What does ethics have to do with engineering?

What does ethics have to do with engineering?

Professional and Business Ethics Prof. Peter Hadreas Spring, 2014 Course Website: http://www.sjsu.edu/people/peter.hadreas/courses/ ProfandBusEthics/ 1 Passage exerpted from last weeks reading about the prospect to raise the Minimum Wage to $10.10. Jason Furman, chairman of the White House's Council of Economic Advisers, and council member Betsey Stevenson referred in a blog post to a statement by more than 600 economists who cited recent academic findings that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market.

Many students dismissed this statement saying that the economists specified were unknown -- they might be all biased, possibly all Democrats or Republicans. But the method of ethical decision making, as in most decisions in business, is to work with probabilities. There is no right or wrong, that is right or wrong absolutely, but a probably more right or wrong. Also one of the important step in making such a decision is to become aware of you own biases. 2 So do we simply need to settle with dismissing the judgment of the 600 economists because they are unknown? No we dont. Theres plenty of information online specifying who the 600 economics are. See for example the letter posted by the 600 economists and available on line at http://www.epi.org/minimum-wage-statement/

3 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum See: Wage (See http://www.epi.org/minimum-wage-statement/ * Signifies Nobel laureate + Signifies Has served as American Economic Association president Henry Aaron, Brookings InstitutionKatharine Abraham, University of MarylandDaron Acemoglu, Massachusetts Institute of TechnologyFrank Ackerman, Synapse Energy EconomicsEarl Adams, Allegheny College (retired) Jacqueline Agesa, Marshall UniversityTanweer Akram, ING Investment ManagementRandy Albelda, University of Massachusetts, BostonCarolyn Aldana, California State University, San BernardinoMona Ali, State University of New York, New PaltzSylvia Allegretto, Sylvia Allegretto,

University of California, BerkeleyElizSylvia Allegretto, abeth Ananat, Duke UniversityBernard E. Anderson, University of PennsylvaniaMarcellus Andrews, Bucknell University August Ankum, QSI ConsultingEileen Appelbaum, Center for Economic and Policy Research and University of *+ LeicesterKenneth Arrow, Stanford University Michael Ash, University of Massachusetts, AmherstBevin Ashenmiller, Occidental College Glen Atkinson, University of Nevada, RenoDavid Autor, Massachusetts Institute of TechnologyM. V. Lee Badgett, University of Massachusetts, AmherstRon Baiman, Benedictine University Dean Baker, Center for Economic and Policy

ResearchErdogan Bakir, Bucknell UniversityStephen Baldwin, RetiredErol Balkan, Hamilton College Jennifer Ball, Washburn UniversityGustavo BarbozSylvia Allegretto, a, Clarion University of PennsylvaniaDavid Barkin, Universidad Autonoma Metropolitana, Mexico City William Barnes, University of PortlandCharles Barone, Dickinson CollegeAlan Barreca, Tulane UniversityChris Barrett, Cornell UniversityRobin Bartlett, Denison UniversityDonald Basch, Simmons CollegeLaurie Bassi, McBassi & CompanyFrancis Bator, Harvard UniversityWilliam Baumol, New York + University Amanda Bayer, Swarthmore CollegeDale Belman, Michigan State UniversityLourdes Beneria, Cornell UniversityPeter Berg, Michigan State UniversityGunseli Berik, University of UtahEli

Berman, University of California, San Diego 4 Names of the 600 Economists who Signs Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Alexandra Bernasek, Colorado State UniversityJared Bernstein, Center on Budget and Policy PrioritiesNancy Bertaux, Xavier UniversityCharles Betsey, Howard UniversityDavid Betson, University of Notre Dame Haimanti Bhattacharya, University of UtahCarole Biewener, Simmons CollegeCihan Bilginsoy, University of UtahCyrus Bina, University of MinnesotaJohn Bishop, Cornell UniversityJosh Bivens, Economic Policy InstituteSandra Black, University of Texas, AustinDavid Blanchflower, Dartmouth CollegeGail Blattenberger,

University of UtahRobert Blecker, American University Alan Blinder, Princeton UniversityBarry Bluestone, Northeastern UniversityLawrence Blume, Cornell UniversityPeter Bohmer, Evergreen State CollegeBarry Bosworth, Brookings InstitutionHoward Botwinick, State University of New York, CortlandHeather Boushey, Washington Center for Equitable GrowthRoger Bove, West Chester University (retired)Samuel Bowles, Santa Fe Institute Elissa Braunstein, Colorado State UniversityDavid Breneman, University of VirginiaMarc Breslow, Massachusetts Climate Action NetworkDominic Brewer, University of Southern CaliforniaNancy Brooks, Cornell UniversityDavid Brookshire, University of New MexicoChristopher Brown, Arkansas State UniversityClair Brown, University of California, BerkeleyThomas Bruggink, Lafayette

