PHI THETA KAPPA

What role does economic policy play in the paradox of affluence?

Study Questions

1. To what extent is it a paradox that the most affluent nations in the world do not produce anything from scratch and trade for much of what they have?
2. What is the relationship between affluence and embargoes?
3. To what extent does a pro-business economic policy have an impact on the affluence of the average citizen?
4. Compare the economic policies and prosperity of emerging markets since the 1970s. (examples: China, Ireland, India)
5. To what extent do affluent people support the economic policies of the Republican, Democratic, and Libertarian parties? What is the difference between the stated economic policies and the practice of these policies for each of these parties?
6. How does immigration shape and reflect people’s perceptions of affluence?
7. How has the changing economic policy of China affected the affluence of the average Chinese person? How does China’s increased affluence affect the rest of the world?
8. What has done more to create affluence: Wal-Mart or the War on Poverty?
9. To what extent is American affluence dependent upon borrowing funds from other nations?
10. What are the by-products of America’s investment in global affluence?
11. To what extent has micro-lending revolutionized the development of affluence in developing nations? To what degree does this highlight the challenges faced by developed nations and the World Bank?
12. How will affluent nations with aging populations and low birth rates sustain entitlements?
13. To what extent does a provision for collective bargaining affect affluence?

Honors in Action

Project description: Invite Republican, Democratic, and Libertarian leaders and candidates to speak on campus about their economic policies and visions for the future of the nation. Ask them to discuss issues related to the environment. Compare the official party platforms with the leaders’ answers. What can you learn about the paradox of affluence and about leading with conviction from your research? Develop a plan to educate voters about issues related to Operation Green. Hallmarks addressed: Scholarship, Leadership, Service, Fellowship

Project description: Research the per capita GDPs (Gross Domestic Product) of Japan and Argentina and/or the United States and Great Britain circa 1900-2007. Examine attitudes, culture, leadership, and trade policies for each nation. How did the GDP for each nation change over that time period? How can you explain the difference in growth rates? Organize and host a college and community forum for which professors of economics and political science discuss how affluence is reflected in each of these cultures. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Research how much money is spent on litter cleanup in your city, county and state. Get the word out about how much litter costs - money spent on litter cleanup is money not available for other priorities such as education, roadways, public safety, etc. Volunteer to help with litter prevention and cleanup efforts. Hallmarks addressed: Scholarship, Leadership, Service, Fellowship

Project description: Host members of your college community for an Honors Satellite Seminar on the paradox of affluence as it relates to economic policy. Invite chapter members to work in teams with faculty members to facilitate a series of discussions following the seminar broadcast. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Using Upton Sinclair’s The Jungle as a 20th century example describing the reasons workers sought to collectively bargain, but failed, and the leadership of Cesar Chavez* to organize migrant farm workers in California as a 20th century successful example, explore the importance of leadership for improving work conditions for the less affluent. Compare this earlier labor leadership with present-day union leadership. Hallmarks addressed: Scholarship, Leadership

Project description: Examine the policy debates concerning outsourcing and/or immigration. What are the economic concerns of the parties in the debate(s)? Is the affluence of employers or the affluence of employees driving the debate(s)? Make and promote a presentation on immigration policy options and invite a politician, an economist, and a historian to form a panel to field questions from the community about the options. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Research the Easterlin Paradox. Invite a psychology professor to a chapter meeting to explain the paradox using the adaptation-set point hypothesis, the aspiration adjustment hypothesis, and the absolute effect hypothesis. How does your research reflect each of these hypotheses? Share your work in an article for your college’s newspaper. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Research the effects on health of pollution that results from rising affluence. How have the interests of economic growth, public health, and environmental concerns collided in areas with harmful pollution? Did the affluence of a community affect the outcome? Did the leaders seeking to improve public health and accountability for the pollution come from “inside the system” or outside of it? How did the solutions balance the economic needs and the health concerns of the community? Is there a polluted area in your community that is known to have health repercussions, or might be impacting health of the people living there? Contact individuals or groups whom the chapter could work with to alleviate the effects of the pollution on the public’s health. Hallmarks addressed: Scholarship, Leadership, Service, Fellowship

