1. Chapter 2 in Kotz and Ch. 1 in Gertz & Kharas, eds. explain that neoliberalism was a planned and well-executed political strategy whose goal was to challenge the role of the government in the capitalist economy. Its primary aim was to remove the various watchdogs that had been set up in various government agencies to protect the public from monopoly power, negative externalities of pollution and congestion, alleviate the worst kinds of poverty and unemployment, and sound a warning bell when speculative behavior let to asset bubbles. This is all captured in Kotz, Table 2.1, “The Ideas and Institutions of Neoliberal Capitalism,” and in Gertz & Kharas, Ch. 1, p. 9

In 250 words,
i. Explain what is meant by “stabilization, privatization, and liberalization. (Define each term, given an example, and place it in the context of neoliberalism)
ii. Explain WHY neoliberalism attempted to alter the role of the government in the economy and break up the accord that had fostered conversations between labor unions and the management of large corporations.

  1. (200 words) According to Gertz & Kharas, Ch. 1, why is neoliberalism under threat today? What or who is threatening it? What does this mean for US politics?
  2. Chapter 3 in Kotz looks back at “the golden era”—the era of regulated capitalism which ushered the post-war growth and development of the US economy from 1945 – 1970.

In 250-350 words,
i. Explain WHY Kotz refers to this era as the golden age. What made it so enviable?
ii. Explain why the largest of the US corporations supported regulated capitalism during 1945-70 but later dropped its support and advocated for its overturn. In your answer, explain how the oligopoly sector benefited from the policies of regulated capitalism and what happened during the 1970’s which convinced the oligopoly sector to advocate for the end of regulated capitalism.

  1. (250 words) Was US labor “left out to dry”? What is your understanding of the reaction of US labor to the crisis of the 1970’s? What was the reaction of top 1000 US corporations and the various Presidents/Congress of the US from 1980 to the present. Support your opinion with the discussion from Kotz, Ch. 3 as well as from the videos: “The Century: America’s Time – 1976-1980,” and “Decline of US Labor Unions (Part I) and (Part II).
  2. The theme of Chapter 4 in Kotz and Chs. 2 & 3 in Gertz & Kharas, eds. is that neoliberalism capitalism has failed to deliver on its promise to deliver even faster economic growth with enhanced opportunities for all in society to benefit from the opportunities of the free market economy.

In 350-500 words, explain
i. WHY neoliberal economies did not grow as fast as neoliberal policies promised
ii. Why does Leipziger (Ch. 2 in Gertz & Kharas) suggest that industrial policy – a distinctly NON-neoliberal policy – is more attractive to emerging markets than is the neoliberal agenda of the US (be sure to define industrial policy in your answer)
iii. How significant is the current state of income inequality and why persistent income inequality can undermine neoliberalism. (Use both Kotz, Ch. 4 and Revenga & Dooley (ch. 3 in Gertz & Kharas, eds.)

  1. (150-200 words) Drawing on the Frontline video “Trumps Trade War” and Ch. 1 in Gertz & Kharas, explain the split within the neoliberal camp between the “globalists” and the “nationalists.” Are you surprised by this split? Why or why not?

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