CollegeMichael Brn, Illinois State UniversityLuis Brunstein, Hiram CollegeRobert Buchele, Smith CollegeNina Banks, Bucknell UniversityJohn Burkett, University of Rhode IslandJoyce Burnette, Wabash CollegeGary Burtless, Brookings Institution Paul D. Bush, California State University, Fresno (emeritus)Al Campbell, University of Utah (emeritus)Jim Campen, University of Massachusetts, Boston (emeritus)Paul Cantor, Norwalk Community CollegeMarie-Louise Caravatti , American Federation of Teachers 5 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association

president Marie-Louise Caravatti , American Federation of TeachersJeffrey Carpenter, Middlebury CollegeMichael Carter, University of Massachusetts, LowellDell Champlin, Eastern Illinois University (retired)Richard Chapman, Westminster CollegeJohn Dennis Chasse, State University of New York, BrockportHoward Chernick, Hunter College, City University of New York Robert Chernomas, University of ManitobaVictor ChernozSylvia Allegretto, hukov, Massachusetts Institute of Technology Robert Cherry, Brooklyn CollegeLawrence Chimerine, Radnor Consulting ServicesMenzSylvia Allegretto, ie Chinn, University of WisconsinCharles Chittle, Bowling Green State UniversityMussaddeq Chowdhury, University of RedlandsPaul Christensen, Hofstra UniversityKimberly Christensen, Sarah Lawrence CollegeGary Clayton, Northern Kentucky UniversityRachel Cleetus, Union of Concerned ScientistsNathaniel Cline, University of

RedlandsRichard Coe, New College of FloridaJennifer Cohen, Whitman CollegeSteve Cohn, Knox College William Comanir, University of California, Los Angeles and Santa BarbaraSean Corcoran, New York UniversityPaul Courant, University of Michigan Carolyn Craven, Middlebury CollegeJohn Crespi, Kansas State University John Crespi, Kansas State UniversityJames Crotty, University of Massachusetts, AmherstDavid Cutler, Harvard UniversitySheldon DanzSylvia Allegretto, iger, Russell Sage FoundationSusan Davis, Buffalo State College Charles Davis, Indiana UniversityMaarten de Kadt, Not affiliatedCharles de Seve, American Economics + Group, Inc.Angus Deaton, Princeton University

Carmen Diana Deere, University of FloridaGregory DeFreitas, Hofstra UniversityWill Delavan, Lebanon Valley CollegeBrad DeLong, University of California, BerkeleyShanta Devarajan, World Bank Sean DEvelyn, Loyola Marymount UniversityJames Devine, Loyola Marymount University Geert Dhondt, John Jay College of Criminal Justice, City University of New York 6 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Peter Diamond, Massachusetts Institute of *+

Technology Ranjit Dighe, State University of New York, OswegoJohn DiNardo, University of Michigan + Avinash Dixit, Princeton University Arthur Domike, American UniversityDutkowsky Donald, Syracuse UniversityPeter Dorman, Evergreen State CollegeAsif Dowla, St. Marys College of MarylandMatthew Drennan, University of California, Los AngelesLaura Dresser, University of Wisconsin, MadisonRichard Du Boff, Bryn Mawr College (retired)Arindrajit Dube, University of Massachusetts, AmherstAmitava Dutt, University of Notre DameGary Dymski, University of Leeds and University of California, RiversideSusan

Dynarski , University of MichiganJames Eaton, Bridgewater College (emeritus)Peter Eaton, University of Missouri, Kansas CityJohn Edgren, Eastern Michigan UniversityRonald Ehrenberg, Cornell UniversityRick Eichhorn, Coe CollegeGreen Ekadi, Meharry Medical CollegeJustin Elardo, Portland Community College Gerald Epstein, University of Massachusetts, AmherstAzSylvia Allegretto, im Essaji, Wilfrid Laurier University Colleen Fahy, Assumption CollegeDavid Fairris, University of California, RiversideHenry Farber, Princeton UniversitySasan FayazSylvia Allegretto, manesh, California State University, FresnoRafat FazSylvia Allegretto, eli, University of RedlandsSteven FazSylvia Allegretto, zSylvia Allegretto, ari, Washington University in St. LouisRashi Fein, Harvard UniversityRobert Feinberg, American UniversitySusan Feiner, University of Southern MaineJohn Felton, University of Nebraska (emeritus)William Ferguson, Grinnell

CollegeRudy Fichtenbaum, Wright State University Alexander Field, Santa Clara UniversityDeborah M. Figart, The Richard Stockton College of New Jersey Kade Finnoff, University of Massachusetts, Boston Peter Fisher, University of Iowa (emeritus)John FitzSylvia Allegretto, gerald, Bowdoin CollegeSean Flaherty, Franklin and Marshall CollegeKenneth Flamm, University of Texas, AustinMaria Floro, American University Frederick Floss, Buffalo State College 7 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Nancy Folbre, University of Massachusetts, Amherst Gary Francis, California State University, ChicoDouglas

