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Untitled-7 1 25/01/2019 14:39
 BRIEF C O N T E NT S

PART 1 Introduction and Key Principles 11 The Income-Expenditure Model 222

1 Introduction: What Is Economics? 1 12 Investment and Financial Markets 253

2 The Key Principles of Economics 27 PART 5 Money, Banking, and Monetary Policy
3 Exchange and Markets 47
13 Money and the Banking System 272
4 Demand, Supply, and Market
14 The Federal Reserve and Monetary
Equilibrium 62
Policy 291
PART 2 The Basic Concepts in Macroeconomics
PART 6 Inflation, Unemployment, and Economic
Policy
5 Measuring a Nation’s Production
and Income 92 15 Modern Macroeconomics: From the
6 Unemployment and Inflation 115 Short Run to the Long Run 311
16 The Dynamics of Inflation and
PART 3 The Economy in the Long Run Unemployment 329
7 The Economy at Full Employment 136 17 Macroeconomic Policy Debates 348
8 Why Do Economies Grow? 156
PART 7 The International Economy
PART 4 Economic Fluctuations and Fiscal Policy 18 International Trade and Public
Policy 365
9 Aggregate Demand and Aggregate
Supply 184 19 The World of International
Finance 386
10 Fiscal Policy 204

iv

A01_OSUL2200_10_SE_FM.indd 4 16/11/18 12:06 PM

 CONT E NT S

Preface xxii Using Macroeconomics to Understand

Economic Fluctuations 12

PART 1 Using Macroeconomics to Make Informed

Introduction and Key Principles Business Decisions 12

Preview of Coming Attractions:

Microeconomics 12
1 Introduction: What Is Economics? 1
Using Microeconomics to Understand Markets
and Predict Changes 12
What Is Economics? 2
Using Microeconomics to Make Personal and
Positive versus Normative Analysis 3
Managerial Decisions 12
The Three Key Economic Questions: What, How,
Using Microeconomics to Evaluate Public
and Who? 4
Policies 13
Economic Models 4
* SUMMARY 13 * KEY TERMS 14
* EXERCISES 14 * CRITICAL THINKING 15
Economic Analysis and Modern Problems 5
Economic View of Traffic Congestion 5 APPENDIX: Using Graphs and Percentages 15
USING GRAPHS 15
Trade-offs from International Trade 5
COMPUTING PERCENTAGE CHANGES AND USING
Economic View of Managing the U.S. Economy 6 EQUATIONS 23

The Economic Way of Thinking 6 APPLICATION 3 The Perils of Percentages 24

Use Assumptions to Simplify 7

2 The Key Principles of Economics 27
Isolate Variables—Ceteris Paribus 7
The Principle of Opportunity Cost 28
Think at the Margin 7
The Cost of College 28
Rational People Respond to Incentives 8
The Cost of Military Spending 29
APPLICATION 1 Incentives to Install Rooftop Solar
Panels 8 Opportunity Cost and the Production Possibilities
Curve 29
Example: Southern California Addresses Its
Congestion Problem 9 APPLICATION 1 Don’t Forget the Costs of Time
and Invested Funds 31
APPLICATION 2 Housing Prices in Cuba 9
The Marginal Principle 32
Employability: Economic Logic on the Job 10
How Many Movie Sequels? 32
Preview of Coming Attractions:
Renting College Facilities 33
Macroeconomics 11
Automobile Emissions Standards 34
Using Macroeconomics to Understand Why
Economies Grow 11 Driving Speed and Safety 34

A01_OSUL2200_10_SE_FM.indd 5 16/11/18 12:06 PM

 vi

APPLICATION 2 How Fast to Sail? 35 APPLICATION 2 Weather-Linked Crop

Insurance 55
The Principle of Voluntary Exchange 35
Market Failure and the Role of
Exchange and Markets 35
Government 56
Online Games and Market Exchange 36 Government Enforces the Rules of Exchange 56

APPLICATION 3 Rory McIlroy and Government Can Reduce Economic

Weed-Whacking 36 Uncertainty 57

The Principle of Diminishing Returns 37 APPLICATION 3 Property Rights and Urban

Slums 58
APPLICATION 4 Fertilizer and Crop Yields 38
* SUMMARY 58 * KEY TERMS 58
* EXERCISES 59 * CRITICAL THINKING 61
The Real-Nominal Principle 38
The Design of Public Programs 39

