University of Manitoba Department of Economics. ECON 4050 HISTORY OF ECONOMIC THOUGHT I Fall Term

University of Manitoba Department of Economics ECON 4050 HISTORY OF ECONOMIC THOUGHT I Fall Term 2016-2017 Section A01 CRN#12956 Slot 25 Wednesdays 2:30pm 5:15pm Room 503 Tier Professor: F. Baragar COURSE OUTLINE Office: 506 Fletcher Argue Building Tel: (204) 474-9005 Email: Fletcher.Baragar@umanitoba.ca Office Hours: Term1 Monday 12:30pm 1:20pm Wednesday 1:30pm - 2:20pm or by appointment Course Requirements: Seminar Presentation #1 10% Seminar Presentation #2 10% Seminar Participation 8% Essay (Due: Wednesday December 7, 2016) 36% Final Exam (December 2016) 36% The exam will be scheduled for the University of Manitoba's examination period (December 12-22, 2016). The exam will be 3 hours in duration. Students seminar presentations should be approximately 20 minutes in duration. The presenter should be prepared to participate in discussion and answer questions about the designated topic and readings pertaining to the presentation. Essays will be assigned letter grades which will have the following numerical equivalent: A+ = 36. A=32. B+=30. B=27. C+=24. C=22. D=19. F can span the range from 0 to 17. On each exam, students will be required to answer 3 essay-type questions. Each answer will be assigned a numerical mark out of 18. The overall grade for the exam will be the sum of the highest 2 of the 3 questions answered, subject to the condition that the lowest of the 3 marks is a 10 or better. If the lowest mark is below 10, then the overall mark for the exam will be the sum

of the marks for all 3 questions, multiplied by 0.67. E.g., marks of 16/18, 14/18, 12/18. Overall mark for the exam is: 16 + 14 = 30 out of 36. E.g., marks of 16/18, 14/18, 9/18. Overall mark for the exam is: (16 + 14 + 9) 0.67 = 26 out of 36 The final grade conversion scale is as follows: A+ 92-100 C+ 64-70.5 A 85-91.5 C 57-63.5 B+ 78-84.5 D 50-56.5 B 71-77.5 F less than 50 Students will not be permitted to write makeup exams or hand in essays late, except for documented medical or compassionate reasons. Students appealing any term work whether it be an informal or formal appeal must appeal their term work within 10 days of receiving their mark. Term work will be returned to students after the work has been graded and the grades recorded. Term work that is unclaimed will be held by the instructor for four months following the end of the term (Note: The final day of the University's Final Examination period is considered the last day of the term). After that date, unclaimed term work will become the property of the Faculty of Arts and will be subject to confidential destruction. Note that November 18, 2016 is the final date for voluntary withdrawal without academic penalty for full courses. Minimal evaluative feedback will be provided before this final withdrawal date: i.e., only the marks for students first seminar presentation will be available prior to the VW date. Students should acquaint themselves with the university s policy on plagiarism, cheating and examination impersonation ('Personation at Examinations" (Section5.2.9) and "Plagiarism and Cheating" (Section 8.1)) and duplicate submission by reading documentation provided at the Arts Student Resources web site at <http://www.umanitoba.ca/faculties/arts/student/index.html>. Ignorance of the regulations and policies regarding academic integrity is not a valid excuse for violating them. The Faculty of Arts also reserves the right to submit student work that is suspected of being plagiarized to Internet sites designed to detect plagiarism. Please note that all grades are subjected to departmental review and approval. Recommended Textbooks: Backhouse, Roger, The Ordinary Business of Life: A History of Economics from the Ancient World to the Twenty-First Century. Princeton and Oxford, Princeton University Press, 2002. Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations 2 Volumes. Edited by R. H. Campbell and A. S. Skinner. Indianapolis, IN: The Liberty Fund, 1981.

