FIN 1960 - FINANCIAL INEQUALITY IN AMERICA

credits: 3.0
Crosslisted/Same As: ECO 1960
ECO 1960-FIN 1960. Discusses the state of financial inequality in America today. The course is built on the work of Joseph Stiglitz (Nobel prize-winning economist) and Robert Reich (former Secretary of Labor and currently Professor of Public Policy at the University of California at Berkley). Students will read about and discuss the sources of financial inequality in today’s economy, the effects financial inequality is having on the middle class and the poor, and possible ways we can change the direction in which the economy is headed. Finance majors in particular will learn how the stock market’s performance has been transformed in favor of the wealthy. This course qualifies for the Western Perspective requirement. Objectives: A) Describe the extent of the inequality of wealth and income; B) Explain the impact of rent seeking on financial inequality; C) Explain how market forces have shaped the state of financial inequality; D) Explain how Wall Street’s efforts for profit maximization have been at the expense of the middle class; E) Explain how financial inequality impacts the economy as a whole and the middle class in particular; F) Explain how the forces that drive financial inequality are undermining the democratic political processes; G) Explain how the forces that drive financial inequality are eroding the rule of law; H) Describe potential methods to reform the economy to reverse the effects of financial inequality. Method of Instruction: Lecture, classroom discussion, a term paper, and student research on current statistics. Method of Evaluation: Updating of textbook statistics 25%, Term paper 25%, Exams (two @ 25%) 50%. Meets *WEP Distribution Requirements.