Frank, Allegheny CollegeRobert Frank, Cornell UniversityRichard Freeman, Harvard UniversityGerald Friedman, University of Massachusetts, AmherstAlan Frishman, Hobart and William Smith CollegesJames Galbraith, University of Texas, AustinDavid Gallo, California State University, ChicoJohn Gallup, Portland State UniversityEmma Garcia, Economic Policy Institute Irwin Garfinkel, Columbia UniversityChristophre Georges, Hamilton CollegeTeresa Ghilarducci, The New School for Social ResearchRezSylvia Allegretto, a Ghorashi, Stockton CollegeLisa Giddings, University of Wisconsin, La CrosseRichard Gilbert, University of California, BerkeleyAlan Gin, University of San DiegoNorman Glickman, Rutgers UniversityDavid Gold, The New SchoolJohn Golden, Allegheny CollegeLonnie Golden, Pennsylvania State University, Abington Claudia Goldin, Harvard University

+ Steven Goldman, University of California, Berkeley Don Goldstein, Allegheny CollegeFidel GonzSylvia Allegretto, alezSylvia Allegretto, , Sam Houston State UniversityJesus GonzSylvia Allegretto, alo, Universidad Carlos III de MadridNeva Goodwin, Tufts UniversityRobert Gordon, Northwestern UniversityElise Gould, Economic Policy Institute Harvey Gram, Queens College, City University of New YorkUlla Grapard, Colgate UniversityDaphne Greenwood, University of Colorado, Colorado SpringsRicardo Grinspun, York University, Toronto Heather Grob, Saint Martins UniversityW. Norton Grubb, University of California, BerkeleyChristopher Gunn, Hobart and William Smith CollegesRobert Guttmann, Hofstra UniversityDarrick Hamilton, The New SchoolJoseph Harris, State University of New York, College at Old Westbury (emeritus)Douglas

Harris, Tulane UniversityHeidi Hartmann, Institute for Womens Policy Research and George Washington University 8 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Mitchell HarwitzSylvia Allegretto, , University at BuffaloBaban Hasnat, State University of New York, BrockportRobert Haveman, University of Wisconsin, MadisonCarol Heim, University of Massachusetts, AmherstJohn Henry, University of Missouri, Kansas CityFelix HernandezSylvia Allegretto, , Queens College, City University of New YorkConrad Herold, Hofstra UniversityAdam Hersh, Center for American ProgressStephen HerzSylvia Allegretto, enberg, Keystone

Research CenterDonald Hester, University of Wisconsin, MadisonDavid Hewitt, Whittier College Michael Hillard, University of Southern MaineRal Hinojosa-Ojeda, University of California, Los AngelesP. Sai-wing Ho, University of DenverGeoffrey Hodgson, University of HertfordshireEmily Hoffman, Western Michigan UniversityMichelle Holder, Community Service Society of New YorkStephen Holland, University of North Carolina, GreensboroHarry HolzSylvia Allegretto, er, Georgetown UniversityChristina Houseworth, Hobart and William Smith CollegesDavid Howell, The New SchoolCandace Howes, Connecticut CollegeDavid Huffman, Bridgewater College Thomas Hungerford, Economic Policy InstituteE. K. Hunt, University of Utah Michael Hutchison, University of California, Santa CruzSylvia Allegretto, Saul Hymans, University of MichiganFrederick

Inaba, Washington State UniversityDorene Isenberg, University of RedlandsSarah Jacobson, Williams CollegeSanford Jacoby, University of California, Los AngelesDavid Jaeger, City University of New York Graduate CenterKenneth Jameson, University of UtahRussell Janis, University of Massachusetts, AmherstMarc Jarsulic, Center for American ProgressElizSylvia Allegretto, abeth Jensen, Hamilton CollegeTae-Hee Jo, State University of New York, Buffalo StateJerome Joffe, St. Johns University (retired)William Johnson, ArizSylvia Allegretto, ona State UniversityJon Jonakin, Tennessee Technological University (emeritus)Barbara Jones, Alabama A&M UniversityDerek Jones, Hamilton CollegeHelene Jorgensen, Economic ConsultantAllison Kaminaga, Stonehill CollegeJ. K. Kapler, University of Massachusetts, Boston

9 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Peter Karl Kresl, Bucknell UniversityHarry KatzSylvia Allegretto, , Cornell UniversityLawrence KatzSylvia Allegretto, , Harvard UniversityRoger Kaufman, Smith CollegeDavid Kaun, University of California, Santa CruzSylvia Allegretto, Mark KazSylvia Allegretto, arosian, Stonehill College and Boston CollegeMelissa Kearney, University of MarylandDaphne Kenyon, D. A. Kenyon & AssociatesValerie Kepner, Kings CollegeHaider Khan, University of DenverJaewhan Kim, University of Utah Mary King, Portland State UniversityChristopher King, University of Texas, AustinMarieka Klawitter, University of WashingtonLori KletzSylvia Allegretto, er, Colby CollegeJanet Knoedler, Bucknell UniversityThomas Kochan,