Marx, Karl, Capital: A Critique of Political Economy Volume 1. New York: International Publishers, 1967. Supplementary Text: - Ricardo, David, On the Principles of Political Economy and Taxation. Ed. by Piero Sraffa with the collaboration of M. H. Dobb. Vol.I of the Works and Correspondence of David Ricardo. Cambridge: Cambridge University Press, 1951. Additional Sources: An excellent website which offers an extensive range of original writings is provided by the McMaster University Archive for the History of Economic Thought. The web address is <http://socserv2.socsci.mcmaster.ca/~econ/ugcm/ugcm/3ll3/>. Seminars and Readings: First Term September 14 September 21 1. Introduction 2A. Ancient and Medieval Economic Thought Seminar presentation #1 - Aristotle, The Politics, Bk.I. Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections From Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp.1-22. - Backhouse, Chapters 1 and 2. Suggested readings: - Plato, The Republic. Translated by Benjamin Jowett. New York, Vintage Books, n.d.. Bk.II, sections 367-75. - Aristotle, The Politics, Bk.I and The Nicomachean Ethics, Bk.V. Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections From Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp.1-29. - Aquinas, St. Thomas, Summa Theologica, Questions LXXVII and LXXVIII. Reprinted in Arthur Eli Monroe, ed. Early Economic Thought: Selections From Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp.53-77. 2B. Mercantilism Seminar presentation #2 - Mun, Thomas, England s Treasure by Forraign Trade. Ch. 2,3,4,and 10. Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections From Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp. 171-87.

-Backhouse, Chapters 3 and 4. Suggested readings: - Mun, Thomas, England s Treasure by Forraign Trade. Ch. 2,3,4,and 10. Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections From Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp. 171-87. - Bodin, Jean, Reply to the Paradoxes of Malestroit Concerning the Dearness of all Things and the Means of Remedying It. Excerpts reprinted in K. William Kapp and Lore L. Kapp, eds, History of Economic Thought: A Book of Readings. 2 nd ed. New York: Barnes and Noble, 1963. Pp.34-47. - von Hornick, Phillip W., Austria Over All if Only She Will. Excerpts reprinted in K. William Kapp and Lore L. Kapp, eds. History of Economic Thought: A Book of Readings. 2 nd ed. New York: Barnes and Noble, 1963. Pp.47-62. September 28 3. The Eighteenth Century and Harbingers of Adam Smith Seminar presentation #3 - Hume, David, Of the Balance of Trade, in Eugene Rotwein, ed. David Hume: Writings on Economics. Madison: University of Wisconsin Press, 1970. Pp.60-77. Also printed in David Hume, Essays and Treatises on Several Subjects.London, 1758, available online from University of Manitoba libraries. Seminar presentation #4 - Quesnay, François, Tableau Économique. Excerpt Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections from Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp. 341-8. - Backhouse, Ch. 5 and Ch.6, pp.110-121. - Mandeville, Bernard, The Grumbling Hive: or, Knaves Turned Honest, in The Fable of the Bees, Part 1. Online access available from University of Manitoba library services UML. - Hume, David, Of Money, and Of Interest, in Eugene Rotwein, ed. David Hume: Writings on Economics. Madison: University of Wisconsin Press, 1970. Pp. 33-59. Hume's economic essays are also in David Hume, Essays and Treatises on Several Subjects. London, 1758, which is available online from University of Manitoba libraries. Suggested readings: - Hume, David, Of Commerce, Of the Balance of Trade, and Of the Jealousy of Trade, in Eugene Rotwein, ed. David Hume: Writings on Economics. Madison: University of Wisconsin Press, 1970. Pp. 3-18, 60-82. - Quesnay, François, Tableau Économique. Excerpt Reprinted in Arthur Eli Monroe, ed., Early Economic Thought: Selections from Economic Literature Prior to Adam Smith. Cambridge: Harvard University Press, 1945. Pp. 341-8.

October 5 4. Adam Smith I: Value Theory Seminar presentation #5 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book I: Chapter 5. Seminar presentation #6 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book I: Chapter 7. - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book I: Chapters 1 7. October 12 5. Adam Smith II: Growth and Income Distribution Seminar presentation #7 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book I: Chapter 8. Seminar presentation #8 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book I: Chapter 9. Seminar presentation #9 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book II: Chapter 3. Seminar presentation #10 - Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. Book II: Chapter 5. - Smith, Adam, The Wealth of Nations. Book I: Chapters 8, 9, and10. Chapter 11, Introduction and Conclusion. Book II: Introduction, Chapters 1, 3, 4, and 5. October 19 6A. Adam Smith III: Political Economy and Ideology - Smith, Adam, The Wealth of Nations. Book III: Chapters 1 and 3. Book IV: Introduction, Chapter 1, Chapter 2, pp.452-459, Chapter 3, Part I, pp. 473-79 and Part II, Chapters 8 and 9. Book V: Chapter 1, Part III, Article 2d, pp.780-788. 6B. T.R. Malthus: Population and Scarcity

