FINA 4050 Capitalism Spring 2013 Dr. Jeffry M.

. Netter Josiah Meigs Professor Terry Chair of Business Department of Banking and Finance Office: 456 Brooks Hall Email: jnetter@uga.edu Phone: 706 2073056 (cell for emergencies) M 3:30-6:20 MLC 101 "I will be academically honest in all of my academic work and will not tolerate academic dishonesty of others." UGA Student Honor Code http://www.uga.edu/honesty/ a) FINA 4050 Capitalism b) Course description The class will provide an introduction to the arguments for and against capitalism by, among others, Smith, Marx, Hegel, Keynes, Hayek, and Freidman. While some analysis will use the neo-classical economic model the student will be exposed to other viewpoints. For example, the writings of the 20th century economic philosopher Ayn Rand, whose unique system of thought, 'Objectivism', has garnered both passionate supporters and vehement detractors, will be introduced. Alternatively the students will examine progressive views of capitalism concentrating on distributional effects, and exploitation. Students hopefully can weigh different approaches and apply them to an analysis of real world issues. This class is very much a work in progress and will benefit from student input. c) Prerequisites, corequisites, and cross-listings for the course none d) Course objectives or expected learning outcomes This course introduces students to the concept of capitalism. The student will study capitalism and other alternative societal mechanisms for resource allocation including socialism and a mixed economy. The mechanism will be readings both critical and supportive of capitalism as an economic system including moral, efficiency, and ethical views. Capitalism must first be defined and put in a historical context. The student will develop an understanding of capitalism where decisions about production and allocation are determined

mainly by private decisions and exchanges in a market. We will discuss alternative methods of allocation. The role of private property and state decision making in various areas will be discussed. Capitalism and alternative systems will then be analyzed in terms of the efficiency of the resource allocation, the method of resource allocation, the moral and ethical components of resource allocation under various systems. Throughout the course, both historical and modern examples will be essential to the analysis. e) Topical outline To be announced. f) University Honor Code and Academic Honesty Policy As a University of Georgia student, you have agreed to abide by the Universitys academic honesty policy, A Culture of Honesty, and the Student Honor Code. All academic work must meet the standards described in A Culture of Honesty found at: http://www.uga.edu/honesty. Lack of knowledge of the academic honesty policy is not a reasonable explanation for a violation. Questions related to course assignments and the academic honesty policy should be directed to the instructor. g) The course policy is a general plan for the course; deviations announced to the class by the instructor may be necessary. h) Principal course assignments There will be readings from four texts and online sources. There will be one in class test and a final. The test questions will come from the students and students will be grade on their submitted questions.

Dates: March 4 March 25: April 22: May 6:

Test questions written by students due Test 1 . Test questions for Final due Final 2:30

Weeks 1-8: Efficiency Arguments For and Against Capitalism Key concepts include (a) Pareto efficiency, (b) economic incentives, (c) information production and aggregation, and (d) market allocation versus command allocation. Text 1 (we will add readings here) Ch. 1 Historical Backdrop Rights, Righteous and Virtue starting with Aristotle Ch. 3 Adam Smith Ch. 5 Edmund Burke Ch. 6 Hegel Ch. 7 Marx Ch. 9 Weber Ch. 11 Schumpeter Ch. 12 Keynes Ch. 13 Hayek
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Text 2 pp. 1-90

Week 9: Moral Arguments For and Against Capitalism Key concepts include (a) economic efficiency as an ethical criterion, (b) individual autonomy vs. the state, (c) relationship between economic and political freedom, and (d) inequality and class conflict, (e) exploitation Text 2 pp. 91-149 Text 3 All Additional Topics: The readings for these topics will be taken from news stories at the time of the assignment. Weeks 11-14: Modern Forms of Capitalism, Socialism, Mixed Economy and Development And Modern Role of the State in Capitalism The role of the state in regulation, redistribution, and market failure. i) Specific course requirements for grading purposes The elc website will provide a more updated schedule of readings. If possible all assigned material should be read before class. There will be two in class tests and objective final. The questions for the two tests in class (not the final) will come from questions submitted by students. j) Grading policy One two hour in class test and the final each count 35%, questions submitted for the tests 20%, and professor discretion will count 10%. Professor discretion is based on improvement or or declining performance and contributions to class.We will see how the class goes for a distribution. I will note this quote from: Andrew Perrin, a sociologist at the University of North Carolina, Chapel Hill. An A should mean outstanding work; it should not be the default grade, Mr. Perrin said. If everyone gets an A for adequate completion of tasks , it cripples our ability to recognize exemplary scholarship. k) Attendance policy Attendance is expected and maybe monitored at any time.

l) Required course material Texts: 1. The Mind and the Market: Capitalism in Western Thought, by Jerry Muller 2. Free to Choose, by Milton Friedman and Rose Friedman (an alternative is to watch the youtube videos of the Friedman PBS show). 3. Atlas Shrugged, by Ayn Rand. This book will be provided to students. 4. Online postings this will be an important source of readings. They will be on elc and Facebook m) Policy for make-up of examinations Individual basis if you have a valid excuse. Otherwise the weigh is added to the final. Contact information: Professor Jeffry Netter 456 Brooks Hall jnetter@terry.uga.edu 706 542 3654 Office hours Tues. and Wed. 11:00 and by appointment. Check beforehand if possible. I often have unexpected campus meetings and other responsibilities. It is always best to email first to check availability. I also respond fairly quickly to email questions.

Communication and Website. There is an elc website for the course. The website contains important notices, answers to problems discussed in class, readings, and identification of materials of interest to the class. You are responsible for all information announced in class or posted on the website, including changes to the course syllabus and schedule. Students should access the class Facebook page.