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gov lecture 11_25_Notes
Course: GOVT 3665, Fall 2008School: Cornell
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I.FDRandtheDepression govlecture11/25 TheNewDeal 16/02/200914:46:00 Bornin1982towealthandprestigeinhydepark AristocraticDutchpatronfamily EducatedatGrotonprepschoolandwentotHarvard WaseditorofHarvardandthatshowhebecamereferredtoasFDR ThenwenttoColumbialawschool,workedinNYlawfirm, electedsenatorofny.WhenWilsonwenttowhitehousein1912,FDR becameassistantsecretarytothenavy...
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I.FDRandtheDepression govlecture11/25
TheNewDeal
16/02/200914:46:00
Bornin1982towealthandprestigeinhydepark AristocraticDutchpatronfamily EducatedatGrotonprepschoolandwentotHarvard WaseditorofHarvardandthatshowhebecamereferredtoasFDR ThenwenttoColumbialawschool,workedinNYlawfirm, electedsenatorofny.WhenWilsonwenttowhitehousein1912,FDR becameassistantsecretarytothenavy Heranforvpofdemocraticpartyinelectionof1920lost, Hardingwonin1920,hewasstruckwithpolio 192028struggledwithpoliowhichlefthimpermanently crippledinbothlegswhichmostAmericansdidntknow(becausethey didntseehimonTV).Wouldbeproppedupforpublicappearances. 1920HardingCoolidgeandHoover3republicanpresidents. Rooseveltswaselectedgovernorandreelectedin1930.Completedmuch ofSmithsagendadirectedreliefofneedy,regulationoffutilities, andurgedrepealofprohibition,alsobeganorganizinglaborwhich
wouldbecome II.H.Hooversocialthought 1932democraticnomineeagainstHoover.1896,1932,2008 transitionalelections.HadtochoosebetweenHooverandFDR.Hoover wasanengineerandbusinessman.Notapoliticalperson,wentto Stanford.AfterWWI,hedirectedthewarreliefeffortinEurope, whichmadehimfamousandhedidextremelywell.Madesecretaryof commerceunderhardingandCoolidge. HisideasarenicelysummedupinRuggedIndividualism campaignspeechin1928onp.1138wearechallengingineachtime intheAmericansystembetweenruggedindividualismandEuropean philosophypaternalismandstatesocialismsameidealofAmerican individualismnowusedinruggedindividualism.Continuousassertion ofLockeanindividualism.Canhearechoesoflockessecondtreatise. Restoredgovernmentinitspositionasanumpireinsteadaplayerin theeconomicgame.1139articulatesathemethatwillbecrucial linkageofstateplanningwithdictatorialandtotalitarian governmentarticulatedbyFrederickHayeck,theeconomicfreedomis diminishedwithstateeverystepofbureaucritizingliberalismfree speechfreepressandequlityofopinionfundamentalobjectwill
destroypolicialequalityNextpagetalksaboutAmericansystemon whathavebeentheresultsofouramericansystem,ourlandhas becomelandofopportunity In1922hooverhadwrittenabookcalledAmerican individualismtalksaboutequalityofopportunity1134weshall stimulatetheeffortofeachindividualtoachievementHooverwould putalloftheselockeansmithianAmericanidealsintermsof metaphorwehavetraced,raceoflife.1135,itisasifwehave setaraceweprovefreeeducation,givehtemafreestart,an umpire,thewwinnerishewhoshoesgreatestabilityandcharacter. Inelectioncampaignof1932incommonwealthclubofsanfran answeredhooverstillusingmetaphorofrunningarace.1175the smallmanstartsunderahandicapindependentbusinessmanrunning aloosingrace.Frugality,thriftprotestantethicvalues.Believed governmentshoulddonothinglaisezfairesocialDarwinists.People shouldspendlessandsavemore III.NewDealInnovations FDRofferednogreatsocialsolutionsin1932.Government shoulddonothing,nodetailsolutionstodepression.Offeredaction. Famousspeechin1932hepromisedthatifhewereelectedhewould
