A Revolt against Globalization? How Political Economies Change

Transcription

1 Professor Peter A. Hall Center for European Studies, Phone: Kirkland Street, Rm Government 94rg Fall 2017 Tuesday 2 pm 4 pm A Revolt against Globalization? How Political Economies Change This is an advanced undergraduate seminar in comparative political economy about the relationship between economics and politics. The premise is that, by analyzing how governments have addressed an evolving set of economic and political problems in past decades, we can better understand the challenges facing the advanced democracies today and how to cope with them. The course construes economic challenges as political challenges and examines how changes in electoral politics and producer group politics interact with economic changes to yield new problems and solutions to them. Why are contemporary political economies beset by rising levels of income inequality? How have the roles and responsibilities of firms in contemporary economies changed? Does the surge of support for populist causes and candidates of the political right and left reflect a revolt against globalization or a cultural reaction to post-materialism? How have the management of the economy and the complexion of electoral politics changed since the 1950s? Are we currently witnessing a crisis of capitalism or of democracy? The course considers these questions via an examination of how the developed political economies and their electoral politics have changed through the broadly Keynesian era of the 1950s and 1960s, the turbulent 1970s, the neoliberal era of the 1980s and 1990s toward knowledge economies today. We will consider explanations for parallel movements over time but also how best to characterize variations across space in types of political economies that affect how well they cope with a succession of challenges. In the later weeks of the course, some emphasis will be given to analyzing the sources of support for populist parties and the dilemmas their rise poses for capitalism and democracy. At its base, this is a course about how social and political change takes place, designed to help us better understand the changes taking place in the contemporary world. There is some emphasis on European cases as well as on the United States. Note: Admission to this course is through a lottery run by the undergraduate program office of the Government Department. The deadline to enter the lottery is 6 pm on August 31 st.

2 Requirements: Class participation (30%). Since this is a seminar, students are expected to attend all class meetings, to come prepared to discuss the readings, and to participate actively in discussion. This grade will be based on the quality of your preparation and participation. Three short response papers (30%) of 2-3 double-spaced pages in 12 point font which offer a critical review of the week s reading or thoughtfully take up some issues the reading raises that would be appropriate for discussion in class. To be ed to participants in the course by midnight the day before the class meets. Near the beginning of the semester, students will choose the weeks for which they write response papers. Research paper (40%) of pages in length (double-spaced in 12 point font) including notes and bibliography due on Friday December 8 th. The topic for this paper should be agreed with the instructor by the end of September. It can deal with any issue related to the course and should offer answers to a set of core questions based on secondary reading in at least 20 sources or on original research. Students will make a 10 minute presentation of preliminary results for the paper on Nov 21 st or Nov 28 th followed by discussion, and part of the grade for the paper will depend on the quality of this presentation. Collaboration Policy Students should feel free to discuss the issues raised by their reading or writing for the course with other students. However, all written work for it should be entirely your own and no one other than a member of the teaching staff or a student's official academic or writing advisor should be allowed to see the papers that you submit, the notes made for it, or any previous drafts of the paper. Any material used from primary or secondary sources should be appropriately footnoted and direct quotations identified as such. Readings In most cases, the required readings will be available on the course website. In a few cases where their length makes that impractical, the books assigned will be available on reserve at Lamont library and for purchase at the Coop. 2

3 Topics and Readings 1. (Sept 7) Introduction An introduction to the issues covered by the course and discussion of a strange but classic work about the relationship between politics and economics. In Polanyi s view, what should the role of the state in the economy be? What is the double movement? What role do ideas play in the management of the economy? What political effects can be expected from defense of the gold standard in the name of globalization? Karl Polanyi, The Great Transformation: The Political and Economic Origins of our Time. Boston: Beacon Press 1944, Chapters 2, 6, 9, 10, 11, 19 and (Sept 12 th ) The Roles of States and Firms in the Political Economy How should we characterize cross-national variations in political economies? Compare how Shonfield and Hall describe those differences with the approach of Hall and Soskice: how do their approaches vary? What are the most important elements of the varieties of capitalism approach? According to Estevez-Abe et al., what social and economic purposes do welfare states serve? Compare the explanations of Shonfield and Eichengreen for rapid economic growth in the 1950s and 1960s: which do you find more convincing? Andrew Shonfield, Modern Capitalism. Oxford: Oxford University Press pp Peter A Hall, Governing the Economy. Oxford: Oxford University Press, Chs. 3 and 6. Peter A. Hall, and David Soskice An Introduction to Varieties of Capitalism. In Hall and Soskice (eds), Varieties of Capitalism. Oxford: Oxford University Press, pp Margarita Estevez-Abe, Torben Iversen and David Soskice Social Protection and the Formation of Skills: A Reinterpretation of the Welfare State, in Hall and Soskice, eds. Varieties of Capitalism. Oxford: Oxford University Press 2001, pp Barry Eichengreen, Institutions and Economic Growth: Europe after World War II. In Nicholas Crafts and Gianni Toniolo, eds Economic Growth in Europe since Cambridge: Cambridge University Press 1996, pp (Sept 19 th ) The Politics of the Keynesian Welfare State How might one explain the expansion of social policy associated with the rise of the welfare state? Which ones do you find most convincing? What do welfare states do and what are the three principal types of welfare states? Why do some countries get a particular kind of welfare state? To what extent did electoral politics vs producer-group politics underpin the formulae for post-war prosperity? Gøsta Esping Andersen The Three Political Economies of the Welfare State, Canadian Review of Sociology and Anthropology, 26:

