Monday, February 15th, 1999

Announcements: None

Lecture notes:
I. Current Events
    A. Kosovo- leaders have agreed to release the bodies from the massacre there
    B. Serbs do not want to have NATO troops in their country to enforce a peace agreement
        1. US is now playing negotiator between the two warring parties
        2. Sec. of  State Madeline Albright wants her British and French counterparts, Robin
            Cook and Hubert Vedrine, to take over the peace talks.
            a. US feels it is more of  a Europeans concern
            b. US only took place as negotiator because the European nations were unsuccessful in
                getting the two warring parties together.
        3. President Clinton pledged 4,000 troops to aid in enforcing the peace agreement once it
             is  made.
            a. He has pledged the troop for up to three years
        4. NATO plans on sending 28,000 troops, 4,000 of which will be Americans.
        5. US is interested in promoting the freedom of the people in Kosovo.
        6. Also it is interested in reassuring the position of NATO and the UN in international
            relations
        7. The United States is very interested in the economic value of having peace in Europe.
    C. In the early 80's, when Yugoslavia started to fall apart, the US had a hands off approach to
         problems in Europe.
         1. Two years later, the US changed its policy, because to the economic value of trade
              with countries in Europe.
II. Western Europe Union (WEU)
    A. Collective defense and security network between 28 countries
    B. It is like NATO, but it does not include the United States or Canada
    C. It was formed under the guidance of NATO and the European Union
    D. Two reasons it failed:
        1. It would have been dominated by France because Great Britain isn't strong enough of a
            military power.
            a. Germany couldn't be in charge because of its historic role of being a military power
                (WWI and WWII).
            b. British don't like the French
            c. Germans liked the idea of having France in power at first, but later did not agree
                with it.
        2. The problems in Yugoslavia-- they weren't able establish peace
III. There is a new found interest in NATO
    A. The US has more military power than any kind of European Union could assemble.
    B. US has its own interests, so many believe that it is good to be in alliance with so
         the US can step in as an outside force in European disputes.
    C. Examples of collective defense:
        1. Group wants to do a task, but some problems need to have an outsider steps in
    D. US is an isolationist, hesitate to step into conflicts in Europe before WWII.
        1. George Washington warned in one of his last speeches as President not to get involved
            in foreign affairs.
        2. That is why the US's foreign policy was to not get involved for the first 150 years or so.
    E. But many viewed that as a mistake, so since that time it has.
IV. Ideology
    A. Liberalism--most popular point of view
            
    B. In "End of History" by Francis Fukuyama, he believes that ideas drove most of the events
        in history for the last 200 years.
        1. He is applying a dialectic to history
    C. Fascism falls out of the picture between 1945-1990
    D. After WWII, everything that was made to fight the battle between Liberalism and Marxism
    E. "Scottish Enlightenment"
        1. Is based on Calvinist values
    F.  Things to think about:
         1. Liberalism has strong ties to "Scottish Enlightenment"
         2. It emphasizes on the individual
         3. Autonomy
         4. Embracement of free will
         5. It comes from Christian beliefs
         6. Colonists
    G. Rationality--agrument that god creates people who can make their own decisions
    H. Values are widely used
    I. Liberalist Democracy--focuses on representation
    J. Liberalist Economics--focused on the economy
        1. Most important person:
            a. Adam Smith
                - was Scottish
                -he surprised everyone during his time because most Calvinists weren't interested in
                  money
                -His ideas were controversial; but now they are very common
     K. Marketalism-- How the government and economics work together
         1. Economy is used to make money
         2. Political Science- facilities economists
V. European countries in the 18th Century
    A.. Many had colonies in Africa, Asia and the New World
    B. None were really sure what to do with them?
    C. Many of Spain's colonies had gold, so Spain used the gold to build a armada.
        1. Almost invaded England
    D. All countries in Europe were competing militarily at this time
    E. Economists facilitates politicians and vice versa.
    F. British don't have many natural resources
        1. They established colonies in hopes of obtain natural resources.
    G. Britain was hurt the trade industry when the colonists had the Boston tea party
        1. If they control, they can control revenue
VI.   Adam Smith -1876
    A. Thought wealth was most important
    B. Thought it was best to leave system alone
        1. "Hidden Hand"
        2. Self interest
    C. The group will be best if the individual is left to do what they do best.
    D. Instead of using politics as a means of economists, use economics as a means for
        prosperous society
VII. Neo-Marketalism
        A. Response to Smith
        B. Letting everyone do what they do comparatively best
        C. "comparative Economics"
        D. Letting individual decide what products will be successful
        E. Always looking for self-interest even though it may hurt more
            Example: Japan-encourages unfair corporation
        F. Government subsidized companies, which causes monopoly
        G. Poland and Korea have this system
        H. Poland's companies failed because the prices were too high
        I. Poland government subsidized companies businesses to help it become more
            competitive.
        J. Westerners were afraid they would shut down their ship building.
VIII. How do we create industries that are profitable and that we will produce it?
    A. Not everyone can do what they are best at
    B. Politics is the competition between the distribution of power and wealth
    C. Economics is concerned with who is getting what.