pursueboldpersistentexperimentation.Hewouldseewhatworked.It hasbeensuggestedthathewasmouthingnotionsofpragmatism.what Americawasvotingforwasalsohisoptimism,hisassurancebesides belttightening. PoliticaltheoryofsocialidealsofNewDeal:asareformer hisultimateprogramwasrooseveltsnewfreedomandCrolynew nationalism.GovernmentcontrolrationalandplanninginWWIleading uptonewdeal.Hadnonostalgiaforthepast,differentfromWilson. Itsreformsweretotallyacceptingofbigbusiness(closetoTRand crowly),biggovernment.differentfromTRandCrowlyinits advocatingrightsofworkers.Freeoftheoryofconspiracy,evilmen, butstructuraldefectsareatfalt.Doesntidealizeshopkeeperor pettymiddleclass.Pragmaticallysolvesproblemoftoday,doesnt wantblueprintforsalvation,certainlynotsocialism.Difference fromprogressivesandpopulistsrejectsabsolutetruthsandideal society,applicationofphilosophyofpragmatism.20thcentury problemsrequire20thcenturysolutions. Keynesianism Economicaspects:theacceptanceoftheKeynesianidealabout relationshipbetweengovandeconomy.ProfessoratCambridge,very
wellsociallyconnected.WroteabookafterVersaillespeacetreaty wasmuchtooharshongermanyindemanding,reparationsand dismantlingtheireconomywouldfuelgreatGermanresentment. Impacthereinthenewdealwashisconnectionwithuniversity professorswhoadvisedFDRandhadopposingideastohis Keynesarguesthattheonlywaytopreservecapitalismin dperssionisthroughmorestateactivityeithermanipulatingthe moneysupplyortheuseofbudgetandgovspending(fiscalpolicy) argueddepressionislackofinvestmentandpeoplebuyingthingsand lackofmoneysplay.Shouldputmoneyintosystemsoitslend,for interestsratessmallermoneywillcostless.Pumpeconomyactivity intosytem,shouldrunapublicdeficet.Fundpublicworksgetting themtowork,moreproductionanddemand.Moreneedtoproduce, directoppositeofwhathooverhadproposedtighteningbeltand saving.WasawayoffightingnewpowerofEnglishlaborpower,which atthattimewasstronglysocialistparty.Hewasamoemberof liberalparty.Wasarguingonlywaytotosavecapitalfromsocialist enemieswastomanipulatetheeconomy.Savecapitalismonehadto havegovinterventionineconomy.Wasaastornlgyantisocialisthis wayofcombatingsocialism.FDRsawthisinthesametermshefelt thathecouldsavecapitalisminthishourofcirishecouldsaveit
fromrevolutionaryalternativesbyadoptedkeynsian.Angrythat businesscommunityhadtedhiminsteadofsavingcapitalism.Ridiculed businessmanasingrates.Isavedyouandyoupaymenocreditand youcallmeasocialist. Intehgeneraleraofeconomicthoughtthereare2other thingsthatnewdealfocusedon: oThegovernmentpledgeditselfotendunemployment,primarily throughcreationofpublicworks.Whetherwriterorartistfederal writingandartistsprojects.WPA:publicworksprojects.An importantnewideathatthegovernmentpledgesitselfotinvolve itselfintheendingofunemployment(whichreached25%).Sayingthat unemploymentisabadthing,itmorallyandeconomicallyabadthing. Anewattitudeattitudebecauseearlyattitutdethatflourishedfor SocialDarwinistssaidthatunemployedareeitherlazyorunfit oDevelopmentofwelfarestatepractices.Recognitionthatstate hascertainresponsibilitiestoensureceratianamountofwelfare servicesofentitlement.20yersafterEuropeanahdimplementedthem socialsecurity,minwage,antichildlabor,andaheavilygraduated incometax.Yetofcoursenothealthinsurancewhichgermanyhadhat atlate19thcentury.HarryTrumanwantedafederalmedicalinsurance butvotedwonincongress
Perhapsmostcontroversialaspectissurroundingissueof planning.Theprogressivesandpopulistshadalreadyrejectedthe socialDarwinianvisionofasocialorderasunregulatedspontaneous uncontrolledhumanactivity.Populistsandprogressiveshadcalled forexpansionofgovasembodimentofhumancapacitytoservehuman purposeratherthanseehumanbeingsaspassivelyacceptingsocial worldwhosenaturallawsmadesocialpoliciesfutile.Thenewdeal builtonthatcommitmenttohumancontrolandmanagementotsociety andinsomewaystookitotitslogicalextreme.Argumentofgovas socialplanning,whichhadneverbeenidealofpopulistsand progressives,pushingtheirearlierideastoagreaterextreme. Hadalreadyassertedvisionin1932speechonp1167top paragraphinthesamewaywecantreviewcarefullywithoutbeing struckwiththishaphazardnesscouldhavebeenpresentedbygreater socialforesightandlargerdegreeofplanning. IV.SpiritoftheNewDeal Planning:Lillienthal,TugwellandLippinson Wouldbecentralandcontestedideainnewdeal,advisorshad verydifferentsetsofpinions.Hewouldveerbackandforthhimself.
