Poli 363 fall 2011
Canadian Public Policy :Eight Policy Problems
Professor Harold Chorney
control, the content and/or evaluation scheme in this course is subject
United States in the light of the on going security needs of both the United States and Canada and our increasing economic dependence upon American export markets in an era where globalization and outsourcing pose important challenges to our prosperity.The frustration of Canadian policy makers and public opinion over soft-wood lumber exports and cross border traffic may lead to a rethink about the terms of free trade with the US. The Democratic party’s apparent preference for a more protectionist trade stance will be an important factor in the years to come.
We explore a number of themes that lead logically out from this new environment in the new global economy of 2011. My goal is to help the student become a skillful policy analyst and an independent thinker about policy issues.
Harold Chorney, The Deficit Papers,Montreal: 2010 ed..(available through me)
Joseph Stiglitz, Free Fall:America,Free Markets, and the Sinking of the World Economy
Hassan Bougrine, Ian Parker and Mario Seccareccia eds. Introducing Microeconomic Analysis
Mario Seccareccia and Hassan Bougrine, Introducing Macroeconomic Analysis
Caroline Lucas and Michael Woodlin , Green Alternatives to Globalization
Stephen Clarkson, Does North America Exist ? Transborder Governance under Globalization and the War on Terror
Basic background readings:
Harold Chorney, Revisiting Deficit hysteria in Labour/Le travail fall 2004.pp.245-258.(available on internet) (assigned reading)
The Finance Crisis and Rescue, The Rotman School of Management, 2008 (recommended)
Stephen Clarkson, Uncle Sam and US (recommended)
Ha-Joon Chang, Bad Samaritans :The Myth of Free Trade and the Secret History of Capitalism (recommended reading)
Joseph Stiglitz, Making Globalization Work (recommended)
Kevin Phillips, Bad Money:Reckless Finance, Failed Politics and the Global Crisis of American Capitalism Viking 2008 (strongly recommended reading)
Simon Johnson and James Kwak, 13 bankers:The Wall Street Takeover and the Next Financial Meltdown, N.Y. : Vintage, 2011.(strongly recommended)
Michael Lewis, The Big Short:Inside the Doomsday Machine, N.Y. : W.W.Norton, 2010.(recommended)
John Kenneth Galbraith, The Economics of Innocent Fraud(recommended reading)
Samuel P. Huntington, The Clash of civilizations and the Remaking of the World Order, Simon and Schuster, 1997.(recommended rerading)
Daniel Drache, Borders Matter: Homeland Security and the Search for North America(recommended reading)
John Dean , Conservatives without Conscience (recommended reading)
George Soros, The New Paradigm for Financial Markets :The Credit Crisis of 2008 and What it Means(Public Affairs)
Thomas Kean& Lee Hamilton et al, The 9/11 Report The National Commisssion on Terrorist Attacks Upon the United States (recommended reading)
Tim Lewis, In the Long Run We’re All Dead: The Canadian Turn to Fiscal Restraint. (recommended reading)
Joseph Stiglitz, Globalization and its Discontents, 2001.( recommended )
Joseph Stiglitz : The Roaring Nineties: A New Twist on the World’s Most Prosperous Decade( recommended reading)
Harold Chorney, The Economic Benefits of Linguistic Duality in Albert Breton, The Economics of Bilingualism, Ottawa:Canadian Heritage, 1998.(recommended reading also may be available on the internet)
Harold Chorney and Philip Hansen, Toward a Humanist Political Economy, Black Rose, Montreal, 1992. .(recomended reading)
Bai Gao, Japan’s Economic Dilemma:The institutional origins of prosperity and stagnation, Cambridge university Press, 2001.
Phillipe Legrain, Open World The Truth about Globalization, 2002, Abacus Books
Noam Chomsky, 9/11, NY: Open media Book, Seven Stories press,: 2001.(recommended reading)
Lewis Lapham, Gag Rule: On the Supression of Dissent and the Stifling of Democracy (recommended reading)
Doris Sommer, Bilingual Aesthetics (recommended)
George Grant, Lament for a Nation.
Lloyd Axworthy, Navigating a New World:Canada’s Global Future
The Honourable Michael Kirby &the Honourable Margorie Lebreton co chair, The Health of Canadians: The Federal Role, Final Report on the state of the Health Care System in Canada, Vol Six:Recommendations for Reform, (assigned reading)
Jagdish Bhagwati, A Stream of Windows:Unsettling Reflections on Trade, Immigration and Democracy
Jim Stanford,Paper Boom, CCPA, 1999.
