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 also 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.

Texts:
1. The Mind and the Market: Capitalism in Western Thought by 
Jerry Muller
2. Free to Choose by Milton Friedman and Rose Friedman
3. Atlas Shrugged by Ayn Rand
4. Economics: An Introduction to Traditional and Progressive 
Views by Howard Sherman, E.K. Hunt, Reynold Nesiba, Philip 
O’Hara, Barbara Wiens-Tuers

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.

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.

Additional Topics:
The readings for these topics will be taken from news stories 
at the time of the assignment.

Modern forms of capitalism, socialism, mixed economy and 
development.

Analysis of economic situation in China and developing 
countries.

Role of the state in capitalism.

The role of the state in regulation, redistribution, and market 
failure.