The Value of the Minimum Wage 39 4 Demand, Supply, and Market

Equilibrium 62
APPLICATION 5 Repaying Student Loans 40

* SUMMARY 40 * KEY TERMS 41 The Demand Curve 63

* EXERCISES 41 * CRITICAL THINKING 45
The Individual Demand Curve and the Law of
* ECONOMIC EXPERIMENT 45 Demand 63

From Individual Demand to Market Demand 65

3 Exchange and Markets 47 APPLICATION 1 The Law of Demand for Young

Smokers 66

Comparative Advantage The Supply Curve 66

and Exchange 48
The Individual Supply Curve and the Law of
Specialization and the Gains from Trade 48
Supply 67
Comparative Advantage versus Absolute
Why Is the Individual Supply Curve Positively
Advantage 50
Sloped? 68
The Division of Labor and Exchange 50
From Individual Supply to Market Supply 69
Comparative Advantage and International
Why Is the Market Supply Curve Positively
Trade 51
Sloped? 70
Outsourcing 51
APPLICATION 2 Law of Supply and Woolympics 71
APPLICATION 1 Absolute Disadvantage and
Comparative Advantage in Latvia 52 Market Equilibrium: Bringing Demand and
Supply Together 71
Markets 53 Excess Demand Causes the Price to Rise 71
Virtues of Markets 53
Excess Supply Causes the Price to Drop 72
The Role of Entrepreneurs 54
APPLICATION 3 Shrinking Wine Lakes 73
Example of the Emergence of Markets: POW
Camps 55 Market Effects of Changes in Demand 73

A01_OSUL2200_10_SE_FM.indd 6 16/11/18 12:06 PM

 vii

Change in Quantity Demanded versus Change in The Production Approach: Measuring a

Demand 73 Nation’s Macroeconomic Activity Using
Gross Domestic Product 95
Increases in Demand Shift the Demand Curve 74
The Components of GDP 97
Decreases in Demand Shift the Demand Curve 76
Putting It All Together: The GDP Equation 100
A Decrease in Demand Decreases the Equilibrium
Price 77 APPLICATION 2 Intellectual Property in GDP
Accounts 101
APPLICATION 4 Craft Beer and the Price of Hops 77
The Income Approach: Measuring a Nation’s
Market Effects of Changes in Supply 78
Macroeconomic Activity Using National
Change in Quantity Supplied versus Change in Income 101
Supply 78
Measuring National Income 101
Increases in Supply Shift the Supply Curve 78
Measuring National Income through Value
An Increase in Supply Decreases the Equilibrium Added 102
Price 80
An Expanded Circular Flow 103
Decreases in Supply Shift the Supply Curve 80
APPLICATION 3 The Links Between Self-Reported
A Decrease in Supply Increases the Equilibrium Happiness and GDP 104
Price 82
A Closer Examination of Nominal and Real
Simultaneous Changes in Demand and Supply 82
GDP 104
APPLICATION 5 The Harmattan and the Price of Measuring Real versus Nominal GDP 105
Chocolate 84
How to Use the GDP Def lator 106
Predicting and Explaining Market Changes 84
Fluctuations in GDP 107
APPLICATION 6 Why Lower Drug Prices? 85
GDP as a Measure of Welfare 109
* SUMMARY 85 * KEY TERMS 86
* EXERCISES 86 * CRITICAL THINKING 90 Shortcomings of GDP as a Measure of Welfare 109

* ECONOMIC EXPERIMENT 90 * SUMMARY 110 * KEY TERMS 111

* EXERCISES 111 * CRITICAL THINKING 114

PART 2
The Basic Concepts in Macroeconomics 6 Unemployment and Inflation 115
Examining Unemployment 116
5 Measuring a Nation’s Production and How Is Unemployment Defined and Measured? 116
Income 92
Alternative Measures of Unemployment and Why
They Are Important 118
The Flip Sides of Macroeconomic Activity:
Production and Income 93 Who Are the Unemployed? 119

The Circular Flow of Production and Income 94 APPLICATION 1 Declining Labor Force
Participation 120
APPLICATION 1 Using Value Added to Measure
the True Size of Walmart 95 Categories of Unemployment 121

