PADM 4858 - Business and Inequality

(crosslisted) SOC 4850
(SBA-HE)

Spring. 3 credits. Letter grades only.

Prerequisite: Intermediate Microeconomics (PADM 5210, ECON 3030 or equivalent). Recommended prerequisite: introductory coursework in statistics and finance. Co-meets with PADM 5858/SOC 5850.

D. Reidl.

Through discussions, presentations, and research papers, we will examine increasing US inequality, and the interaction of business’s role and impacts, alongside potential policy prescriptions (UBI, tax policy, job guarantees, etc.). Topics will also include potential sources of inequality. Areas explored include: Can public policy blunt inequality without unduly harming markets? What are the responsibilities of private sector companies to society, and what are their incentives? How does inequality affect business (through customers, workers – human capital), how does business exacerbate and exploit inequality? Does inequality reduce economic growth and productivity (due to rent-seeking activities, reduced opportunity)? Does corporate influence on the political system reinforce inequality? Is labor disadvantaged by social safety net structures, such as policies tying benefits to work requirements? Does inequality destabilize financial markets and fuel speculation ((e.g., 1920’s margin investing, GameStop, etc.)? Additional readings and in-depth research paper required of Master’s students.

Outcome 1: Students will investigate inequality’s potential sources, magnitude, and changes over time.

Outcome 2: Students will articulate business’s role within society as it pertains to inequality.

Outcome 3: Students will explain how short-term and/or individual financial incentives can erode long-term economic/societal outcomes.

Outcome 4: Students will describe when business interests are mutually aligned with inequality reductions and when they deviate.