Seminar presentation #11 - Malthus, Thomas Robert, Population: The First Essay. London: Macmillan, and New York: St. Martin s Press, 1966. Chapters 5 and 6. Seminar presentation #12 - Malthus, Thomas Robert, Population: The First Essay. London: Macmillan, and New York: St. Martin s Press, 1966. Chapters 9 and 10. Seminar presentation #13 - Malthus, Thomas Robert, Population: The First Essay. London: Macmillan, and New York: St. Martin s Press, 1966. Chapters 16 and 17. - Malthus, Thomas Robert, Population: The First Essay. London: Macmillan, and New York: St. Martin s Press, 1966. Chapters 1-5, 9, 10, 16, and 17. October 26 7. David Ricardo I: The Theory of Value and Distribution Seminar presentation #14 - Ricardo, David, On the Principles of Political Economy and Taxation. Ed. by Piero Sraffa with the collaboration of M. H. Dobb. Vol.I of the Works and Correspondence of David Ricardo. Cambridge: Cambridge University Press, 1951. Chapter 5. Seminar presentation #15 - Ricardo, David, On the Principles of Political Economy and Taxation. Ed. by Piero Sraffa with the collaboration of M. H. Dobb. Vol.I of the Works and Correspondence of David Ricardo. Cambridge: Cambridge University Press, 1951. Chapter 6. - Ricardo, David, On the Principles of Political Economy and Taxation. Ed. by Piero Sraffa with the collaboration of M. H. Dobb. Vol.I of the Works and Correspondence of David Ricardo. Cambridge: Cambridge University Press, 1951. Chapters 1, 2, 4, 5, 6 and 20. November 2 8. Malthus and Ricardo: Accumulation and Gluts Seminar presentation #16 - Ricardo, David, On the Principles of Political Economy and Taxation. Ed. by Piero Sraffa with the collaboration of M. H. Dobb. Vol.I of the Works and Correspondence of David Ricardo. Cambridge: Cambridge University Press, 1951. Chapter 31. Seminar presentation #17

- Ricardo, David. Correspondence: Letters 378, 379, 388, 392, 395, 402, 404. - Ricardo, David, On the Principles of Political Economy and Taxation. Chapters 21, 30 and 31. - Ricardo, David. Correspondence: Selected Letters. November 9 9. Political Economy after Ricardo Seminar presentation #18 - Senior, Nassau, excerpts from An Outline of the Science of Political Economy (1836). Rerprinted in Steven G. Medema and Warren J. Samuels, eds., History of Economic Thought: A Reader. London and New York: Routledge, 2003. Pp. 319-332. Seminar presentation #19 - Mill, John Stuart, Principles of Political Economy with Some of their Applications to Social Philosophy. Book IV, Chapters 4,5 and 6. Seminar presentation #20 - Mill, John Stuart, Principles of Political Economy with Some of their Applications to Social Philosophy. Book IV, Chapter 7. - Dobb, Maurice, Theories of Value and Distribution since Adam Smith: Ideology and Economic Theory. Cambridge: Cambridge University Press, 1973. Chapters 4 and 5. - Backhouse, Ch.7, pp.141-156. Suggested readings: - Landreth, Harry and David C. Colander, History of Economic Thought, 4 th edition. Boston and Toronto: Houghton Mifflin Company, 2002. Ch. 6. November 16 10. Karl Marx I: Introduction and Value Theory Seminar presentation #21 - Marx, Karl, Capital: A Critique of Political Economy. Vol. I. New York: International Publishers, 1967. Chapter 1, section 4, "The Fetishism of Commodities and the Secret thereof". Seminar presentation #22 - Marx, Karl, Capital: A Critique of Political Economy. Vol. I. New York: International Publishers, 1967. Ch.6 Seminar presentation #23 - Marx, Karl, Capital: A Critique of Political Economy. Vol. I. New York: International Publishers, 1967. Ch.7.

