Principles of Political Economy - Third Edition Introduction

PUBLICATION AND LICENSE INFORMATION First Edition published online on June 12 , 2019 by University , IN 46383 Second Edition published online on October 29 , 2019 by University , IN 46383 2019 Daniel Saros Principles Economy by Daniel Saros is licensed under a Creative Commons International License , except where otherwise noted . Any instructor may adopt this textbook for a course . If you choose to adopt it , please notify the author at . This textbook is an open educational resource ( OER ) For more information about , please visit The vision for the cover was developed by Michael Saros . The three images used to produce the cover for the book are from

. SAROS Vector Designed By Nicolas Perez from a Vector Designed By from a Vector Designed By IL from a DEDICATION FOR MARTIN MY FRIEND AND TEACHER ABOUT THE AUTHOR Daniel Saros is a Professor of Economics at University , where he has been a member of the faculty since 2004 . He received his . in Economics at Bowling Green State University in 1999 , and his MA in Economics in 2001 and in Economics in 2004 from the University of Notre Dame . He served as the Director of the International Economics and Finance Master of Science Program from 2012 to 2013 and as the Chair of the Department of Economics from 2014 to 2018 at University . He also served as a member of the Editorial Board of the Review of Radical Political Economics from . Saros has published two books with , including Information Technology and Socialist Construction The End of Capital and the Transition to Socialism ( 2014 ) and Labor , Industry , and Regulation during the Progressive Era ( 2009 ) He has also published articles in the Review of Radical Political Economics and the journal of Economic Education . His teaching interests include money and banking , the history of economic thought , and economic theory . His primary research include schools of economic thought and methodology , economic education , and economic history .

PREFACE TO THE FIRST EDITION This textbook is unique among economics textbooks . It contains many of the same topics as mainstream textbooks , but it includes and takes very seriously heterodox critiques and alternatives to the mainstream approach to economics . It includes a whole range of alternative theories , including , Austrian , radical , feminist , institutionalist , and other approaches . The purpose is to teach students about alternative schools of economic thought but also to deepen their understanding of the dominant , neoclassical approach to economics . In this sense , it draws a great deal of inspiration from Richard and Stephen Contending Economic Theories . Following and , an even broader objective is to teach students that economics is a discourse and that no single voice can rightfully claim to have a monopoly on the truth about economics . A final objective is to make available this material at no cost to students . Because of the high price of attending American colleges and universities , I have decided to do my small part to make higher education more affordable . Therefore , the is available for free to students . Students who desire a hard copy can use a service to print one . The approach of this textbook was developed over a period of fifteen years , during which I have been teaching economics at University , and three and a half

XVi DANIEL SAROS years prior to that time when I was a graduate teaching assistant at the University of Notre Dame . I owe a great debt to certain professors at Notre Dame , who helped me develop my pedagogical approach , including , Philip , David , Sent , and Martin . Instructors at Bowling Green State University , who helped place me on a path towards the teaching of heterodox economics , include Neil , Kevin Quinn , and Steve . I had many other excellent instructors at both institutions , but these instructors stand out as major with respect to heterodox economics instruction . Regarding neoclassical economics instruction , john is my most important . His outstanding intermediate course prepared me for so much of what I encountered in graduate school that I owe him a great debt . His impact on me is surely present throughout the part of this textbook . I feel the need to mention and Jaime when I consider how much I learned about mainstream in their graduate classes and as a teaching assistant for . I would also like to recognize Kali Rath from whom I learned much about neoclassical theory . Mary Ellen Benedict also taught me a great deal about econometrics , but this knowledge plays less of a role in this book . The standard practice as it relates to the writing of economics textbooks is to only cite sources when the knowledge is not regarded as common knowledge in the profession . When concepts and ideas appear in many textbooks without citation , I have not included detailed

PRINCIPLES references . Obvious examples include the production possibilities model and the supply and demand model . Nevertheless , several textbooks have me the most over the years and have my understanding of neoclassical economic models . These textbooks include Foundations of Economics by Robin Bade and Michael Parkin , International Economics by Robert , Core Economics by Eric Chiang , Managerial Economics by Paul , Philip . Young , and Stephen , Economics by Campbell and Stanley , The Economics of Money , Banking , Financial Markets by Frederic , Principles of Economics by College , and Economics by Paul and William . These authors taught me a great deal during my time as a student and as an instructor . Even though all the economic concepts presented can be found in multiple textbooks , I have chosen to include more citations of textbook authors than is typically the case to acknowledge the contribution of these authors to my own economics education . When authors are cited , I do not include complete bibliographic information each time I cite them in the book . Instead , I only include the authors name and the year of publication in chapter throughout the book . A list of references appears at the end of this textbook so that the interested reader can see the full bibliographic information for any of the sources mentioned in the chapter . This approach greatly limits the amount of information that appears in and makes the textbook easier to read . Complete information is provided in the for some sources cited in the book , including news articles , data sources , and references where permissions were required to include the information . Because I remember where I first encountered specific

DANIEL SAROS topics , I have taken care to mention the sources when possible . Frequently the sources are textbooks , but sometimes the sources are lectures that I remember from my days as a student . I have included such references whenever possible . In terms of mathematics , I have tried to include every step in the solutions to quantitative problems throughout the book so that students need not fill in the blanks themselves . I have also tried to include all the mainstream concepts and models that typically appear in economics textbooks so that heterodox economics instructors should not feel the need to supplement the textbook with a mainstream textbook . Daniel Saros , Indiana March 13 , 2019 ( Updated on October 20 , 2019 )

PREFACE TO THE SECOND EDITION When the First Edition appeared online 12 , 2019 , it represented six years of work . I faced significant challenges as I wrote the book , but one of the greatest challenges was obtaining permissions from publishers to use copyrighted material in an open access , online format . Most publishers that I contacted were willing to grant permissions either for free or for a fee . I am very grateful to everyone who granted permission and made this difficult project possible . Because of the many permissions required , I was not able to focus on updates in the First Edition and so many of the news articles that were cited in that edition were several years old . I made the decision to block access to the textbook on September , 2019 to update the Following the Economic News sections that appear at the end of each chapter . The Second Edition thus has been updated to include news items from the past 13 months . The text of each of the 20 chapters has not been altered since the publication of the First Edition on June 12 , 2019 , except for the updates to the 20 Following the Economic News sections at the end of each chapter . I have not published the material from the First Edition or Second Edition anywhere , except on my webpage ( my Selected Works webpage

DANIEL SAROS ( and the website ( I have no intention of publishing the book anywhere else , although links to the book may be found on several websites . My Word files for the First Edition and the Second Edition , with completion dates indicated at the end of the textbook , are available upon request to anyone who would like to verify my original authorship of this work . These files are also part of the permanent record of the University Christopher Center for Library and Information Resources . Daniel Saros October 20 , 2019