4 Philip Manow Electoral Rules, class coalitions and welfare state regimes or how to explain Esping-Andersen with Stein Rokkan, Socio-Economic Review 7(1), Walter Korpi Power, Politics, and State Autonomy in the Development of Social Citizenship: Social Rights during Sickness in Eighteen OECD Countries since 1930, American Sociological Review 54(3): David Cameron The Expansion of the Public Economy: A Comparative Analysis, American Political Science Review 72(4): Adam Przeworski and Michael Wallerstein 1982 The Structure of Class Conflict in Democratic Capitalist Societies, American Political Science Review 76(2): (Sept 26) The Crisis of the 1970s: What Went Wrong? How is the collapse of post-war prosperity into rising inflation and economic stagnation during the 1970s to be explained? To what extent were the sources of these problems economic or political? What kinds of social or political factors contributed to them on domestic and international planes? Were the crises of the 1970s an inevitable outgrowth of economic and political conditions in the 1950s/60s? Charles S. Maier Inflation and Stagnation as Politics and History. In Leon N. Lindberg and Charles S. Maier, eds. The Politics of Inflation and Economic Stagnations. Washington: Brookings. Read only pp for a basic narrative of the crisis. John H. Goldthorpe The Current Inflation: Towards a Sociological Account. In Fred Hirsch and John H. Goldthorpe, eds. The Political Economy of Inflation. Cambridge: Harvard University Press, pp Michel Crozier Western Europe. In Michel Crozier, Samuel P. Huntington and Joji Watanuki, The Crisis of Democracy. New York: New York University Press, pp Ronald Inglehart The Silent Revolution in Europe: Intergenerational Change in Post- Industrial Societies, American Political Science Review 65(4): Robert O. Keohane The International Politics of Inflation. In Leon N. Lindberg and Charles S. Maier, eds. The Politics of Inflation and Economic Stagnations. Washington: Brookings, pp (Oct 3) The Move to the Market of the 1980s and 1990s How did the roles of the state and markets change in the 1980s and 1990s? What forces drove those changes, especially in liberal market economies like that of the U.S.? To what extent were these developments driven by firms, market dynamics and public policies? What should the responsibilities of private firms be under democratic capitalism? 4

5 Peter A. Hall The Changing Role of the State in Liberal Market Economies. In S. Leibfried et al. eds. The Oxford Handbook of Transformations of the State. Oxford: Oxford University Press. pp William Lazonick & Mary O'Sullivan Maximizing shareholder value: a new ideology for corporate governance, Economy and Society, 29:1, Greta Krippner The Political Economy of Financial Exuberance. In Michael Lunsbury and Paul Hirsch, eds. Markets on Trial: The Economic Sociology of the U.S. Financial Crisis. Emerald Publications, pp Ralph Gomory and Richard Sylla The American Corporation, Daedalus 142(2): (Oct 10) The Politics of Inequality in the Neoliberal Era What explains increasing income inequality since the 1980s? Is this primarily the result of economic developments or does politics also drive income inequality? What economic factors and what political factors might matter most? How and why did the politics associated with the welfare state change? What best explains those changes? David Autor The Polarization of Job Opportunities in the US Labor Market. The Hamilton Project. Center for American Progress. Torben Iversen and Anne Wren Equality, Employment and Budgetary Restraint: the Trilemma of the Service Economy, World Politics 50: 4: Jacob Hacker and Paul Pierson Winner-Take All Politics: Public Policy, Political Organization, and the Precipitous Rise of Top Incomes in the United States, Politics and Society 38(2): Jane Gingrich and Silja Häusermann The Decline of the Working-Class Vote, the Reconfiguration of the Welfare Support Coalition and Consequences for the Welfare State, Journal of European Social Policy 25 (1): (Oct 17) The Economic Challenges of the Knowledge Economy What are the principal challenges confronting the developed politics economies today? Does the new knowledge economy offer prosperity or eliminate jobs? What economic developments might have given rise to secular stagnation and what can be done about it? What is politically feasible? How might the spatial effects of economic development based on technological change have political consequences? Brynjolfsson and Andrew McAfee Thriving in the Automated Economy, The Futurist (March/April):