Massachusetts Institute of TechnologyTimothy Koechlin, Vassar CollegeAndrew Kohen, James Madison UniversityEbru Kongar, Dickinson College David KotzSylvia Allegretto, , University of Massachusetts, AmherstDan Kovenock, Chapman University Philip KozSylvia Allegretto, el, Rollins CollegeBrent Kramer, City University of New York Kate Krause, University of New MexicoAlan Krupnick, Resources for the FutureAdriana Kugler, Georgetown UniversityEdith Kuiper, State University of New York, New PaltzSylvia Allegretto, Dr. R. Shashi Kumar Kumar, Bangalore UniversityFidan Ana Kurtulus, University of Massachusetts, Amherst Sumner La Croix, University of HawaiiDavid Laibman, Brooklyn College, City University of New York (emeritus)Melaku Lakew, Richard Stockton College of New JerseyAndrew Larkin, St. Cloud State University (emeritus)Gary Latanich, Arkansas

State UniversityWilliam LazSylvia Allegretto, onick, University of MassachusettsRonald Lee, University of California, BerkeleyFrederic Lee, University of Missouri, Kansas CityThomas Legg, University of Minnesota Brandon Lehr, Occidental CollegePaul Leigh, University of California, DavisCharles Levenstein, University of Massachusetts, LowellMargaret Levenstein, University of MichiganHenry Levin, Columbia UniversityMark Levinson, SEIUOren Levin-Waldman, Metropolitan College of New York 10 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Frank Levy, Massachusetts Institute of Technology

Arthur Lewbel, Boston CollegeDavid Lindauer, Wellesley CollegeSusan LinzSylvia Allegretto, , Michigan State University Victor Lippit, University of California, RiversideDavid Lipsky, Cornell UniversityPaul Lockard, Black Hawk College and Economic History AssociationMark Long, University of WashingtonMary LopezSylvia Allegretto, , Occidental CollegeDaniel Luria, Michigan Manufacturing Technology CenterNora Lustig, Tulane UniversityDevon Lynch, University of Masschusetts, DartmouthRobert Lynch, Washington CollegeLisa Lynch, Brandeis UniversityFrank Lysy, World Bank (retired)Arthur MacEwan, University of Massachusetts, BostonJohn MacLennan, American Society for Public Administration Allan MacNeill, Webster UniversityCraig MacPhee, University of Nebraska, LincolnDiane Macunovich, University of RedlandsMark Maier, Glendale Community CollegeBernard Malamud, University of Nevada, Las Vegas

Julianne Malveaux, Bennett College (former president)Don Mar, San Francisco State University Ann Markusen, University of MinnesotaLawrence Marsh, University of Notre DameRay Marshall, University of Texas, Austin John MartinezSylvia Allegretto, , Midwestern State University Alexandre Mas, Princeton UniversityEric Maskin, * Harvard University Patrick L. Mason, Florida State UniversityAndrew Mason, University of Hawaii, ManoaThomas Masterson, Bard CollegeGabriel Mathy, American UniversityJulie Matthaei, Wellesley CollegePeter Hans Matthews, Middlebury CollegeAnn Mari May, University of NebraskaAnne Mayhew, University of TennesseeRoberto

MazSylvia Allegretto, zSylvia Allegretto, oleni, Hofstra UniversityElaine McCrate, University of VermontSusan McElroy, University of Texas, DallasRichard McGahey, The New School Richard McGregory, University of Wisconsin, WhitewaterRichard McIntyre, University of Rhode IslandJo Beth Mertens, Hobart and William Smith Colleges 11 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Peter Meyer, The E.P. Systems Group, Inc.Douglas Meyer, UAWPeter Meyer, University of the Pacific William Milberg, The New SchoolAshley Miller, Mount Holyoke CollegeJohn Miller, Wheaton CollegeRonald

Mincy, Columbia UniversityJerry Miner, Syracuse UniversityLawrence Mishel, Economic Policy Institute John Mondejar, U.S. Federal GovernmentEdward Montgomery, Georgetown UniversityMark Montgomery, Stony Brook UniversityRobert Moore, Georgia State UniversityMargaret Morgan-Davie, Hamilton College Monique Morrissey, Economic Policy InstituteFred Moseley, Mount Holyoke CollegePhilip Moss, University of Massachusetts, LowellEshragh Motahar, Union CollegeAkira Motomura, Stonehill CollegeTracy Mott, University of DenverCatherine P. Mulder, John Jay College of Criminal Justice, City University of New York Kranti Mulik, Union of Concerned ScientistsAlicia Munnell, Boston Colleg Richard Murnane, Harvard UniversityMichael Murray, Bates CollegeMarta Murray-Close, University of Massachusetts, AmherstEllen Mutari,