ThelyricpoetofplanninginnewdealwasLillienthal,whowas directedofTVA(TennesseeValueAuthoritybuiltinsoutheast, transformedthatregion,bringingtomanystatesforthefirstitme electricity,water,dams).Lilisawplanningliketvathat domicraciescouldimproveeconomiesinsteadofbecomingdictatorial asineurope.OneafteranotherinEuropesuccumbingtofascism italy,Germany,Spaintocontroleconomy.Lillianthalgotcarried awaywithsocialplanning.Hiswritingsarealyricalhymnto democracytonealdealandplanningtheideaofaunifieddevelopment thatbydemocraticplanningtindivudalsineterscanincreasinglybe madewithinterestofallofus,communityinterest.AgreatPlan,a moralandreligiouspurposedeepandfundamental.Intheunified developmentofresourcesthisisaGreatPlan.Theunityofnature andmankind.Undersuchaplaninourvaluewemoveforwardhereis wholepeopleofasenseofacommonmoralpurpose.Notonegoalbuta thelifeprincipleofdemocraticplanningandanawakeningofthe Direction,aconsciousselectionofpeopleitiscrolyanddewey. Anawakeningofwholepeopleofasenseofthiscommonmoral Purposegreatestsentence,pushedtologicalextreme IfLillienthalthenTugwellisitsideologueandits TheoreticianofplanningColumbiauniversityeconomicsprofessors.His
Viewsonplanningwerenottypical,theyrepresentthefurthest Expressionleftofthedebateamonghisadvisorsoversocial Planning,furtheststatementontheleft.FDRwasmuchless Ideologicalmuchlesscommittedtovisionofplanningthatyoufind intugwell.Argumentaboutnewroleofstatespecificallyintermsof planninginPrincipleofplanningandinstitutionoflaissezfaire, nottypicalthoughtofnewdeal,wouldultimatelyberejected,p1192 beingwithcontinuityassertionofneedthatweapproachsocietyin termsofpurposeandendsopposedtobeinganeutralobserverthat cantinterfereamatureandrationaleconomywhichconsideredits purposesandsoughtreasonablewaystoattainthemtopof1198get offhanddismissalofAdamsmithitisimpossibletodiscussplanning withoutmotive..goesontodiscusssmithianassumptionsabout invisiblehandsurelytheseeconomistsmustbesureofthegrowing sizeofoureconomicestablishmentunderwrittenbyallstudiesof corporation,showsseparationofownershipandcontrolyetin definanceinsuchwellknownandrelevantfacts,wegoontreating motivesthatourknowledgeofmenhasbeenderivedfromafew18th centurybooksratherthanknowledgeofcontemporarymen.Critizes notionthatmenreceiveonlyprofit,gainandhavenobenevolent feelingsandAmericansarecapableofsacrificingselfinterestto
thenationinterest,whichrequiresgovplanning,butonethatis obligatorynotadvisory.1195conjuresupacentralgroupofexperts chargedwithdutyofplanningeconomiclife.Consistingofa suggestedbodyhasbeensuggestedon.Forsuchaschemeoforderand regularity.Everydepressionperiodweariesofwithinsecurity.What welongforissafetyratherthanadventure.Butwhenitis discoveredthatplanningforproductionmeansplanningfor consumptiontooprofitsmustbelimitedintheirusesandcontrol. 1196topofpageitwilldemonstratedaybydaybyacivilservice devotedtodisinterestedthinkingratherthanromantichopesof gain.Dedicatedtoadisinterestedrationalplanningofeconomy bringsusbacktobellamyandthewholeprogressivethemeofanew benevolentcommunalcooperativeidealandconcernforthenationfor thecommunityovertheindividual.Revivalofcivicrepublicanism seneinprogressivemovement.Newmoralreadingofhuannature, servicemotive,serviceforcommunity.Changeinpoliticalsocial idealsthatwehavebeentracinginthiscourse,hecallsforending theideasoflockeanindividualistcompetitiveidealsof18th century.Seein1197theintetionof18thand19thcenturylawasto installandprotectconflictthereisnoprivatebusinessandby thatwemeannoconsequence..serveapublicinterest.Itsmeaningis