6 Robert J. Gordon Is US Economic Growth Over? Faltering Innovation Confronts the Six Headwinds. NBER Working Paper Lawrence H. Summers The Age of Secular Stagnation: What It Is and What to Do about It, Foreign Affairs 95(2): 2-9. Herman Schwartz Wealth and Secular Stagnation: The Role of Industrial Organization and Intellectual Property Rights, Russell Sage Journal 2(6): David Autor Polanyi's Paradox and the Shape of Employment Growth. NBER Working Paper No Enrico Moretti, Where the Good Jobs Are and Why, Wall Street Journal (17 September 2013). Richard Florida Confronting the New Urban Crisis access at 8. (Oct 24) The Political Challenges of the Knowledge Economy Does the changing nature of work have implications for people s attitudes and voting behavior? Is that really where political attitudes come from? Where do you agree and disagree with the diagnosis Beramendi et al. give of the challenges facing governments and the ways in which political coalitions form to cope with them? In what ways are the diagnoses of Iversen and Soskice and Gilens different? Herbert Kitschelt and Philipp Rehm Occupations as a Site of Political Preference Formation, Comparative Political Studies 47(2): Pablo Beramendi et al The Politics of Advanced Capitalism. NY: Cambridge University Press. Introduction. Torben Iversen and David Soskice Democratic Limits to Redistribution: Inclusionary versus Exclusionary Coalitions in the Knowledge Economy, World Politics 67: 2 (April), Martin Gilens and Benjamin I. Page Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens, Perspectives on Politics 12(3): (Oct 31) Populism: What is it and where does it come from? What distinguishes populist parties from other kinds of political parties? Are they an indication of the revival of democracy or a threat to it? Is populism a revolt against globalization or a cultural revolt? How might we know? Are right and left forms of populism similar across nations or is the US different? Jan-Werner Müller, What is Populism? Philadelphia: University of Pennsylvania Press. Chs. 1, 2 and Conclusion. Arlie Hochschild Strangers in their Own Land. New York: New Press, Ch 9. 6

7 Sean Mcelwee and Jason McDaniel. Economic Anxiety Didn t Make People Vote Trump, Racism Did, The Nation (8 May 2017) Ronald Inglehart and Pippa Norris Trump and the Populist Authoritarian Parties: The Silent Revolution in Reverse, Perspectives on Politics 15(2): Dani Rodrik Populism and the Economics of Globalization. Ms. Luis Guiso et al Demand and Supply of Populism. Ms. Daniel Gros Is Globalization Really Fueling Populism? Project Syndicate (May 6, 2016) (Nov 7) The Rise of Populism: Why Now? Why Left vs Right? Why has there been a recent surge in support for populist parties? To what extent do changes in the supply of populism provide an answer to that question? What developments might have changed that supply? How does social context condition support for populism? What explains why some peole vote for parties on the populist right and others for parties on the radical left? Larry Bartels, The Wave of Right-Wing Populist Sentiment is a Myth, Washington Post (21 June 2017). Zoe Lefkofridi and Elie Michel The Electoral Politics of Solidarity: The Welfare Agendas of Radical Right Parties. In Keith Banting and Will Kymlicka, eds. The Strains of Commitment. Oxford: Oxford University Press, pp Matthjs Rooduijn. and Brian Burgoon The Paradox of Wellbeing: Do Unfavorable Socioeconomic and Sociocultural Contexts Deepen or Dampen Radical Left and Right Voting Among the Less Well-Off? Comparative Political Studies. Noam Gidron and Peter A. Hall Populism as a Problem of Social Integration. Paper presented at the Annual Meeting of the American Political Science Association, San Francisco. 11. (Nov 14) A Crisis of Capitalism or of Democracy? What is to be Done? Have contemporary developments created a crisis of capitalism? A crisis of democracy? If so, what are their main causes and contours? Is there any reason to think one or the other will not survive the crisis? Have Streeck and Mair correctly identified the problems? Are they too pessimistic? Do you agree with Rosanvallon, Allen, Lilla and Goodhart about how nations should respond to the challenges of populism? Wolfgang Streeck How Will Capitalism End? New Left Review 87:

8 Peter Mair Ruling the Void? The Hollowing of Western Democracy, New Left Review 42: Pierre Rosanvallon How to Create a Society of Equals, Foreign Affairs 95, 1 Danielle Allen Equality and American Democracy: Why Politics Trumps Economics, Foreign Affairs 95, 1 Mark Lilla The End of Identity Liberalism, New York Times (16 Nov 2016). David Goodhart The Road to Somewhere London: Oxford: Oxford University Press, Chs. 1,2 and (Nov 21) Presentation of Student Projects 13. (Nov 28) Presentation of Student Projects 8