Economics 530 American Economic Development www.bschool.ukans.edu/home/jrosenbloom/ec530/ Professor Joshua L. Rosenbloom 213-C Summerfield Hall voice: 864-2839 * e-mail: jrosenbloom@ukans.edu Description This is a course in applied economics. As such we will be exploring the uses of economic theory to understand the historical development of the American economy from the beginning of European settlement to the present. At the same time, we will also use the study of history to cast light on the limitations of economic theory. The objectives of this class are to: (1) provide you with a basic knowledge of the chronology of American economic development, focussing on the key institutions and events that have given rise to the modern U.S. economy; (2) develop your ability to apply economic theory and economic thinking to real world events; (3) improve your ability to express yourself clearly and concisely both orally and in writing; and (4) enhance your ability to evaluate and acquire new information. Office Hours If you have questions about the material for this course, or on any related topic, I encourage you to see me, either during my regularly scheduled office hours, or by appointment. My office hours during the Fall semester will be: Tuesday and Thursday 11:00-12:00 Wednesday 9:30-10:30 I am also happy to answer questions via e-mail. Class Meetings and Reading Assignments The material covered in class and the assigned readings are intended to complement each other rather than to serve as substitutes for one another. You will be responsible for all the material presented in class and in the assigned readings. Completion of the readings and other out-of-class assignments is essential to your success in this class, and you should plan to spend approximately two hours outside of class for every hour in class. Class meetings will not be used to repeat the material presented in the assigned readings. Rather I will expand on some topics or offer alternative and competing views of the material. I expect that we will engage in discussion of the assigned readings as frequently as is practical. You should plan to read the material for each topic in advance of the lecture and come prepared to discuss it. You will be responsible for material in the readings whether or not it is explicitly discussed in class. Economics 530-Fall 1998 2 There is no single comprehensive text that addresses all of the subjects covered by this class. Instead, the assigned readings are drawn from a variety of sources. Copies of all of the assigned readings are available at the Anschutz Library Reserve Desk. To the extent that readings are available in electronic formats I have included links to them from the course web site. A number of books are available for purchase at the Kansas Union bookstore, and at other bookstores in town. These are: . Jeremy Atack and Peter Passell, A New Economic View of American Economic History, 2 nd edition . Frank Levy, The New Dollars and Dreams . Peter Temin, Lessons from the Great Depression Requirements and Grading for Econ 530 and Hist 628 Your grade in this class will be based on 11 homework assignments, a midterm and final, and your class participation. The relative weights of each component in your final grade will be: Homework Assignments 55% (5% each) Midterm Exam 15% Final Exam 18% Participation 12% Homework Assignments The due date of each homework assignment is shown on the lecture schedule. Each assignment will be handed out one week prior to its due date. The content of the assignments will vary, but most will be short-essays responding to one or more of the readings and lectures. Midterm and Final Examinations The dates of the midterm and final exam are shown on the lecture schedule and reading list. Please make a note of them now to avoid possible conflicts. If these dates are in conflict with any religious holidays that would prevent you from taking either exam, please let me know as soon as possible. Excused Absences If for some reason you are unable to complete one of your assignments or exams on the scheduled date, please contact me as soon as possible (preferably before the event). In general, if I deem the reason for your absence appropriate I will base your grade in the class on your other work during the semester. Class Discussions Throughout the semester we will be discussing the assigned readings in class, so it is important that you keep up with the readings. You will be graded on both the quantity and quality of your contributions to the discussion. Economics 530-Fall 1998 3 Students with Special Needs Any student in this course who has a