Lesson 10: Political Economy and Macroeconomics

Please read "The Corruption of Economics", "What Henry George Left Out...", and "Picturing the Boom-Bust Cycle"

1. Did political economy (or economics) achieve a body of accepted truth during the 20th century? In what respects does the discipline still lack coherence?            | Gaffney |

2. List some of the effective political successes of the Single Tax movement that were ignored by historians.            | Gaffney |

3. According to Gaffney, what historical factors made the Single Tax movement lose its momentum?            | Gaffney |

4. Why do Neo-classical economists teach that equity and efficiency are opposed to each other? How does Henry George's political economy reconcile them?           | Gaffney |

5. Describe a difficult public-policy problem and how Georgist public revenue policy would help to solve it.

6. What is it about the methodology of neoclassical economics that complicates the question of externalities?            | What George "Left Out" |

7. What is the most widespead and important externality?            | What George "Left Out" |

8. How can Georgist political economy help to simplify questions of environmental policy?            | What George "Left Out" |

9. Why was it not necessary to discuss the business cycle in The Science of Political Economy?            | What George "Left Out" |

10. At the "full employment point", why are a significant number of people still involuntarily unemployed?           | The Boom-Bust Cycle |

11. What form of supply shock is, under current policies, a structural part of a growing economy?           | The Boom-Bust Cycle |

12. What are the two ways in which land speculation retards the economy?           | The Boom-Bust Cycle |

13. In a brief essay, answer this question: How would society be affected by a more widespread understanding of fundamental economic principles?