HISTORY 4000-101:

Financing Wars

Spring 2012

Dr. Jari Eloranta

Associate Professor of Comparative Economic and Business History

Appalachian State University, Department of History

Office: Anne Belk Hall 1076 (Office hours: Tuesdays 1-3 pm in person; by email or appointment, Thursdays 11 am – 5 pm)

Phone: 262-6006

E-mail: elorantaj@appstate.edu

http://www.appstate.edu/~elorantaj

Assistant: Jason Houser (jh63964@email.appstate.edu)

Course description:

How much do wars cost? Who finances them? How is this done? This course explores the economic dimensions of wars - namely how wars, from the Early Modern period up until today, have been financed and how much they have cost. Here in this course I will emphasize the interaction between empirical facets, including several case studies from various wars, and interdisciplinary theories. The interaction between the rich countries and the rest, as well as other geographic differences between regions, is scrutinized to assess the degree to which economic success correlates with military success. Also, special emphasis will be based on the analysis of government spending patterns and the economic (and other) impacts of conflicts.

Teaching Format: lectures, readings, and workshop meetings (including debates)

Schedule: HIS 4000-101:     MWF 12-12:50 (Room 17, Anne Belk Hall) 

Course Resources:

Syllabus (full); Etiquette; Essays and Debates

Course Schedule:

-January 18: Introduction to the Class

-January 20: Using Sources and Other Materials; Writing Essays

Readings:

*Using sources: http://www.northpark.edu/history/Classes/Basics/UsingSources.html

*General advice on essay writing: http://www.utoronto.ca/writing/advise.html; http://webster.commnet.edu/mla/index.shtml. On referencing, see http://www.library.appstate.edu/tutorial/citing/citing.html.

-January 23: Theories 1: Comparative History of Nation States

Readings:

*Webber-Wildawsky 1986, Chapter 1.

*Tilly, Charles, Coercion, Capital, and European States, AD 990—1990. Basil Blackwell: Cambridge, Mass., 1990, Chapter 2 (electronic reserve).

-January 25: Theories 2: Causes of Wars

            Readings:

*Levy, Jack S., ‘Theories of General War’. World Politics, Vol. 37, No. 3. (Apr., 1985), pp. 344-374 (available from: www.jstor.org).

*Fearon, James D., ‘Rationalist Explanations for War’. International Organization, Vol. 49, No. 3. (Summer, 1995), pp. 379-414 (available from: www.jstor.org).

-January 27: Theories 3: Military Spending in the Long Run; Defense Economics

            Readings:

*Eloranta, Jari. "Military Spending Patterns in History". EH.Net Encyclopedia, edited by Robert Whaples. September 27, 2005. URL: http://eh.net/encyclopedia/article/eloranta.military

*A Short Primer on Defense Economics: http://www.google.com/url?sa=t&rct=j&q=short%20intro%20to%20defense%20economics&source=web&cd=4&ved=0CDUQFjAD&url=https%3A%2F%2Fwww.defenseinstitutionbuilding.org%2Fsystem%2Ffiles%2FHartley%2520-%2520Sandler%2520-%2520Handbook%2520Defense%2520Economics%2520-%2520ENG.pdf&ei=uL0UT_vGKpTdtwe90vnYCw&usg=AFQjCNHed9GsylH4x0nTX0Ve28eNrmvb2g

*Statistical sources on military spending:http://www.globalissues.org/article/75/world-military-spending - after perusing some of the sites, answer the following questions: 1) What problems do these statistical series suffer from? 2) How would this influence decision-makers in general?

-January 30: Theories 4: From Micro to Macro – Individuals to Systems

            Readings:

*Eloranta, Jari. "Military Spending Patterns in History". EH.Net Encyclopedia, edited by Robert Whaples. September 27, 2005. URL: http://eh.net/encyclopedia/article/eloranta.military (re-read especially the introductory part!)

-February 1: Foundations of the “European Economic Miracle”: North Italian City States, Institutions, and Gunpowder

            Readings:

*Maddison, Angus, The World Economy: Millennial Perspective. Paris 2001, Chapter 1 (http://www.eco.rug.nl/~Maddison/other_books/Ch.1_2001.pdf).  

            * Webber-Wildawsky 1986, Chapter 5.