alignedtocoordination,aimnottoguidanceofhiddenhand.Tugwell isclearlyunderspellasmanywereundersovietunionandtheir sovietenterprise.Sovietunionisthefuture1201thefutureis becomingvisibleinRussia.Notsovietpoliticsbutideaofplanning economy Criticsofnewdealarguedthateconomicplanningwasiselfa violationofpersonalfreedom.Itwouldleadultimatelytoproduce politicaldespotism,totalitarianruleasitdidinnazigermanyand inthesovietyunion.WeseethisargumentmostablymadebyLippmann Planninginaneconomyofabundance.Heisanexmapeofwouldmove fromfarlefttofarright.Coldwarwouldbefullofexscoialists whowouldmovetoright.NotuncommoninEuropeanpolitics (mussellini).Lippmannwasnotfascist,movesfromliberalleftto conservativeright.InhisearlycareerfreshoutofHarvardhewasa solidfigureinprogressiveandliberalfront.In1930s1950she becamemostsingleconservativepundit.Hewrotetheseweeklycolumns syndicatedinhundredsofnewspapers,usuallyveryimportantin conservativeessays.Arguesthatyesweacceptedextensivestate controlofeconomyduringwartime.Inthewartimeweacceptneedfor centralizationofgovernmentandplanning.Butifwedothisin peacetimeitwillinvolvefundamentalintrustionintopersonal
freedom,itisimpossibletakstoplanandstillahveaafree society.Heultimatelyarguesthatitisimpossibletoregulate economyinpeacetimebecauseofallmillionsofeconomicchoices individualsmakeinfreesocietywithoutimposingonfreedomtoact, onceyoustartdoingyougivegovpowerandauthority1209planning ofexistencetoengineerstechnologists.Yesthesedictatorswillbe patrioticbutwecannotassumethatthebenevolentdictatorwill alwaysbebenevolent.Economicplanningwillultimatelyleadto dictatorship.Tugwelllillienthalvslippmanfriedmanwillbecomerep forneoconservativecase.Lippmanninthisessayreadsasconsistent withWallStreetJournal.Newdealrepresentslillienthalsandtugwells. NewDealpoliticalspiritwillcontinuefrom1930sto1980s. didthisbyreachingouttolabor.Prolaborpassinglegislation, abilitytounionize.Includingfarmersincoalition.Virtuallydid nothingaboutracerelations,howhekeptsouthindemocraticparty. OccassionalyEleanorroosveltmightsyasomethingaboutblacksin America,butintermsofpublicpolicy,newdealtookahandsoff approachtoblacksinAmerica,partofelectoralstrategy.Also unlikeprogressiveshemadeallianceswithcitybosses(Progressives calledcitybossesevil)cuzheneededvotesoftheirwards.This alliancepersistedandwasstableuntil1960swhenVietnamwarbroke
upalliancebypullingawayfromdemocraticpartysomeifitsworking classsupportandculturewars.Thesouthwouldpullawaycuzwithin demroseagroupofcivilrightsactiviitsin40sand50shumphrey andNixonsinsightthatcultureresentmentandracialinsightcould pullawaysouthfromdemparty.IncrediblesuccessstoryfromNixon. Insititonalspirit:newdealhascertaincontinualmarkswith TRandCrowlyopposedtoWilsonandBrandiceinitsacceptanceof businessandtorestoreeconomicspirit.Nonostalgia,verycongenial toecononimcspirit.GalbrightBelievedincontervailngpowerbig businesswasokayifitspowerwasbalancedorcontrolledbybig laborbybigagricultureandbiggov.typeofmadisonianpluralist beliefincompetinginterests.Competitionbetweenvastsectorsof economy,managementlaboragriculture,akindofeconomicchecksand balances.CalledbysomeCORPORATELIBERALISM. Corporateliberalism Akinofmergingandbalancingofpowerswhilegov administratesbusinessthroughalltypesofexecutiveagencies.What willpreventbigbusinessformtakingoverbiggovernment?TedLowy EndofLiberalismcapturebybigbusinessofthebiggovernmentthat wassetupbynewdealtoregulateandcontrolit.Bymechanismslike