Project description: Research the impact of economic policy on the elderly or disabled in your community. Based on your research, locate a community member who needs assistance. Volunteer to help paint, fix-up, or green-up an elderly or disabled person’s home. Hallmarks addressed: Scholarship, Leadership, Service, Fellowship

Project description: Host a reading and campus dialogue about The New Americans by Ruben Martinez and Joseph Rodriguez. Afterwards, interview your family members about their ethnic and economic backgrounds. Compare and contrast your findings to those discussed in The New Americans. Chart your family’s economic position and compare it to the hypothetical model that Martinez and Rodriguez use to suggest where different ethnic groups should fall. Do you notice any paradoxes of affluence in your findings? Come back together as a chapter to discuss your findings. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Organize a National Issues Forum (www.nifi.org/) and formal debate around the issues raised in Keith Melville’s Pocketbook Pressures: Who Benefits from Economic Growth? (1995). Determine the effects of Wal-Mart and other chain stores and restaurants on the affluence of your town and the global community, and share your results by hosting a brown bag luncheon dialogue. Hallmarks addressed: Scholarship, Leadership, Fellowship

Project description: Go to a local middle or elementary school social studies class. Work with teachers at the school to organize a mock investment simulation with students. Give each student an amount of play money to invest for a semester. Using www.howthemarketworks.com, help students develop their stock portfolios and chart their successes and failures. Present the student who, at the end of the semester, has the most money and strongest explanation for how she invested her money, a certificate of merit from your Phi Theta Kappa chapter. Hallmarks addressed: Scholarship, Leadership, Fellowship

Bibliography

Brooks, Arthur. Who Really Cares: The Surprising Truth About Compassionate Conservatism — America’s Charity Divide — Who Gives, Who Doesn’t, and Why it Matters. 2007.

Brooks examines the myths about charitable giving in the United States and the forces behind that giving. He argues charitable giving is crucial for a sustained affluent society.

Harford, Tim. The Undercover Economist: Exposing Why the Rich are Rich, Why the Poor are Poor–and Why You Can Never Buy a Decent Used Car! 2005.

Harford investigates the connection between free market theory and free market forces to demystify such contemporary forces as Starbucks’ pricing system, high rents in London, Microsoft’s stock values, and Chinese sweatshops.

Harvey, David. Spaces of Global Capitalism: A Theory of Uneven Geographical Development. 2006.

Harvey looks at policies of the 1980s and 1990s and the turn towards neo-liberalism that together have led to current economic problems and opportunities in China, Latin America, and elsewhere. Harvey argues the main paradox of neo-liberalism is it does not result in fairly-distributed economic growth. Harvey also discusses and debunks the notion that “backwards” countries need to “catch up,” and how policies based on this notion have done more harm than good in aiding development.

Landsburg, Steven E. The Armchair Economist: Economics & Everyday Life. 1995, and More Sex is Safer Sex: The Unconventional Wisdom of Economics. 2007.

Landsburg looks at everyday economic behavior to explain such things as executive salaries, ticket prices for rock concerts, movie popcorn prices, racial profiling, looting at Baghdad’s museums, and safe sex.

Levitt, Steven and Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. 2007 revised and expanded edition.

Levitt and Dubner explore the mysteries of everyday life to show they are not so mysterious after all. They investigate the hidden side of everything, including such disparate issues as violent crime, incentives, perfect parenting, naming practices, abortion, and drug-related gangs.

Lindsey, Brink. The Age of Abundance: How Prosperity Transformed America’s Politics and Culture. 2007.

Lindsey investigates pessimism in contemporary culture despite the relative affluence of the average American. He looks at consumerism in the United States and at Americans’ affluence when compared to the global community.

McCraw, Thomas K. Prophet of Innovation: Joseph Schumpeter and Creative Destruction. 2007.

McCraw paints a picture of Schumpeter, the man John Kenneth Galbraith called “the most sophisticated conservative” of the 20th century. Schumpeter represents both the innovative ideas that lead to affluence and the qualities of a charismatic leader.

* material is included in Phi Theta Kappa Leadership Development Studies: A Humanities Approach. This book is available online at www.ptk.org/recognitions/catalog/.