Lars Osburg &Pierre Fortin, Unnecessary Debts, Toronto, Lorimer, 1996.
Andrew Jackson,et al, Falling Behind:The State of Working Canada, 2000
Bob Rae, The Three Questions:Prosperity and the Public Good, Toronto Penguin, 1998.
Daniel Drache & Terry Sullivan,eds. Health Reform: Public Success/Private Failure NY: Routledge, 1999
Michael Rachlis & Carol Kushner, Strong Medicine,Toronto:Harper Collins, 1994.(recommended)
Linda McQuaig, The Cult of Impotence:Selling the Myth of Powerlessness in the Global Economy, Viking 1998.
Linda McQuaig, Shooting the Hippo, Viking, 1995.(recommended reading)
Thomas Palley, Plenty of Nothing, The downsizing of the American Dream and the Case for Structural Keynesianism, Princeton University Press, 1998.
Colleen Fuller, Caring For Profit:How Corporations are Taking Over Canada’s Health Care System (strongly recommended reading)
Stephen McBride and John Shields, Dismantling a Nation:The transition to Corporate Rule in Canada.Halifax, Fernwood, 1997.
Jeremy Rifkin, The Age of Access, Tarcher, Putnam Penguin, New York, 2000.
The Empathetic civilization: the race to global Consciousness in a world of crisis.N.Y.:Tarcher Putnam Penguin, 2009
John Grieve Smith, There is a Better Way: A New Economic Agenda, London:Anthem Pres, 2001.
Paul Omerod, Butterfly Economics, NY: Pantheon Books, 2000.
Daniel Lazare, What’s Killing Our Cities and How We Can Stop It, New York:Harcourt, 2001
Edmund P.Fowler & David Siegel, Urban Policy Issues :Canadian Perspectives, Toronto:Oxford University Press.,2002.
Andrew Sancton, Merger Mania: The Assault on Local Government, Montreal: 2000.(recommended)
Harold Chorney, Review of Andrew Sancton’s book Merger Mania in Canadian Journal of Regional Science, vol.23 #1, 2001, pp.175-178.(recommended)
Alan Broadbent Urban Nation:Why we need to give power back to the cities to make Canada strong, Harper Collins,2008.
Harold Chorney , City of Dreams: Social Theory and the Urban Experience, Nelson, 1990
Mark Kingwell, Concrete Reveries:Consciousness and the City, Viking, 2008
Key Web sites:
http://www.cec.org, web site of the North American Commission for Environmental Co-operation.
www. ville.Montreal.qc.Ca, web site of the city of Montreal
IMF; OECD; Eurostat; U.S.Treasury; U.S. Bureau of Labour statistics; Statistics Canada.
The grade will be based on a final exam 50 % and a mid term test in the first week of November or an essay due in the first week of November 50 %.
1. Introduction and overview. How does public policy analysis work? The role of interdisciplinarity. Research techniques. Policy and values.Policy and the political process. Globalization and trade. Business cycles and public finance. The long recession.
Policy after the market crash, the credit crisis and the post 9/11 world.
Readings: 9/11 report; Drache.The Rotman school; Phillips, Soros, Chorney blog items on credit crisis, manias panics and bailouts, and the Keynesian revival,Ha-Joon Chang, Stiglitz.Clarkson.
2. The Return of Keynesian economics in public policy.Obama, Bush, McCain,the Tea party Republicans, Clinton (Hillary and Bill) and the revival of Keynes in the US. Canadian fiscal conservatism . Public finance.The debate about deficits,surpluses, debt and employment. The return of regulation after Enron, Madoff, the crash on Wall street, the banking crisis, the dot com bubble bursting and the credit crisis and sub-prime housing market. The current dilemma,mass unemployment and the possibility of a double dip recession.
Readings: Galbraith; Chorney on revisiting deficit hysteria; on deficits; Tim Lewis , Chorney blog items on revival of Keynes and the financial crisis.Chorney papers from the Eastern Economics association and the Canadian economics association on Keynes and the general theory and on Rediscovering Keynes and the origins of quantitative easing and the crisis. (See this blog, June 3rd, 2011 )Chorney on the role of public enterprise and regulation in The deficit papers. Chorney U tube items on Keynesianism, financial crisis and deficits and debt.