- Marx, Karl, Capital: A Critique of Political Economy. Vol. I. New York: International Publishers, 1967. Preface to the first German edition, Afterward to the second German edition, Chapter 1, sec.1 and 2, sec.3, pp.54-9, sec.4. Chapters 2, 4, 6 and 7. November 23 11. Karl Marx II: Exploitation and Accumulation Seminar presentation #24 - Marx, Karl, Capital. Vol.I, Ch. 15, sections 1 and 2. Seminar presentation #25 - Marx, Karl, Capital. Vol.I, Ch. 23 and Ch.24, section 1. Seminar presentation #26 - Marx, Karl, Capital. Vol.I, Ch. 25, sections 3 and 4. - Marx, Karl, Capital. Vol.I, Chapter 9, sec. 1, Chapter 10, sec.1, Chapters 11, 12, 13, 16, 25, sec.1-4. Chapters 26, 31 and 32. November 30 12. Karl Marx III: Prices, Profits and Falling Profit Rates Seminar presentation #27 Marx, Karl, Capital. Vol.III, Ch. 13. Seminar presentation #28 Marx, Karl, Capital. Vol.III, Ch.15. - Marx, Karl, Capital. Vol.III, Chapters 1, 2, 8, 9, 13, 14, and 15. December 7 13. Summary and Review

Essay Topics The essays topics embrace selected issues and aspects of economic thought before 1870. As part of their research for the essay, students are expected to make use of selected primary sources. Some primary sources especially relevant for the respective essay topics are listed on the list below. 1. The significance of Hobbes and Locke for the development of economic thought in the 17 th and 18 th centuries. - Hobbes, Leviathan - Locke, Second Treatise of Government, Ch.V. - Marx, Karl, and Frederick Engels, "Utilitarianism" from The German Ideology, reprinted in C.J. Arthur, ed., The German Ideology. New York: International Publishers, 1970. Pp. 109-114. 2. Smith, Cantillon, Paley, and Malthus on Population -Smith, Wealth of Nations, Bk.I Ch.VIII. -Cantillon, Essai sur la Nature du Commerce en Général, Part I, Ch. XV. -Paley, Moral and Political Philosophy, Part VI, Ch.XI. -Malthus, Essay (1798), Ch. 1-VIII. 3. Oresme, Galiani, Cantillon, Hume and Smith on Money -Oresme, Traictie de la Premiere Invention des Monnoies, in Monroe, ed., Early Economic Thought, Ch.IV. -Galiani, Della Moneta, in Monroe, ed. Early Economic Thought, Ch.XII -Cantillon, Essai sur la Nature du Commerce en Général, Part II.. -Hume, On Money. In E. Rotwein ed. David Hume Writings on Economics. Pp.33-46. -Smith, Wealth of Nations, Bk.I, Ch.IV. 4. Smith, Ricardo, Wakefield, J.S. Mill and Marx on Colonies -Smith, Wealth of Nations, Bk.IV, Ch VII. -Ricardo, Principles of Political Economy, Ch.25. -Wakefield, A Letter From Sydney, -Mill, Principles of Political Economy, Book V, Ch.XI, par.14. -Marx, Capital, Vol.I, Ch.33. 5. Utilitariansim and Economics: From Bentham to J.S. Mill - Bentham, An Introduction to the Principles of Morals and Legislation - Bastiat, Economic Harmonies - Mill, J.S., Utilitarianism - Marx, Karl, and Frederick Engels, "Utilitarianism" from The German Ideology, reprinted in C.J. Arthur, ed., The German Ideology. New York: International Publishers, 1970. Pp. 109-114. 6. Productive and Unproductive Labour in Classical Economics -Smith, Wealth of Nations