Richard Stockton College of New JerseySamuel Myers, University of MinnesotaSirisha Naidu, Wright State UniversityMichele Naples, The College of New JerseyJulie Nelson, University of Massachusetts, BostonYeva Nersisyan, Franklin and Marshall CollegeReynold Nesiba, Augustana College (South Dakota)Zohreh Niknia , Mills CollegeEric Nilsson, California State University, San BernardinoRoger Noll, Stanford University Abdullah Noman, Nicholls State UniversityNathan Nunn, Harvard UniversityMichael Nuwer, State University of New York, PotsdamSeamus OCleireacain, Columbia UniversityCarol OCleireacain, Economic ConsultantJeffrey OHara, Union of Concerned ScientistsErik Olsen, University of Missouri, Kansas CityPaulette Olson, Wright State UniversityPaul Ong, University of California, Los Angeles

12 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Paul Osterman, Massachusetts Institute of Technology Rudolph Oswald, AFL-CIO (retired)OzSylvia Allegretto, ay OzSylvia Allegretto, ge, Dickinson CollegeBora OzSylvia Allegretto, kan, Tulane UniversityAaron Pacitti, Siena CollegeSpencer Pack, Connecticut CollegeDimitri Papadimitriou, Bard CollegeJairo Parada, Universidad del NorteElliott Parker, University of Nevada, RenoJames Parrott, Fiscal Policy Institute Manuel Pastor, University of Southern California Jennifer Pate, Loyola Marymount UniversityEva Paus, Mount Holyoke CollegeAnita Pena, Colorado State UniversityMichael Perelman, California State University,

ChicoJoseph Persky, University of Illinois, Chicago Karen Pfeifer, Smith College (emerita)Peter Philips, University of UtahBruce Pietrykowski, University of Michigan, Dearborn Chiara Piovani, University of DenverDavid Plante, Western State Colorado UniversityMary Kay Plantes, Plantes Company, LLCJeffrey Pliskin, Hamilton College Robert Plotnick, University of WashingtonKaren Rosel Polenske, Massachusetts Institute of TechnologyRobert Pollin, University of Massachusetts, AmherstMark Price, Keystone Research CenterKevin Quinn, Bowling Green State UniversityCodrina Rada, University of UtahSteven Radelet, Georgetown UniversityFredric Raines, Washington University in St. LouisDavid Ramsey, Illinois State University (retired)Steven Raphael, University of California, BerkeleyWendy Rayack,

Wesleyan UniversityJames RebitzSylvia Allegretto, er, Boston UniversityMike Reed, University of Nevada, Reno Michael Reich, University of California, Berkeley Robert Reich, University of California, Berkeley Siobhan Reilly, Mills CollegeCordelia Reimers, Hunter College, City University of New York Graduate CenterStephen Reynolds, University of UtahDonald Richards, Indiana State UniversityPhilip Robins, University of MiamiMichael Robinson, Mount Holyoke CollegeMalcolm Robinson, Thomas More College 13 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president

Charles Rock, Rollins CollegeWilliam Rodgers, Rutgers UniversityDani Rodrik, Institute for Advanced Study John Roemer, Yale UniversityFrank Roosevelt, Metropolitan College of New YorkSamuel Rosenberg, Roosevelt UniversityJoshua Rosenbloom, University of KansasStuart Rosewarne, University of SydneySergio Rossi, University of FribourgRoy Rotheim, Skidmore CollegeJesse Rothstein, University of California, BerkeleyCecilia Rouse, Princeton UniversityDavid F. Ruccio, University of Notre DameJeffrey Sachs, Columbia UniversityEmmanuel SaezSylvia Allegretto, , University of California, BerkeleyHctor SezSylvia Allegretto, , Holy Names UniversityGregory SaltzSylvia Allegretto, man, Albion CollegeIsabel Sawhill, Brookings InstitutionPeter Schaeffer, West Virginia UniversityWilliam Schaniel, University of West *+

GeorgiaThomas Schelling, University of Maryland Ted Schmidt, State University of New York, Buffalo State Stephen Schmidt, Union CollegeJohn Schmitt, Center for Economic and Policy ResearchGeoffrey Schneider, Bucknell UniversityJuliet Schor, Boston CollegeAmy SchwartzSylvia Allegretto, , New York UniversityElliott Sclar, Columbia UniversityJason Scorse, Monterey InstituteRobert E. Scott, Economic Policy Institute Ian Seda-IrizSylvia Allegretto, arry, John Jay College of Criminal Justice, City University of New YorkStephanie Seguino, University of VermontRenata Serra, University of FloridaMohamad Shaaf, University of Central OklahomaJean Shackelford, Bucknell University (emerita)Harley Shaiken, University of California, BerkeleyDavid Shapiro, Pennsylvania State UniversityRobert Shapiro, Georgetown

