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.