July 18, 2016 History 417 Capitalism, Socialism, and Democracy Fall 2016 Louis Galambos Office ...

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July 18, 2016 History 417 Capitalism, Socialism, and Democracy Fall 2016 Louis Galambos Office hours, Gilman 320, Thursday, 10:01 AM to 11:01 AM For other times, contact me at [email protected]

In this course each of the students will develop their own answers to the following questions: 1) Does American economic and business history in the second and third industrial revolutions provide an answer to Joseph A. Schumpeter’s question, “Can capitalism survive?” 2) Has globalization since the end of World War II made it more or less likely that a socialist system can be economically successful? 3) Is China or the United States likely to have the most successful economy by the year 2050? What role, if any, will democracy play in that outcome? To help you develop your answers to these questions, you will submit weekly “reaction” papers: one page maximum, a rough, off-the-top-of-your-head reaction or response to the reading for that week. I would like to receive these (as signed Word attachments) on Monday each week by 12 Noon. Because we start this course on Thursday, you will combine in one reaction paper by next Monday a response to the reading for this week and for next week. Get busy reading! We start fast and finish early. Each week, I will lecture for the first part of the class; we will take a brief break; then we will have a discussion of the reading material and the question posed for your next essay. To assist you in clarifying your ideas about the questions posed above, you will write three superb essays, each of which will focus on one of those questions. Your well-written, carefully documented, eight- to nine-page (double spaced) essays will all be turned in on time. I repeat: ON TIME. I am trying to get you

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ready for the world beyond Johns Hopkins. I will help you achieve that goal by providing some editorial assistance: if you will bring a draft of your paper to Gilman Hall 320 on the Wednesday before the papers are due, I will read and mark the draft. You will be able to pick up your draft later that day. I will be in my office from 9 AM, until I have finished the last draft. When I finish the last draft, I will turn off the light and go home to walk Bailey the Dog. **The days for marking drafts are September 28, November 2, & December 7 (Pearl Harbor Day!). ***Your papers will be due in class on September 29, November 3, and December 8. The only book I am asking you to buy is Joseph A. Schumpeter, Capitalism, Socialism, and Democracy. All of the other readings will be on the Electronic Library. There is, I believe, a copy of Schumpeter’s book on the www. Assignments Week 1, Thursday, Sept 1. Joseph A. Schumpeter, Capitalism, Socialism, and Democracy (hereafter CS&D), preface, ix-xiv, and pages 3-58, “The Marxian Doctrine.” Your first reaction paper will cover this reading and the reading for next week. Hustle! Week 2, Thursday, Sept 8. Schumpeter, CS&D, pp. 61-163, “Can Capitalism Survive?” Week 3, Thursday, Sept 15. The Second Industrial Revolution: Alfred D. Chandler, Jr., Strategy and Structure: Chapters in the History of the Industrial Enterprise, 1-17, 52-113. Naomi R. Lamoreaux, Margaret Levenstein, and Kenneth L. Sokoloff, “Financing Invention during the Second Industrial Revolution: Cleveland, Ohio, 1870-1920,” in Naomi R. Lamoreaux and Kenneth L. Sololoff, Financing Innovation in the United States, 1870 to the Present, pp. 39-61, 74-75. Week 4, Thursday, Sept 22. The Third Industrial Revolution: David C. Mowery, “The Computer Software Industry,” in David C. Mowery and Richard R. Nelson, eds., Sources of Industrial

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Leadership: Studies of Seven Industries, pp. 133-65. Walter Isaacson, The Innovators, pp. 312-81. Walter Isaacson, Steve Jobs, “Legacy,” pp. 560-71. Week 5, Wednesday, Sept 28. *** I will mark drafts of your first paper.*** ***Thursday, Sept 29, your first paper is due at class.*** Your subject is “Does American economic and business history in the second and third industrial revolutions provide an answer to Joseph A. Schumpeter’s question, “Can capitalism compete?” Week 6, Thursday, Oct 6. Galambos will return your first essays. Scientific socialism: a global movement in various forms: Schumpeter, CS&D, pages 167-231, “Can Socialism Work?” And Karl Marx, Capital, volume 1. There are many editions, so I have indicated the chapter and sections of the chapter: Chapter 25, “The General Law of Capitalist Accumulation,” Section 1 (pp. 612-24 in my edition) on “The Increased Demand for Labour-Power that Accompanies Accumulation….” and Section 3 (pp. 628-40) on “Progressive Production of a Relative Surplus-Population….”

Week 7, Thursday, Oct 13. Schumpeter, CS&D, pages 312-19, “The Situation That Marx Faced,” and pages 352-406, “From the First to the Second World War,” and “The Consequences of the Second World War.” Barry Eichengreen, The European Economy Since 1945: Coordinated Capitalism and Beyond, pp. 294-334 ***Thursday Oct 20 No Class*** Week 9, Thursday, Oct 27. The Swedish Experience: Assar Lindbeck, “The Swedish Experiment,” Journal of Economic Literature, volume 35, no. 3 (September 1997), 1273-1319. World Bank Group, “Doing Business 2015, Going Beyond Efficiency, Economy Profile 2015: Sweden.” Week 10, Wednesday Nov 2 . NOTE THE DAY. ***I will mark drafts of your second essay on WEDNESDAY*** ***Thursday, Nov 3, second essay due at class.***

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Your subject is: “Has globalization since the end of World War II made it more or less likely that a socialist system can be economically successful?”

Week 11, Thursday, Nov 10. Galambos will return your second essays. Schumpeter, CS&D, “Socialism and Democracy,” pages 235-49, 296-302, and “The Consequences of the Second World War,” pp. 376-406. Daron Acemoglu and James A. Robinson, Why Nations Fail: The Origins of Power, Prosperity, and Poverty, Chapter 3, pp. 70-95. The Chinese Transition: Kellee S. Tsai and Barry Naughton, eds., State Capitalism, Institutional Adaptation, and the Chinese Miracle, pp. 1-21. Week 12, Thursday Nov 17. Yi Wen, “The Making of an Economic Superpower—Unlocking China’s Secret of Rapid Industrialization,” Working Paper 2015-006B” (June 2015), available at http://research.stlouisfed.org/wp/2015/2015-006.pdf. Read pages 1-99, 154-71. Monday, Nov 21-Sunday, Nov 27, Thanksgiving Vacation. Recharge! Week 13, Thursday Dec 1. Francis Fukuyama, The End of History and the Last Man, Part 1, pp. 13-38. Capitalism and Democracy: Peter A. Hall & David Soskice, Varieties of Capitalism, Chapter 1, Introduction…,” pp. 1-68. World Economic Forum, 2015-2016, Competitiveness Rankings, and the Country Reports on China and the United States. Available at http://reports.weforum.org/global-competitiveness-report-20152016/competitiveness-rankings/. Martin Jacques, “When China Rules the World,” p. 363. Week 14, Wednesday, Dec 7. *** I will mark drafts of your final essay.*** ***Thursday, Dec 8, your final essay is due at class.*** Your subject is: “Is China or the United States likely to have the most successful economy by the year 2050? What role, if any, will democracy play in that outcome? There is no exam. You are finished with History 417! Have a spirited exam period and a wonderful vacation!!