ECON BC3041 Theoretical Foundations of Political Economy

Professor Carl Wennerlind, Fall 2002

1. Description:
"Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects: to enrich both the people and the sovereign."
Adam Smith

"The Philosophers have only interpreted the world, in various ways; the point, however, is to change it." Karl Marx

"I think that Capitalism can probably be made more efficient for attaining economic ends than any alternative system yet in sight, but that in itself it is in many ways extremely objectionable." John-Maynard Keynes

A reading of Adam Smith, Karl Marx, and John-Maynard Keynes reveals that there are both important similarities and differences between the theoretical perspectives that form the cannon of economic thought. These thinkers all posit analytical systems designed to organize our understanding of capitalism. However, given that they wrote during different moments of the evolution of capitalism and they disagree fundamentally in their normative assessment of this social form, their analytical systems diverge in important ways. The primary aim of this course it to examine the economic theories and discourses of three of the most seminal economic thinkers: Smith, Marx, and Keynes. We will pursue this inquiry by undertaking an intensive reading of primary sources, as well as some secondary material designed to illuminate the economic and social conditions that these writers were experiencing and to which they were reacting.

Our focus will be fourfold:
(1) To study the dialectical relationship between economic theory and society - viewing theory as both a representation of reality and as a set of strategies designed to change reality.
(2) To understand the political and ideological assumptions that form the underpinnings of these theoretical structures.
(3) To analyze the change and continuity between these three thinkers.
(4) To examine how we can use these theories to illuminate contemporary socio-economic conditions.

Required texts (available at Labyrinth Bookstore):
Adam Smith The Wealth of Nations
Karl Marx Capital, Vol. 1
J-M Keynes The General Theory of Employment, Interest, and Money.

Secondary readings will be made available in a course pack distributed in class.

2. Requirements:
Students are required to write three short papers (5 pages maximum), each of which contributes 25% to the final grade. There will also be a final examination, worth 20% of the final grade. The remaining part of the semester grade is determined by class participation

3. Prerequisites:
An introductory course in economics.