-Say, J.B., Treatise on Political Economy, trans. C. R. Prinsep, (reprinted by A.M. Kelly, New York, 1964. Pp. 119-127. -Malthus, Principles of Political Economy -Mill, J.S., Principles of Political Economy, Book I, Chapters I III. 7. Pre-Marxian Socialist Thought and Classical Political Economy: What is the Connection? -Proudhon, Pierre-Joseph., La Philosophie de la Misère. -Sismondi, New Principles of Political Economy. -Hodgskin, Thomas, Labour Defended Against the Claims of Capital. New York: Augustus M. Kelly, 1963. -Bray, John, Labour s Wrongs and Labour s Remedy. Preface, Introduction, Ch.1-6. -Thompson, William, Labour Rewarded. Pp. 1-41. 51-59, 75-88. 8. Hume, Ricardo and Mill on Trade -Hume, David, Of the Balance of Trade. In E. Rotwein, ed. David Hume Writings on Economics. Pp. 60-77. -Ricardo, David, Principles of Political Economy, Ch.7. -Mill, J.S., Principles of Political Economy, Ch.XVII-XX. 9. Smith and Ricardo on Taxation -Smith, Wealth of Nations, Bk.IV, Ch.2. -Ricardo, Principles of Political Economy, Ch.VIII-XVIII. 10. The Currency School-Banking School Controversy: A Case Study of the Interplay of Economic Theory, Economic Policy and Ideology - Overstone, Lord, "Reflections Suggested by a Perusal of Mr J Horsley Palmer's Pamphlet on the Causes and Consequences of pressure on the Money Market," (1837) in Lord Overstone, Tracts and Other Publications on Metallic and Paper Currency (1857), pp.1-40. - Overstone, Lord, "Letters to the Editor of The Times on the Bank Charter Act of 1844, and on the State of the Currency in 1855-1857," in Overstone (1857), pp. 309-338. - Overstone, Lord and Robert Torrens, "The Petition of the Merchants, Bankers and Traders of London against the Bank Charter Act; with Comments on Each Clause," in Overstone (1857), pp. 285-308. - Tooke, Thomas, An Inquiry into the Currency Principle: The Connection of the Currency with Prices and the Expediency of a Separation of Issue from Banking (1844). Chapters 1, 10-15, Postscript. - Mill, John Stuart, Principles of Political Economy with Some of Their Applications to Social Philosophy (1848). Book III, Chapters 11-13, 22-24. 11. On Slavery -Steuart, J., An Inquiry into the Principle of Political Economy, Vol.I, Ch.7. -Smith, Wealth of Nations, Bk.I, Ch.8, p.98-99. Book III,Ch.2., Bk IV, Ch.9, pp. 683-4. -Tucker, George, Political Economy for the People. 1859. Ch.8.

-Mill, J.S., Principles of Political Economy, Book II, ChV. -Marx, Pre-Capitalist Economic Formations. (or, alternatively, in the Grundrisse. Translated by Martin Nicolaus. New York: Vintage, 1973. Pp. 471-514.) 12. Is there anything in Marx s early writings (pre-1848) for Economists? -Marx, Early Writings, ed. by Quintin Hoare -Marx, The Poverty of Philosophy -Marx, The German Ideology, Part 1. 13. Historicism and the Methodological Critique of Classical Economics -Comte, The System of Positive Philosophy, in Kapp and Kapp, eds., History of Economic Thought: A Book of Readings. No.18. -Jones, The Distribution of Wealth, in Kapp and Kapp, eds. No.19. -von Schmoller, Political Economy and its Methods, in Kapp and Kapp, eds. No.20. -Toynbee, Ricardo and the Old Political Economy, in A. Toynbee, Toynbee s Industrial Revolution. New York: A.M. Kelly, 1969. Pp.1-26. 14. Economists and the Economics of the Poor Laws - Bentham, J., Essays on the Poor Laws of 1796 - Malthus, T.R., First Essay on Population - Malthus, T.R., Second Essay on Population - Townsend, Dissertation of the Poor Laws - Ricardo, Principles of Political Economy, Ch.V - Senior, Nassau, Three Lectures on the Rate of Wages 15. Say's Law and Classical Economics - Say, Jean-Baptiste, A Treatise on Political Economy (1804). - Say, Jean-Baptiste, Letters to Mr. Malthus. - Mill, James, "Commerce Defended," (1808) in D. Winch, ed., James Mill: Selected Economic Writings. - Ricardo, David, Principles of Political Economy. - Ricardo, David, selected letters, especially letters to and from Thomas Malthus - Mill, J.S., Some Unsettled Questions of Political Economy (1844), Essay #2, "On the Influence of Consumption on Production." Rules for Submitting Essays. 1. Topic should be chosen, in consultation with the instructor, by October 5, 2016. 2. A first draft of the essay should be delivered to the instructor by November 9, 2016. As soon as possible thereafter, the instructor will discuss the draft with the author, and may offer suggestions for revision. If a draft is not delivered by November 6, there may be no opportunity to submit a second draft. 3. The final version of all essays, whether revised or not, must be delivered by December 7, 2016. 4. Essays should be typed. The body of the text, excluding notes and references, must not

exceed 4000 words. Longer essays will be returned, ungraded, for abbreviation. 5. Essays must be carefully checked to eliminate all spelling, grammatical and typographical errors. All quotations must be clearly identified, and all statements based on a secondary source must be vouched for by reference to that source. An essay that does not meet these requirements will be returned, ungraded, for re-writing. 5. It is recommended that students keep an extra copy of their final draft for their own files.