3. The Challenge of Protecting our Health care system. The Canadian, British and American models. Federal provincial disputes over health care. The Romanow Commission. Alberta versus the Federal Government. Market versus public approaches. The American health care debate. The question of affordability.
Readings:Colleen Fuller, Romanow and Kirby Reports available on the internet;Drache and Sullivan; Rachlis and Kushner.Canadian Health Information data base.Clarkson.The New York Times and the Wall Street journal, Huffington post and Salon magazine.
4. The rise and fall of the mega-city of Montreal. The background, the debate, the election and the demerger referenda.The state of politics at city hall.The Mayor and Council.Scandal at city hall. Infrastructure collapse.Budgetary questions.The problem of homelessness. A federal role in cities ? The challenge for local democracy and economic development.
.Readings: Sancton; Aubin; Broadbent;Chorney , Mark Kingwell.
5. Managing the global economy.Corporate behaviour. The problem of capital flows. The Argentine debt crisis.Latin American contagion. The need for new financial architecture. The Tobin tax, debt repayment standstills and reworking exchange rates. Market disorder versus regulated management. Turbulence in Venezuela. Canada and Latin America.Venezuela& oil.The Brazilian third way.The policy stance of the new Japanese government with respect to globalization. The European debt crisis and the European Central Bank.
Readings: Galbraith; Stiglitz;internet on Argentina and debt crisis and Venezuela.Clarkson on Nafta; Bai Gao on Japan, Chorney blog.
6. Environmental challenges. NAFTA and managing the environment.The tension between economic growth and the environment.The Kyoto accord. Globalization and Green Politics ? Hurricane Katrina and civil preparedness.Dion’s Green shift.
Readings: Clarkson; Drache; Bhagwati; internet, Lucas and Woodlin Green manifesto
7. Bilingualism: A Canadian defining characteristic.The” Spanish challenge ” in the United States.
Readings: Chorney in Albert Breton; Huntington on the Hispanic Challenge; Sommer on Bilingual Aesthetics.
8.. Canada in a global world; Canadian foreign policy in the era of NAFTA and 9/11. Our security. Our relationship with the United States. The Axworthy legacy. From Axworthy to Manly to Graham to Pettigrew. The missile defense controversy. A new way forward ? The clash of civilizations ? Chomsky versus Huntington.
Readings: Drache;9/11 report;Chomsky ;Huntington; Axworthy.
9. The energy crunch. Alberta and the problem of fiscal federalism. Sharing the wealth of regional resources. Canadian oil and American needs, a strategic partnership. The future of free trade.
Weekly assignments: September: Read the Revisiting deficit hysteria (internet) and Manias panics and bailouts essays. The first is on the net the second is in my older blog Jan.2009 Begin reading Clarkson and Stiglitz.
Readings Sept 30 The deficit papers chapters; start with ch. on Keynes, the new introduction to collection, and deficit hysteria.
Essay assignment: Due the first week of November Thursday class .
Write an essay of 12-15 pages on one of the following topics drawn from the course . Be sure to use a manual of style and properly cite sources and providea bibliography. You should use books, periodical literature and internet sources that are properly noted.
1. Discuss the debate over deficits, surpluses and debts. evaluate the Obama stimulus as compared to the Harper one .
2. Explain the origins of the recent financial crash. What role did deregulation and laissez-faire play in this crash. What has been the experience of financial panics and crashes in history.
3. Compare Keynes’ theory of unemployment and anti-recession policy with that of the monetarists.
4. Explore the problem of inflation in a capitalist economy. Can moderate inflation be compatible with real economic growth and low unemployment.
5. What led to the eclipse of Keynes from 1974 to 2008.
6. Explore the oil industry and the global pricing system for oil.
7. What is the history of Canadian health care. How does the Canadian system compare to the American debate over health care.
8. Explore the origins of neo-conservatism. How was it able to have such a lasting large impact upon western societies.
9. Discuss the debt crisis and dollar currency boards in Latin America and their impact upon Argentina.
10.Compare and contrast the argument of Noam Chomsky with respect to American power as opposed to the work of Samuel Huntington.
11. Examine the history and evolution of the debate over global warming and Canada’s policy stance toward this critical issue.
12. What has been the Canadian foreign policy orientation. what should it be.
13.Examine the state of free trade between Canada, the U.S. and Mexico.Explore the evolution of the doctrine, its consequences for Canada and its likely future evolution.
14. Explore the roots of the Tea Party in the U.S. How do they compare to Canadian neo-conservatives ?