regulatoryagencieshavingpeoplefrombusinessesthattheyregulate beontheboard.Corporateliberalismpartnershipbetweenbiggov andbusinessgivethemauthorityofstate. AntiSocialist Accusationsaboutsocialismandnewdealassocialist.FDR calledsocialist.Hoovercalledhimsocialistandcommnistcuzhe soughttocollectivizeAmericansystem.Sometimessondedlikea socialistbecausetherewerenontohisleft.Neolockeanliberalism, norelasocialistalternativeasinEuropewhichallowedhimtosound socialistcuzheneverhadtoattacksocialismbydefendingprivate property.Solidlyinthelockeanliberalindivudalconsensusfocus wasindivudalopportunity,butwithsensethatgovwasnecessaryto playalargerrolethatlockeorhis17th18thcenturydiscipleshad imagine.Newdealstillwantslockeanindividualraceoflife,but sortofcoachorcheerleader,declaringitselfonsideoflesswell todo,urginghtemoninrace.BUTnevergettingridoffundamental assumptionthatwhatgenerateslifeisacompetitiveraceamong individuals.NewdealattitudeistoopenAmericandreamthatanyone canwin.Persiststothisday.LBJlastofnewdealinspired presidentsusedraceoflifetomakehisargumentaboutaffirmative action.Hesaidyoudonottakeapersonwhoforpersonhasbeen hobbledbychangeandliberatehimandbringhimuptostartingline ofraceandsayyouarefreetocompetewithothersandstilljustly belivethatyouhavebenecompetingfairly.Oneofproductsofnew dealwasHeadStart,embodiesideaofraceoflife. Newdealthennotbyanymeanswassocialism.Itisanon lockeanidealforanincreasedroleofthestatetoreachthelockean goaloffaircompetitiveindivudalism. DemocraticConsumerism Characteristicofnewdealisitspreoccupationof redistributionofconsumergoodsinAmerica.Fromenhancing productingtoamoreegalitarianconsumptionpattern.MoreAmericans havethegoodthingsinlife.FrancisPerkinsperfectexampleofthat -Planning : Lillienthal, Tugwell and Lippinson
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GOVT 3665 8/28/08 I. Introduction II. Course organization 20% + 20%: Two take home Prelims 40%: Final Exam: Friday 19th afternoon (Last Final of the Semester) syllabus: guide for reading + lecture topics 3 books: Anthology (Primary Source) American Politi
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BEE 299Lesson 11o The Southeast False Creek is a project that was started in 1991 using the Urban Agriculture Strategy and energy efficient strategy creating a model city for sustainability. This model is to build a residential community which is strong
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BEE 299Lesson 12, Part 1&2 Part 1To start I would like to define an EIP concept and then propose an existing business that has potential for industrial symbiosis. An EIP, Eco-Industrial Park, is a concept where many different companies which all work in
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Lesson 13, Part 2 4-20-08 Lesson 13, Part 2 There are many things that need to be taken into consideration to conclude what is the best choice in terms of sustainability and being eco-conscious. The everyday choice example that I have chosen to consider a
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Lesson 15, Option 2 May 4th, 2008Conventional and Reflective Morality Is what we have always done what we ought to do? I do not agree with the idea that what we have always done is what we ought to do because especially in todays world something that was
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Economics 301 Fall, 1999SECOND HOUR EXAM November 9thJ. Wissink Cornell UniversityDirections: Answer all questions. Write legibly, concisely and coherently. Be sure to label all axes, functions and variables used. READ QUESTIONS CAREFULLY. Draw