UniversityRajiv Sharma, Portland State University Dennis Shea, Pennsylvania State UniversityHeidi ShierholzSylvia Allegretto, , Economic Policy InstituteLara ShoreSheppard, Williams CollegeSteven Shulman, Colorado State UniversityNicholas Shunda, University of Redlands 14 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Laurence Shute, California State Polytechnic University, PomonaDan Sichel, Wellesley CollegePerry Singleton, Syracuse UniversityEric Sjoberg, University of Utah Curtis Skinner, National Center for Children in Poverty Peter Skott, University of MassachusettsCourtenay Slater, RetiredTimothy Smeeding, University of

Wisconsin, MadisonNiloufer Sohrabji, Simmons College Aaron Sojourner, University of MinnesotaRobert Solow, *+ Massachusetts Institute of Technology Allen Soltow, University of Tulsa (retired)Roger Sparks, Mills College * A. Michael Spence, New York University Peter Spiegler, University of Massachusetts, BostonJanet SpitzSylvia Allegretto, , The College of Saint RoseCase Sprenkle, University of Illinois, Urbana-ChampaignWilliam Spriggs, Howard University and AFL-CIOCharles Staelin, Smith CollegeBrian Staihr, University of Kansas

J. Ron Stanfield, Colorado State University (emeritus)K.C. Stanfield, DePauw UniversityMark Stephens, Tennessee Tech UniversityAnn Stevens, University of California, DavisMary Stevenson, University of Massachusetts, BostonJames Stewart, Pennsylvania State University (emeritus)Chace Stiehl, Bellevue CollegeJoseph StiglitzSylvia Allegretto, , Columbia * University Chad Stone, Center on Budget and Policy PrioritiesDiana Strassmann, Rice University Cornelia Strawser, Bernan PressMyra Strober, Stanford UniversityWoody Studenmund, Occidental CollegeDavid Sturges, Colgate UniversityTimothy Sullivan, Towson UniversityLawrence Summers, Harvard UniversityWilliam Sundstrom, Santa Clara UniversityRichard Sutch, University of California,

Riverside and BerkeleyPaul Swaim, OECDJames Swaney, Wright State University (emeritus)Sharon SzSylvia Allegretto, ymanski, State University of New York, Empire State College 15 Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Michael Taillard, Bellevue UniversityVis TarazSylvia Allegretto, , Smith CollegeLinwood Tauheed, University of Missouri, Kansas CityDaniele Tavani, Colorado State University William Taylor, New Mexico Highlands UniversityLance Taylor, The New School for Social ResearchPeter Temin, Massachusetts Institute of TechnologyDavid Terkla, University of Massachusetts, BostonRanjini

Thaver, Stetson UniversityMark Thoma, University of OregonFrank Thompson, University of Michigan Emanuel Thorne, Brooklyn College, City University of New YorkChris Tilly, University of California, Los AngelesRenee Toback, Economy ConnectionJim Tober, Marlboro CollegeMayo Toruo, California State University, San BernardinoScott Trees, Siena College Marjorie Turner, San Diego State University (emeritus) A. Dale Tussing, Syracuse UniversityEric Tymoigne, Lewis and Clark CollegeLaura Tyson, University of California, BerkeleyLynn Unruh, University of Central FloridaDavid Vail, Bowdoin College Hendrik Van den Berg, University of Nebraska, LincolnWilliam Van Lear, Belmont Abbey College Andres Vargas, Texas Tech UniversityAnn Velenchik, Wellesley CollegeEric Verhoogen, Columbia UniversityMatas Vernengo, Bucknell

UniversityPaula Voos, Rutgers UniversityJeff Waddoups, University of Nevada, Las Vegas Norman WaitzSylvia Allegretto, man, University of UtahLawrence Waldman, University of New MexicoWilliam Waller, Hobart and William Smith CollegesRobert Wassmer, California State University, Sacramento John Watkins, Westminster College (Salt Lake City) David Weiman, Barnard College and Columbia UniversityScott A. Weir, Wake Technical Community CollegeMark Weisbrot, Center for Economic and Policy ResearchCharles Weise, Gettysburg CollegeThomas Weisskopf, University of MichiganChristian Weller, University of Massachusetts, BostonSarah West, Macalester College Cathleen Whiting, Willamette University 16