A01_OSUL2200_10_SE_FM.indd 7 16/11/18 12:06 PM

 viii

Types of Unemployment: Cyclical, Frictional, and APPLICATION 1 The Black Death and Living
Structural 121 Standards in Old England 142

The Natural Rate of Unemployment 122 Labor Market Equilibrium and Full
Employment 143
APPLICATION 2 Disability Insurance and Labor
Force Participation 123 Using the Full-Employment Model 144
The Costs of Unemployment 123 Taxes and Potential Output 144

APPLICATION 3 Social Norms, Unemployment, and Real Business Cycle Theory 145
Perceived Happiness 124
APPLICATION 2 Do European Soccer Stars Change
Clubs to Reduce Their Taxes? 147
The Consumer Price Index and the Cost of
Living 125
APPLICATION 3 Government Policies and Savings
The CPI versus the Chain Index for GDP 126 Rates 148

APPLICATION 4 The Introduction of Cell Phones Dividing Output among Competing

and the BIAS in the CPI 127 Demands for GDP at Full
Employment 148
Problems in Measuring Changes in Prices 127
International Comparisons 149
Inflation 127
Crowding Out in a Closed Economy 149
Historical U.S. Inf lation Rates 128
Crowding Out in an Open Economy 151
The Perils of Def lation 129
Crowding In 151
The Costs of Inflation 130 * SUMMARY 152 * KEY TERMS 152
* EXERCISES 152 * CRITICAL THINKING 155
Anticipated Inf lation 130

Unanticipated Inf lation 130

8 Why Do Economies Grow? 156
* SUMMARY 131 * KEY TERMS 132
* EXERCISES 132 * CRITICAL THINKING 135 Economic Growth Rates 157
Measuring Economic Growth 158
PART 3
The Economy in the Long Run Comparing the Growth Rates of Various
Countries 159

Are Poor Countries Catching Up? 160

7 The Economy at Full Employment 136
APPLICATION 1 Global Warming, Rich Countries,
Wage and Price Flexibility and Full and Poor Countries 161
Employment 137
APPLICATION 2 Behavioral Incentives in
The Production Function 137 Development 162

Wages and the Demand and Supply for Capital Deepening 162
Labor 140
Saving and Investment 163
Labor Market Equilibrium 141
How Do Population Growth, Government, and
Changes in Demand and Supply 141 Trade Affect Capital Deepening? 164

A01_OSUL2200_10_SE_FM.indd 8 16/11/18 12:06 PM

 ix

The Key Role of Technological Progress 166 Flexible and Sticky Prices 185

How Do We Measure Technological How Demand Determines Output in the Short

Progress? 166 Run 186

Using Growth Accounting 167 APPLICATION 1 Measuring Price Stickiness in

Consumer Markets 187
APPLICATION 3 Sources of Growth in China
and India 168 Understanding Aggregate Demand 187
APPLICATION 4 How Important is Infrastructure? 169 What Is the Aggregate Demand Curve? 187

What Causes Technological Progress? 169 The Components of Aggregate Demand 188

Research and Development Funding 169 Why the Aggregate Demand Curve Slopes
Downward 188
Monopolies That Spur Innovation 170
Shifts in the Aggregate Demand Curve 189
The Scale of the Market 170
How the Multiplier Makes the Shift Bigger 190
Induced Innovations 171
APPLICATION 2 Two Approaches to Determining
Education, Human Capital, and the Accumulation the Causes of Recessions 194
of Knowledge 171

New Growth Theory 172 Understanding Aggregate Supply 194

The Long-Run Aggregate Supply Curve 194
APPLICATION 5 The Role of Megacities in
Economic Growth 173 The Short-Run Aggregate Supply Curve 196

APPLICATION 6 Culture, Evolution, and Economic

Supply Shocks 197
Growth 173
APPLICATION 3 Oil Price Increases and the
Changing U.S. Economy 198
A Key Governmental Role: Providing
the Correct Incentives and Property
From the Short Run to the Long Run 199
Rights 174
* SUMMARY 201 * KEY TERMS 201
APPLICATION 7 Lack of Property Rights Hinders * EXERCISES 201 * CRITICAL THINKING 203
Growth in Peru 174