*Greif, Avner, Paul Milgrom & Barry R. Weingast, ‘Coordination, Commitment, and Enforcement: The Case of the Merchant Guild”. The Journal of Political Economy, Vol. 102, No. 4 (Aug. 1994), pp. 745-776. (available from: www.jstor.org)

-February 3: Theory 5: Early Modern Fiscal States

            Readings:

*Bonney 1999, Introduction (electronic reserve)

*Eloranta, Jari, Review of Bonney 1999 (http://www.cc.jyu.fi/~mirator/pdf/Bonney.pdf)   

-February 3: Case 1: Early Modern Spain

            Readings:

*Kellenbenz, Hermann, ‘The Impact of Growth on Government: The Example of Spain’. The Journal of Economic History, Vol. 27, No. 3 (Sept., 1967), pp. 340-362 (available from: www.jstor.org)

-Discussion leaders:  ENTIRE CLASS

-February 6: Case 2: Early Modern England

            Readings:

*Harris, Gerald, ‘Political Society and the Growth of Government in Late Medieval England’. Past and Present, No. 138 (Feb., 1993), pp. 28-58 (available from: www.jstor.org).

*Webber-Wildawsky 1986, Chapter 5.

-Discussion leaders: Lauren Dale, Dwight Miller

-February 8: Case 3: Early Modern France

            Readings:

            *Bonney 1999, Chapter 4 (electronic reserve)

            *Webber-Wildawsky 1986, Chapter 5.

-Discussion leaders:  ENTIRE CLASS

-February 10: Guest Lecture: Mr. Matthew Holloway: State and Money

-February 13: The Thirty Years’ War and the Rise of Financial Superpowers

            Readings:

*Kamen, Henry, ‘The Economic and Social Consequences of the Thirty Years' War’. Past and Present, No. 39. (Apr., 1968), pp. 44-61 (available from: www.jstor.org)

*North, Douglass C. & Barry R. Weingast, ‘Constitutions and Commitment: The Evolution of Institutional Governing Public Choice in Seventeenth-Century England’. The Journal of Economic History, Vol. 49, No. 4 (Dec., 1989), pp. 803-832 (available from: www.jstor.org)

-Discussion leaders: Jeremy Hachen, Katherine Mansfield, Kelly Kitson

-February 15: Tutorial on digital resources at the ASU Library (location: Library

room 024), tutorial with history reference librarian Betsy Williams. (to be confirmed later)

-February 17: Debate 1 (all debates coordinated and graded by Mr. Jason Houser)

-February 20: Debate 2

-February 22: Theory 6: Public Debt

            Readings:

            *Ferguson 2001, Sections 1 and 2.

-February 24: Case 4: The British Model

            Readings:

            *Ferguson 2001, Sections 1 and 2.

            *Webber-Wildawsky 1986, Chapters 5 and 6.

-Discussion leaders: ENTIRE CLASS

- February 27: Theory 7: Total War and Its Applications

            Readings:

*von Clausewitz, Carl, On War. Penguin Classics Reissue. London 1968, Chapter 1, pp. 101-121 (electronic reserve).

*Janda, Lance, ‘Shutting the Gates of Mercy: The American Origins of Total War, 1860-1880’. The Journal of Military History, Vol. 59, No. 1. (Jan., 1995), pp. 7-26 (available from: www.jstor.org).

- February 29: Debate 3

-March 2: Napoleonic Wars

            Readings:

            *Ferguson 2001, Section 2.

*Laquer, Walter, ‘The Origins of Guerrilla Doctrine’. Journal of Contemporary History, Vol. 10, No. 3. (Jul., 1975), pp. 341-382 (available from: www.jstor.org).

-Discussion leaders: Derek Shook, Audrey Shore

 -March 5: Non-Western Developments: China and Japan and European Imperialism

            Readings:

*Maddison, Angus, Chinese Economic Performance in the Long-Run. OECD: 1998,   Chapter 2. Available from: http://www.eco.rug.nl/~Maddison/  

-March 7: Second library orientation or visit to an archive (TBA)

-March 9: Midterm exam

-March 19-30: NO CLASS MEETINGS. Note that your first bibliography is due soon after this

            independent work period. You can get feedback on your drafts and research from Jason or I.