Names of the 600 Economists who Signed Letter In Support of $10.10 Minimum Wage * Signifies Nobel laureate+ Signifies Has served as American Economic Association president Howard Wial, University of Illinois, ChicagoJeannette Wicks-Lim, University of Massachusetts, Amherst Charles Wilber, University of Notre DameSarah Wilhelm, SA Wilhelm ConsultingJohn Willoughby, American UniversityValerie Wilson, National Urban LeagueMargrethe Winslow, University of San Francisco Jon Wisman, American UniversityBarbara Wolfe, University of Wisconsin, MadisonEdward Wolff, New York UniversityMax Wolff, The New SchoolMarty Wolfson, University of Notre DameRossitzSylvia Allegretto, a Wooster, Portland State UniversityBrenda Wyss, Wheaton College (Massachusetts)Todd Yarbrough, Aquinas CollegeYavuzSylvia Allegretto, Yasar, University of DenverAnne Yeagle,

University of UtahLinda Wilcox Young, Southern Oregon UniversityBen Young, University of Missouri, Kansas City Helen Youngelson-Neal, Portland State UniversityCarol Zabin, University of California, BerkeleyDavid Zalewski, Providence College Paul Zarembka, State University of New York, BuffaloJames Ziliak, University of KentuckyAndrew Zimbalist, Smith CollegeJeffrey Zink, Morningside CollegeMichael Zweig, State University of New York, Stony Brook 17 Arguments Against Capitalism 18

Arguments Against Capitalism 1.Capitalism fosters income inequality. 2.The efficiency of markets fails under specific conditions. 3.Capitalism causes the exploitation and alienation of workers without capital. 19 REVIEW of the social usefulness of free markets 20 Adam Smith 1723 1790

Social usefulness of markets They serve the buyers needs. They use resources efficiently. They establish a fair price. 21 But the social usefulness of markets is undermined by monopolistic practices, in particular when companies can set or fix the price of a commodity. 22 Monopolistic practices [continued]: If the few sellers of an oligopoly can control the price,

they function as a monopoly. They then create a monopoly surplus profit and undermine the usefulness of markets. 23 Oligopolies [few sellers perhaps two, three or four sellers have more than 90% of the market share] are fairly common in the U. S. For example steel, aluminum, automobiles, gypsum, petroleum, tires, cigarettes and beer are oligopolies in the U. S. Some oligopolies in the U. S. have a long history of price fixing or setting, for example cigarettes

24 Supply and Demand Curves in an ideal market 25 Monopoly profit when price is fixed pricedemand curve Price of Diamonds Fixed priceprice

supply curve Monopoly surplus profit Quantity of diamonds 26 Example of Monopolistic Practice as occuring in the recent Great Recession as described by Michael Lewis in The Big Short If the subprime mortgage market had the slightest interest in being efficient, it would have shut down right there and then. For more than eighteen months, from mid-2005 until early 2007, there had been this growing disconnect between the price of

subprime mortgage bonds and the value of the loans underpinning them.1 1. Lewis, Michael, The Big Short, Chapter 7, The Great Treasure Hunt, p. 164. 27 Michael Lewis continues: A properly functioning market would assimilate new information into the prices of securities, the multi-trillion-dollar market in subprime mortage risk never budged. . . . It didnt matter when big mortgage lenders like Ownit and ResCap failed, or some pool of subprime loans experienced higher than expected losses. All that matters was what Goldman Sachs and Morgan Stanley decided should matter.1 1. Lewis, Michael, The Big Short, Chapter 8, The Long Quiet, p. 186.

28 Second main limitations of markets: Public Goods Competitive markets cannot effectively distribute public goods. 29 What are Public Goods? Please remember: Public goods are not goods that are owned by the public. Public goods have a specific definition as used in economics and social policy. 30

Public Goods are non-excludable and non-rivalrous. Non-excludable means that they cannot be consumed by an individual. Non-rivalrous means that each individual's consumption of the good leads to no subtractions from any other individual's consumption of that good... 31 Excludable Rivalrous NonRivalrous PRIVATE

GOODS wine, beer, milk, food in general, automobiles, clothing, CLUB GOODS Cable television, private parks, toll highways, information goods NonExcludable COMMON GOODS forests, fossil fuels, coal, water Problem: tragedy of commons

PUBLIC GOODS the air, national defense, a stable monetary system Problem: free rider problem. 1 1. This chart is adapted from the article public good in Wikipedia, downloaded March 10, 2014 from http://en.wikipedia.org/wiki/Public_good 32 Example of a public good: A lighthouse 33

QUESTION Are cinemas public goods? Satellite television? 34 Since public goods are non-excludable and non-rivalrous the invisible hand of competition does not operate on them as it does in a free market. Public goods invite the free rider problem if handled through a free market. Consequently they are delivered generally by governments and paid for through taxation. 35

The DoddFrank Wall Street Reform and Consumer Protection Act was signed into federal law by President Obama on July 21, 2010. It brought the most significant changes to financial regulation in the United States since the regulatory reform following the Great Depression. 36 QUESTION: Is the DoddFrank Wall Street Reform and Consumer Protection Act a public good? 37 Third main limitation of markets :

Negative externalities or spillovers 38 What are Negative externalities or Spillovers? 39 Negative externalities (spillovers) are social costs that are not included in the price of producing some good or service. Primary example: social costs of pollution and depletion of resources.

