Sunday, April 28, 2013

A Second American Century?

A recurring topic in our course has been the United States' shift from isolationism to the internationalism represented by the Marshall Plan and Bretton Woods.

The shift in public opinion about America's proper place in the world is perhaps best exemplified by Henry Luce, publisher of Time Magazine during WWII, who in 1941 exhorted President Franklin Roosevelt and policymakers to pursue the "first great American Century." Internationalists such as Luce believed that the US should use its economic and military might to promote democracy and act as the world's Good Samaritan.

The first American Century petered out in the 1970s as US growth slowed and the Soviet Union reached military parity, but it was temporarily resurrected by the fall of the Soviet Union in 1991. Currently, the great American international project seems to have hit another bump in the road with new economic difficulties, mixed success (at best) in two wars of choice, and serious questions about whether the US can afford prolonged military dominance.

Richard N. Haass, for one, is more optimistic. The president of the Council on Foreign Relations argues that, despite recent troubles, it's time the US pursue the second American Century. American military might is still unmatched while our economy remains strong (if not necessarily as strong as we'd like). While we first have to get our ducks in a row at home, Haass believes we can once again serve as a beacon to the world by establishing a global order of cooperation that promotes international law and solves transnational problems such as global warming.

Read his piece and share your thoughts for participation credit. Do you agree with his assessment that it's possible? Whether or not it's possible, is this something the US should pursue?

Friday, April 19, 2013

Review for Second Closed-book Assessment


The review sheet for the second closed-book assessment is now available. The test will take place on the final day of class, next Thursday, April 25th. I have scheduled a review session for will be scheduling a review session this coming Wednesday, April 24th at 5:30 PM in Buckman 212. When the details are available I will post them here.

Tuesday, March 26, 2013

PBS Companions to "Inside the Meltdown"


Today we watched a Frontline documentary about the 2008 financial crisis. There are two strong companion pieces to "Inside the Meltdown."

"The Warning", sort of a prequel, champions a little-known woman (Brooksley Born) who chaired a little known regulatory agency (the Commodity Futures Trading Commission) and sounded an early (and ultimately unheeded) warning that trade in unregulated securities could seriously harm the US economy.

"Breaking the Bank," is the sequel. It focuses predominantly on how large banks struggled with the shock waves of the financial crisis and subsequent bailout.


You'll probably notice a bit more of a bias in the first one, but it addresses two major themes of our course: 1) what is the appropriate balance of state-market economic activity, and 2) how much of an invisible hand is there when the state (via the Fed) essentially sets the terms of economic intercourse? The second documentary overlaps a lot of today's story and takes a more practical look at government involvement in the Bank of America / Merrill Lynch merger.

You can watch both documentaries (and re-watch "Inside the Meltdown") by clicking on the links above. Those of you who would like to earn some participation points can watch a segment, discuss how it relates to class learning, and share your thoughts: two points for initial comments, one point for replies to other students.

Tuesday, March 5, 2013

Midterm Course Evaluations

Today, I handed out progress reports assessing your performance in this course to date. Now, I would like you to assess my progress.

Please head to the link below and fill out the midterm course evaluation. Most of the questions are required, excepting the final free response question. It should take you five minutes, at most.

http://www.surveymonkey.com/s/5T7XJXJ

I am looking to get 75% saturation on this survey (in our class, that's only 14 responses) and I won't stop bugging you until I get it.

Unlike end-of-course evaluations, these will actually help me make this class better, rather than the next one I teach. Thus, if you think you can benefit from some changes (or strongly believe things should stay the same), here is your chance to let me know--anonymously.

Friday, March 1, 2013

Who Owns Your Beer?

For participation credit, share your thoughts and feelings about the documentary, Beer Wars (available on Netflix Streaming), and what it says to you about the proper relationship between government power and the products you buy.

In related news, Professor Phillip Howard at Michigan State University designed a fantastic infographic illustrating consolidation in the beer industry. Who owns your (assuming you are of drinking age) favorite brand? Double click on the image below to zoom in and explore.

 

Related: An historical political economy explanation for America's obsession with light beer.

Thursday, February 14, 2013

Review for First Closed-book Assessment

Your first Closed-book Assessment is Thursday, February 21. There will be a review session will be in our usual classroom (222 Buckman) from 4-5 PM on Monday, February 18. The review sheet is available for download.



The instructions for the test are as follows:
  • Provide your own blue exam booklet.
  • Closed-book during the full 1:15 period (no notes or electronics)
  • You will respond to three short essay questions.
  • These essay questions are from the review sheet above.
  • You will be offered three pairs of questions to answer, and you may answer one question per pair.
If you have any questions, do not hesitate to ask me via email or stop by during office hours (or make an appointment).

Tuesday, February 5, 2013

The Economist's Interactive Big Mac Index

Check out the Interactive Big Mac Index that we talked about in class, courtesy of The Economist.



The page lets you play with the variables a bit. You can even download the time-series data in Excel format if you want to play with it.

For participation credit, share why you think certain currencies are over- or undervalued, why you might think the Big Mac Index is not a proper measure of currency valuation, or why you think currency valuations may fluctuate over time.