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2002 OctoberVENTURE CAPITAL START UP CO-EVOLUTION AND THE EMERGENCE & DEVELOPMENT OF ISRAELS NEW HIGH TECH CLUSTER*Part1: Macro-Background and Industry AnalysisGil Avnimelech and Morris TeubalThis paper is an outgrowth of participation in the IFISE p
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Fruit and vegetables in IndiaFood & Agribusiness ResearchIssue: 059-2002 May 2002 Author: Sapna Naik RabobankIndia Telno #+91 22 2034567 Faxno #+91 22 2037079 E-mail: Sapna.Naik@bom.rabobank.comIndustry NoteFruit and vegetables in IndiaIntroduction I
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HKU392ALI F. FARHOOMANDNATIONAL INNOVATION SYSTEMS OF CHINA AND THE ASIAN NEWLY INDUSTRIALISED ECONOMIES: A COMPARATIVE ANALYSISIntroductionThe Asian newly industrialised economies (ANIEs), Taiwan, South Korea, Singapore and Hong Kong, have achieved h
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NBA 671 Fall 2007 CLASS QUESTIONS (11) November 20 INTERNATIONAL BUSINESS: NORMS - Polgreen and Simons, Global Sludge Ends in Tragedy for Ivory Coast - Wright, Altria Seeks Indonesian Smokers - Donaldson, Values in Tension - Paine, et. al., Up to Code 1.
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5 PsA Framework for Ethical DecisionMakingWhat do we owe the various stakeholders? (Re law, industry standards, professional codes, organizational norms [policies, values], accepted ethical principles, personal integrity?) Which alternative(s) most reas
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NBA 671 Business Ethics Fall 2007 FINAL PROJECT Date due: Thursday, December 6, in Sage 304 (the Faculty Support office), by 1:00 pm. Length: 7-8 pages, double-spaced, normal margins. Topic: Select a problematic (or even controversial) choice situation, i
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NBA 671 BUSINESS ETHICS Spring 2007Time: TR 11:55 1:10 Room: Sage B06 Instructor: Dana Radcliffe Office: Sage Hall 302 Office hours: TR 10:15 11:45 and by appointment Telephone: 315-729-9195 Email: dmr42@cornell.edu Poor moral judgment can ruin a manager
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NBA 671 Fall 2007 PAPER 1 Date due: Tuesday, November 6, at class time. Length: Approximately 3 pages, double-spaced, normal margins Topic: After selecting either reading 55 (on Genentech) or reading 56 (on Abbott) in the course reader, identify a controv
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NBA 671 Fall 2007 PAPER 2 Date due: Thursday, November 15, at class time. Length: Approximately 3 pages, double-spaced, normal margins Topic: Select a case involving a controversial business practice and a variety of stakeholders with divergent interests.
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NBA 671 Fall 2007 PAPER 3 Date due: Thursday, November 29, at class time. Length: Approximately 3 pages, double-spaced, normal margins Topic: Some writers (e.g., Milton Friedman) and business leaders maintain that a company serves society best when it mak
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NBA 671 Fall 2007 CLASS QUESTIONS (1) October 16 1. It is often saidonly half-jokinglythat business ethics is an oxymoron (a contradiction in terms). What accounts for this perception? 2. If its legal, its ethical. Your response? 3. How do you know when y
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NBA 671 Fall 2007 CLASS QUESTIONS (2) October 18 ETHICAL ISSUES Duhigg, Bilking the Elderly, With a Corporate Assist Duhigg, 2 Firms Tied to Phone Lists Will Review Their Policies1. Which business practices described in these articles raise ethical issue