phone: 437-7393
email: rebelein@vassar.edu
Course Description:
The U.S. economy has dominated the world economy for the last 60 years. With only five
percent of the world’s population, it consumes roughly 25 percent of the world’s resources and
produces approximately 25 percent of the world’s output. However, the U.S. economy faces
substantial challenges in the years to come. Increasing international competition for jobs and
resources, an aging population, persistent trade and government budget deficits, and rapid
growth in entitlement programs present significant challenges to current and future policy
makers. This course will explore the economics of each of these issues as well as some of the
potential solutions.
The goal of this course is to help students better understand the economic issues policy-makers
will be called upon to resolve in the coming years. These issues should be of particular interest
to current young people since they will most likely bear the largest burden of the cost of
addressing them.
Textbook:
The two main texts for this course are:
 Taking Sides: Clashing Views on Economic Issues, 13th edition, Edited by Frank J.
Bonello and Isobel Lobo; McGraw-Hill, 2008
 Issues in Economics Today, 4th edition, by Robert C. Guell; McGraw-Hill Irwin, 2008
A list of additional readings will be distributed during the first week of class. The vast majority
of the readings will be available through the course Blackboard site. In addition, you are strongly
encouraged to pay attention to articles that may appear in the popular press or on the internet.
Prerequisite:
Econ 100: Introduction to Macroeconomics
Grading:
Your grade for this course will be determined by your participation in classroom discussions,
your performance on several writing assignments, and a final exam. These will be weighted with
the following percentages:
Class Participation
Issue Summaries
Issue Analyses
Final Exam
25%
20%
30%
25%
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Course Structure:
For the first 2-3 weeks, the primary format for this course will be lectures. The major objective
of this period is to give you a brief economic history of the U.S. and to review some basic
macroeconomic tools. The purpose of the history section is to give you a sense of the context in
which some of today’s most popular government programs came into existence. For the rest of
the semester, we will study various economic issues one at a time. During this period, the course
format will shift to classroom discussions, with student involvement being of paramount
importance.
Class Participation:
To truly understand the economic issues we will explore this semester requires each student to
do the relevant readings before coming to class and having thought about the day’s topic(s) with
some depth. (The Issue Summaries will help with this part.) All of us should remember that
everyone’s success depends on engaged participation. Come to class prepared to engage
constructively with your classmates in an exchange of ideas.
Each week I will ask two or three students to prepare to facilitate the next week’s discussion of
the readings. These students should bring questions, thoughts, concerns or insights from the
readings and be prepared to discuss them with the rest of the class (it often helps to bring these in
as written notes, particularly if you are nervous about speaking in public). I encourage you to
consider using handouts and visual aids as part of your facilitation. You may also want to seek
out additional data or readings on your topic.
Remember that it is in your interest to work to make each discussion a success. All students
should have the opportunity to have their views heard. A successful discussion does not
necessarily require consensual agreement any more than disagreement necessarily leads to
personal conflict. Some of the material we will read this semester may engender strong feelings
within people. There will be times I will raise ideas or ask questions that suggest views that are
not politically correct (for example, “Why should we care if people have to live in poverty?”)
These questions can encourage you to think about things we often take for granted. Clarifying
our reasons for a particular belief can help to clarify what actions we should take on an issue.
(For example, “How much are you willing to pay to make sure no one has to live in poverty?”)
Issue Summaries are short, 1-1.5 page summaries of the topic being discussed. You will be
expected to complete one Issue Summary for eight (8) of the topics we cover this semester.
These summaries should identify the main points in the readings and the major areas of
contention for the topic. These can serve as good ways to begin to organize your thinking on
each of the topics. Due dates will be announced in class, generally the first day of a new topic.
An Issue Analysis is a longer report that explores a particular topic in more depth. These should
be 7-10 pages in length and you are required to complete two (2) of them during the semester.
You may choose the topics on which to write your analyses, and may write on topics that are not
covered in class. At least one of these papers must be done by February 28th. (While it is not
required, I encourage you to submit a rough draft of your analysis for you and I to discuss before
you write the final version.)
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The Final Exam schedule will be announced early in the semester. Make sure your travel plans
for the end of the year do not conflict with the date of the final! The final exam will be
comprehensive.
Scarce Resources:
It is worth noting that there is no way we can cover all of the possible issues during a single
semester. I have chosen a set of issues that I think are among the most important, although I am
open to adding to or subtracting from the list as time and circumstances suggest. The list of
topics I have chosen for us to discuss is as follows: Social Security, Poverty (including income
inequality and welfare), Health Care, National Debt, Immigration, International Trade (including
outsourcing), Taxation, and International Finance. (Other good topics include Energy Needs, the
Environment, Consumer Debt, Education, Crime, and Infrastructure Needs.)
Students are responsible for knowing and adhering to the policies published in the course
catalogue and the student handbook.
Students should check the course blackboard site regularly for information relevant to the course.
Academic accommodations are available for students with disabilities who are registered with
the Office of Disability and Support Services. Please bring me a copy of your DSS
accommodation letter early in the semester so we can discuss any desired accommodations.
Plagiarism:
Plagiarism is a very serious offense and will be dealt with severely. Merriam-Webster’s
Online Dictionary defines “plagiarize” as “to steal and pass off (the ideas or words of another) as
one's own; use (another's production) without crediting the source; to commit literary theft;
present as new and original an idea or product derived from an existing source.” The Student
Handbook gives specific information about Vassar’s Academic Integrity Policy.
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Some relevant websites:
Congressional Budget Office
-- studies on assorted fiscal issues
U.S. Bureau of Economic Analysis
-- GDP and other US aggregates
U.S. Bureau of Labor Statistics
-- US labor force and price statistics
U.S. General Accounting Office
-- studies on selected fiscal issues
U.S. Department of Health and Human Services
-- poverty statistics
U.S. Internal Revenue Service
-- U.S. tax statistics
U.S. Social Security Administration
-- structure of and forecasts for the future of SS
The Brookings Institution
-- think tank w/ studies on almost everything
The Urban Institute
-- think tank w/ policy studies on many topics
Tax Policy Center
-- A joint Brookings-Urban site w/ numerous
excellent studies on tax policy issues
The Cato Institute
-- think tank w/ various policy studies
Dollars and Sense
-- pseudo-think-tank
Centers for Medicare and Medicaid Services
-- lots of info for those signing up for either
Medicare
-- main Medicare website
Economic Report of the President
-- lots of U.S. data for past years
Joint Center for Poverty Research
-- lots of studies on poverty
Chicago Climate Exchange
-- marketplace for certain pollution permits
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www.cbo.gov
www.bea.gov
www.bls.gov
www.gao.gov
www.hhs.gov
www.irs.gov/taxstats/
www.ssa.gov
www.brookings.org
www.urban.org
www.taxpolicycenter.org
www.cato.org
www.dollarsandsense.org
www.cms.hhs.gov
www.medicare.gov
www.gpoaccess.gov/eop/index.html
www.jcpr.org
www.chicagoclimatex.com
Outline
I. Introduction & Background
A. AD/AS
B. A Brief Economic History
1. Pre-1920’s
2. 1920’s
3. 1930’s – 1945
4. 1946 – early 1970’s
5. 1980’s & 1990’s
6. The 21st Century so far
II. Individual Topics
 National Debt
 Immigration
 Social Security
 Health Care
 Poverty/ Income Inequality/ Welfare
 International Trade Issues
 International Finance Issues
 Taxation
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