-April 2: Video: War of the Worlds (on industrialization, imperialism and war). Analyze the

      impact that industrialization had on the ability of waging wars and the cost of wars (IN WRITING!).

-April 4: Debate 4

-April 6: Economics of World Wars (also: First annotated bibliography due!)

                  Readings:

                  *Harrison 2000, Chapter 1

      -Discussion leaders: David Trapp

-April 11: Workshop 1: Read the following article and be prepared to discuss it in class:

The Political Economy of British Taxation, 1660-1815 by Patrick K. O'Brien. The Economic History Review, New Series, Vol. 41, No. 1. (Feb., 1988), pp. 1-32. Focus on the following questions: 1) What is the main argument in the article? 2) How relevant is the point of view in the article, in terms of explaining the causes of wars? (NOTE: Use the Appstate Library’s electronic databases to find it).

      -Discussion leaders: ENTIRE CLASS

-April 13: Workshop 2: Read the following article and be prepared to discuss it in class:

Bargaining and War by R. Harrison Wagner. American Journal of Political Science, Vol. 44, No. 3. (Jul., 2000), pp. 469-484. Focus on the following questions: 1) What is the main argument in the article? 2) How relevant is the point of view in the article, in terms of explaining the causes of wars? (NOTE: Use the Appstate Library’s electronic databases to find it).

      -Discussion leaders: Justin Nagpal, Alex Gray

-April 16: Theory 8: The Cost and Financing of World War I

                  Readings:

*O’Brien, Patrick, ‘The Economic Effects’. History Today, Dec. 1994, pp. 22-29 (NOTE: Use the Appstate Library’s electronic databases to find this).

*Harrison, Mark & Stephen Broadberry, ‘The Economics of World War I: an Overview’. Preface and Introduction to The Economics of World War I. Stephen Broadberry and Mark Harrison, eds. (forthcoming, 2005). (available from: http://www2.warwick.ac.uk/fac/soc/economics/staff/faculty/harrison/papers/ww1overview.pdf

-Discussion leaders: Duncan Cessna

-April 18: Wars, Society, and Culture: Interdisciplinary Approaches and Findings

                  Readings:

* Simons, Anna, ‘War: Back to the Future’. Annual Review of Anthropology, Vol. 28. (1999), pp. 73-108 (available from: www.jstor.org).

* Brumann, Christoph, ‘Writing for Culture: Why a Successful Concept Should Not be Discarded’. Current Anthropology, Vol. 40, Supplement: Special Issue: Culture. A Second Chance? (Feb., 1999), pp. S1-S27 (available from: www.jstor.org).

      -Discussion leaders: ENTIRE CLASS

-April 20: Theory 9: The Cost and Financing of World War II

                  Readings:

                  *Harrison 2000, Chapter 1

-April 23: Debate 5 (also: Second annotated bibliography due!)

-April 25: Debate 6

-April 27: Debate 7

-April 30: Cold War Arms Races and Business

                  Readings:

*Clayton, James L., ‘The Fiscal Cost of the Cold War to the United States: The First 25 Years, 1947-1971’. The Western Political Quarterly, Vol. 25, No. 3 (Sept., 1972), pp. 375-395 (available from: www.jstor.org).

      -Discussion leaders: Richard Guy

-May 2: Case 5: Vietnam

Readings:

*Explore the following page: http://www.digitalhistory.uh.edu/modules/vietnam/index.cfm  

*On comparisons, see: http://www.cwc.lsu.edu/cwc/other/stats/warcost.htm 

*Also, read the following article and be prepared to discuss it in class: The Macroeconomic Effects of War Finance in the United States: World War II and the Korean War by Lee E. Ohanian. The American Economic Review, Vol. 87, No. 1. (Mar., 1997), pp. 23-40. Focus on the following questions: 1) What were the economic impacts of these two wars? 2) What is a ‘counterfactual’? Does this type of analysis serve any purpose? NOTE: Use the Appstate Library’s electronic databases to find it)

      -Discussion leaders: Chris Smith

-May 4: Review, preparation for the final exam (in class). ALSO: Have your mandatory

readings – Webber-Wildawsky 1986, Ferguson 2001, and Harrison 2000 – finished by this date!

-Final exam (Belk Hall 17):