40 For example: Price of water per gallon For example: gallons of water drawn from a polluted source 41 Fourth (and last) limitation of the usefulness of markets: The prevalence of ignorance among buyers about a product or service

42 The prevalence of ignorance For a market to function in a socially productive way, its assumed products and services will result in consequences anticipated by a reasonable buyer. 43 Cases in automobile industry involving prevalence of ignorance. Ford Pintos (1970-1975). GM Trucks with saddle-bag gas tanks (1980s).

Ford Explorers (1990s). 44 Arguments Against Capitalism again weve covered so far #1 and #2 1.Capitalism fosters income inequality. 2.The efficiency of markets fails under specific conditions. 3.Capitalism causes the exploitation and alienation of workers without capital. 45 Arguments Against Capitalism #3: Capitalism causes the exploitation and alienation of workers, historically speaking, most influential arguments

were wielded by Karl Marx. 46 Karl Marx (1818 1883) 47 According to Marx, capitalism exploits and alienates workers in four ways: From their product, From their labor, From their humanity, From their society. Marx, Karl, Economic and Philosophic Manuscripts, 1844. 48 Alienation from their product

In capitalism, the capitalist owns the products made by workers. Workers are removed (alienated) from a sense of ownership of their work. 49 Alienation from the product. Mike Fitzgerald . . . is a laborer in a steel mill interviewed by Studs Terkel. Fitzgerald expresses the product-alienation Marx referred to: I feel like the guys who built the pyramids. Somebody built em. Somebody built the Empire State Building too. Theres hard work behind it. I would like to see a building, say the Empire State, with a footwide strip from top to bottom and the name of every bricklayer on it, the name of every electrician. So when a guy walked

by he could take his son and say, See, thats me over there on the 45th floor. I put that steel beam in . . . Everybody should have something to point to. Studs Terkel, How I Am a Worker, in Leonard Silk, ed., Capitalism: The Moving Target (New York: Quadrangle, 1974), pp. 68-9. 50 Alienation from labor. The monotony of work alienates people from a natural desire not to do the same uninteresting action over and over. Stud Turkel interviewed a college graduate Sharon Atkins who works as a receptionist in an advertising agency. She represents laboralienation: The first myth that blew up in my face is that a college education will get you a worthwhile job. I didnt look at myself as just a dumb broad at the front desk, who took phone calls and messages. I thought I was something else. The office taught me differently.

Studs Terkel, How I Am a Worker, in Leonard Silk, ed., Capitalism: The Moving Target (New York: Quadrangle, 1974), pp. 68-9. 51 Alienation from humanity. Marxs argument is that especially human goods, such as justice, truth, and beauty, are ends in themselves. Capitalism, in an effort to make everything into a commodity, such ends in themselves, and makes them into means to sell products. 52 Audi Q7 with Advanced plus package. A masterpiece with much more. 53 Pantene Time Renewal. Restores age-damaged hair.

54 BiC: Anyone can be an artist. 55 Head & Shoulder Dandruff and Scalp Care 56 Alienation from society. Marx thought that those who owned capital or the bourgeoisie would be alienated from the worker who did not own capital, the Proletariat, and vice versa. 57 The bourgeoisie are the social class that own

the means of production. They are capitalists. The Proletariat are the working class. The term originally arose from class distinctions in Rome and meant meant those people who had no wealth other than their children. 58 59 For Marx, both the capitalist class and the Proletariat depend on each other to maintain their livelihoods. But they also are aware that, in doing so, they both perpetuate social injustice and inequality. Thus they are both, in a fourth sense, alienated. They are alienated from an equitable society which has good will and friendship among its

various classes. 60 In the past three decade there is a clear widening split between the very rich, the 1 percenters and the remaining population. Some data follows. 61 downloaded 2/17/2013 from http://www.americanprogress.org/issues/economy/report/2012/05/17/11628/the-american-middle- 62 http://thesocietypages.org/graphicsociology/ 2009/05/27/champagne-glass-distribution-of-wealth/

63 http://newsregisteronline.com/?p=820 64 How equal should we be? (September 6, 2012) http://philebersole.wordpress.com/tag/distribution-of-wealth/ 65 http://hansengeorge.blogspot.com/2011/11/ distribution-of-wealth.html/ 66 According to Marx, capitalism exploits and alienates workers in four ways:

From their product, From their labor, From their humanity, From their society. Marx, Karl, Economic and Philosophic Manuscripts, 1844. 67 Question: Does the widening split between the very rich, the 1 percenters and the remaining population fit the Marxian analysis whereby capitalistic society is made up of two classes: the proletariat and the bourgeoisie? A BIG question: Where and how might the U. S. labor force be alienated from its product -- its labor

its humanity? Surely not everywhere, but where are the gravest offenses. 68

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