disability that may prevent him/her from fully demonstrating his/her abilities should contact me as soon as possible so that we can discuss accommodations necessary to ensure full participation and facilitate the educational process. Economics 530-Fall 1998 4 Date HW Due Topics and Readings I. Introduction to the Course Aug.24 (1) Policies and Procedures Aug. 29 (2) Goals and Purposes of Economic History . Atack and Passell, Introduction II. An Overview of US Economic History Aug. 31 HW #1 (1) Measuring the Standard of Living . Clifford Cobb, Ted Halstead, and Jonathan Rowe, "If the GDP is Up, Why is America Down?" Atlantic Monthly (October 1995), pp. 59-78 Sept.5 (2) Historical Perspectives on the Standard of Living . Atack and Passell, Ch. 1 . J. Bradford DeLong, "Cornucopia: The Pace of Economic Growth in the Twentieth Century," NBER WP #7602 (March 2000) Sept. 7 HW #2 (3) The Sources of Economic Growth . Moses Abramovitz, "The Search for the Sources of Growth: Areas of Ignorance, Old and New," Journal of Economic History 53 (June 1993), 217-43 Sept. 12 (4) The Growth of Population . Atack and Passell, Ch. 8 III Technological Change as a Source of Economic Growth Sept. 14 (1) The Industrial Revolution in America . Atack and Passell, Chs. 5 and 7 Sept. 19 HW #3 (2) Transportation Revolutions before the Civil War . Atack and Passell, Ch. 6 Sept.21 (3) Railroads and Economic Growth . Atack and Passell, Ch. 16 Sept. 26 HW #4 (4) The Rise of Big Business . Atack and Passell, Ch. 17 Sept. 28 (5) American Technological Leadership . Richard R. Nelson and Gavin Wright, "The Rise and Fall of American Technological Leadership: The Postwar Era in Historical Perspective," Journal of Economic Literature 30 (Dec. 1992), pp. 1931-1964 IV The Economics of a Declining Sector-Agriculture Oct. 3 HW #5 (1) Agriculture in the North . Atack and Passell, ch. 10 Oct. 5 (2) Slavery and Southern Economic Development . Atack and Passell, Ch. 11 Economics 530-Fall 1998 5 Oct. 10 (3) Economic Analysis of Slavery . Atack and Passell, Ch. 12 Oct. 12 (4) Agriculture after the Civil War . Atack and Passell, Chs. 14-15 Economics 530-Fall 1998 6 Date HW Due Topics and Readings Oct. 17 ***Mid-Term Exam*** V Money and Financial Markets Oct. 19 (1) Banks and Money . Atack and Passell, Ch. 4 Oct. 24 (2) The Origins of the Modern Monetary System . Atack and Passell, Ch. 18 VI Macroeconomic Fluctuations and Macro Policy Oct. 26 HW #6 (1) Historical and Theoretical Perspectives on the Macroeconomy . Christina Romer, "Changes in Business Cycles: Evidence and Explanations," Journal of Economic Perspectives 13 (Spring 1999), 23-44 Oct. 31 (2) The Causes of the Great Depression . Peter Temin, Lessons from the Great Depression, Ch. 1 Nov. 2 HW #7 (3) The Great Depression . Peter Temin, Lessons from the Great Depression, Ch. 2 Nov. 7 (4) Ending the Great Depression . Peter Temin, Lessons from the Great Depression, Ch. 3 VII Economics of Race, Gender, and Nationality Nov. 9 HW #8 (1) Labor Markets in Historical Perspective . Atack and Passell, Ch. 19 Nov. 14 (2) Women's Changing Economic Role . Dora Costa, "From Mill Town to Board Room: The Rise of Women's Paid Labor," NBER WP #7608 (March 2000) Nov. 16 HW #9 (3) Immigration: Causes and Consequences . Susan B. Carter and Richard Sutch, "Historical Perspectives on the Economic Consequences of Immigration into the United States," in The Handbook of International Migration: The American Experience, Charles Hirschman, Philip Kasinitz and Josh DeWind, editors, ch. 17 Nov. 21 (4) Changes in Education and Training . Claudia Goldin and Lawrence F. Katz, "The Shaping of Higher Education: the Formative Years in the United States, 1890 to 1940," Journal of Economic Perspectives 13 (Winter 1999), 37-62 Economics 530-Fall 1998 7 Nov. 28 (5) Post-War Trends in Income Inequality . Frank Levy, The New Dollars and Dreams, Chs. 2-3 Nov. 30 HW #10 (6) Explaining the Distribution of Benefits . Frank Levy, The New Dollars and Dreams, Chs. 4-5 Economics 530-Fall 1998 8 Date HW Due Topics and Readings VIII Political Economy: The Changing Role of Government Dec. 5 (1) Long-Run Perspectives . Atack and Passell, Ch. 23 Dec. 7 HW #11 (2) The Political Economy of the Cold War . Robert Higgs, "The Cold War Economy: Opportunity Costs, Ideology, and the Politics of Crisis," Explorations in Economic History 31 (1994), 283-312 IX Conclusions Dec. 12 (1) The Big Picture of American Economic Growth . Peter Temin, "Free Land and Federalism: A Synoptic View of American Economic History, Journal of Interdisciplinary History 21 (Winter 1991), 371-89 Dec. 20 ***FINAL EXAM, 11:30 AM to 1 PM, in Class***