The teaching of economics gets an overdue overhaul - 0 views
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Change, however, has been slow to reach the university economics curriculum. Many institutions still pump students through introductory courses untainted by recent economic history or the market shortcomings it illuminates.
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A few plucky reformers are working to correct that: a grand and overdue idea. Overhauling the way economics is taught ought to produce students more able to understand the modern world. Even better, it should improve economics itself.
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Yet the standard curriculum is hardly calibrated to impart these lessons. Most introductory texts begin with the simplest of models. Workers are paid according to their productivity; trade never makes anyone worse off; and government interventions in the market always generate a “deadweight loss”. Practising economists know that these statements are more true at some times than others
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Economics teaches that incentives matter and trade-offs are unavoidable. It shows how naive attempts to fix social problems, from poverty to climate change, can have unintended consequences. Introductory economics, at its best, enables people to see the unstated assumptions and hidden costs behind the rosy promises of politicians and businessmen.
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A Chilean professor, Oscar Landerretche, worked with other economists to design a new curriculum. He, Sam Bowles, of the Santa Fe Institute, Wendy Carlin, of University College London (UCL), and Margaret Stevens, of Oxford University, painstakingly knitted contributions from economists around the world into a text that is free, online and offers interactive charts and videos of star economists. That text is the basis of economics modules taught by a small but growing number of instructors.
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Students pay $300 or more for textbooks explaining that in competitive markets the price of a good should fall to the cost of producing an additional unit, and unsurprisingly regurgitate the expected answers. A study of 170 economics modules taught at seven universities found that marks in exams favoured the ability to “operate a model” over proofs of independent judgment.
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“The Economy”, as the book is economically titled, covers the usual subjects, but in a very different way. It begins with the biggest of big pictures, explaining how capitalism and industrialisation transformed the world, inviting students to contemplate how it arrived at where it is today.
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That could mean, eventually, a broader array of perspectives within economics departments, bigger and bolder research questions—and fewer profession-shaking traumas in future.
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It explains cost curves, as other introductory texts do, but in the context of the Industrial Revolution, thus exposing students to debates about why industrialisation kicked off when and where it did.
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Thomas Malthus’s ideas are used to teach students the uses and limitations of economic models, combining technical instruction with a valuable lesson from the history of economic thought.
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“The Economy” does not dumb down economics; it uses maths readily, keeping students engaged through the topicality of the material. Quite early on, students have lessons in the weirdness in economics—from game theory to power dynamics within firms—that makes the subject fascinating and useful but are skimmed over in most introductory courses.
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Homa Zarghamee, also at Barnard, appreciates having to spend less time “unteaching”, ie, explaining to students why the perfect-competition result they learned does not actually hold in most cases. A student who does not finish the course will not be left with a misleading idea of economics, she notes.
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But the all-important exceptions are taught quite late in the curriculum—or, often, only in more advanced courses taken by those pursuing an economics degree.
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Far from an unintended result of ill-conceived policies, she argues, the roughly 4m deaths from hunger in 1932 and 1933 were part of a deliberate campaign by Josef Stalin and the Bolshevik leadership to crush Ukrainian national aspirations, literally starving actual or potential bearers of those aspirations into submission to the Soviet order
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The politics in this case was the Sovietisation of Ukraine; the means was starvation. Food supply was not mismanaged by Utopian dreamers. It was weaponised.
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. “Red Famine” presents a Bolshevik government so hell-bent on extracting wealth and controlling labour that it was willing to confiscate the last remaining grain from hungry peasants (mostly but not exclusively in Ukraine) and then block them from fleeing famine-afflicted areas to search for food.
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. Stalin was not only aware of the ensuing mass death (amounting to roughly 13% of Ukraine’s population). He actively sought to suppress knowledge of it (including banning the publication of census data), so as not to distract from the campaign to collectivise Soviet agriculture and extend the Communist Party’s reach into the countryside—a campaign Ms Applebaum calls a “revolution...more profound and more shocking than the original Bolshevik revolution itself”
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The book’s most powerful passages describe the moral degradation that resulted from sustained hunger, as family solidarity and village traditions of hospitality withered in the face of the overwhelming desire to eat. Under a state of siege by Soviet authorities, hunger-crazed peasants took to consuming, grass, animal hides, manure and occasionally each other. People became indifferent to the sight of corpses lying in streets, and eventually to their own demis
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While stressing Stalin’s goal of crushing Ukrainian nationalism, moreover, Ms Applebaum passes over a subtler truth. For along with its efforts to root out “bourgeois” nationalisms, the Kremlin relentlessly promoted a Soviet version of Ukrainian identity, as it did with most other ethnic minorities. Eight decades on, that legacy has done even more to shape today’s Ukraine than the Holodomor.