* SUMMARY 175 * KEY TERMS 175

* EXERCISES 176 * CRITICAL THINKING 178 10 Fiscal Policy 204
APPENDIX: A Model of Capital Deepening 179
The Role of Fiscal Policy 205
PART 4 Fiscal Policy and Aggregate Demand 205
Economic Fluctuations and Fiscal Policy The Fiscal Multiplier 206

The Limits to Stabilization Policy 207

9 Aggregate Demand and Aggregate
APPLICATION 1 Increasing Life Expectancy and
Supply 184 Aging Populations Spur Costs of Entitlement
Programs 209
Sticky Prices and Their Macroeconomic
Consequences 185 The Federal Budget 210

A01_OSUL2200_10_SE_FM.indd 9 16/11/18 12:06 PM

 x

Federal Spending 210 APPLICATION 2 Multipliers in Good Times and

Bad 233
Federal Revenues 211

The Federal Deficit and Fiscal Policy 213 Government Spending and Taxation 233

Automatic Stabilizers 213 Fiscal Multipliers 233

Are Deficits Bad? 214 Using Fiscal Multipliers 235

APPLICATION 2 Dynamic Scoring 215 Understanding Automatic Stabilizers 237

Fiscal Policy in U.S. History 215 APPLICATION 3 The Broken Window Fallacy and
Keynesian Economics 238
The Depression Era 215
Exports and Imports 240
The Kennedy Administration 216

The Vietnam War Era 216 APPLICATION 4 The Locomotive Effect:

How Foreign Demand Affects a Country’s
The Reagan Administration 217 Output 242

The Clinton and George W. Bush The Income-Expenditure Model and the
Administrations 217 Aggregate Demand Curve 243
The Obama and Trump Administrations 217 * SUMMARY 245 * KEY TERMS 245
* EXERCISES 245 * CRITICAL THINKING 248
APPLICATION 3 How Effective was the 2009
Stimulus? 218 * ECONOMIC EXPERIMENT 249

* SUMMARY 219 * KEY TERMS 220

APPENDIX: Formulas for Equilibrium Income and
* EXERCISES 220 * CRITICAL THINKING 221
the Multiplier 249

11 The Income-Expenditure Model 222

12 Investment and Financial
A Simple Income-Expenditure Model 223
Markets 253

Equilibrium Output 223 An Investment: A Plunge into the

Unknown 254
Adjusting to Equilibrium Output 224
APPLICATION 1 Energy Price Uncertainty Reduces
The Consumption Function 226
Investment Spending 255
Consumer Spending and Income 226
Evaluating the Future 256
Changes in the Consumption Function 227
Understanding Present Value 256
APPLICATION 1 The Wealthy Hand-To-Mouth and
Real and Nominal Interest Rates 258
Consumption Spending 228

APPLICATION 2 Explaining Low Investment

Equilibrium Output and the Consumption
Rates 259
Function 229
Saving and Investment 230 Understanding Investment Decisions 260

Understanding the Multiplier 231 Investment and the Stock Market 261

A01_OSUL2200_10_SE_FM.indd 10 16/11/18 12:06 PM

 xi

APPLICATION 3 Underwater Homeowners and APPLICATION 4 Coping with the Financial Chaos
Debt Forgiveness 263 Caused by the Mortgage Crisis 285

* SUMMARY 286 * KEY TERMS 286

How Financial Intermediaries Facilitate
* EXERCISES 286 * CRITICAL THINKING 288
Investment 263
* ECONOMIC EXPERIMENT 288
When Financial Intermediaries Malfunction 266

APPLICATION 4 New Regulations for Financial APPENDIX: Formula for Deposit Creation 290
Stability 267

* SUMMARY 268 * KEY TERMS 268 14 The Federal Reserve and Monetary
* EXERCISES 269 * CRITICAL THINKING 270 Policy 291
* ECONOMIC EXPERIMENT 271
The Money Market 292
The Demand for Money 292
PART 5
Money, Banking, and Monetary Policy APPLICATION 1 What to Do with the Fed’s Balance
Sheet? 294

13 Money and the Banking System 272 How the Federal Reserve Can Change the
Money Supply 295
What Is Money? 273
Open Market Operations 295
Three Properties of Money 273
Other Tools of the Fed 296
Measuring Money in the U.S. Economy 275
APPLICATION 2 Commodity Prices and Interest
APPLICATION 1 Cash as a Sign of Trust 276 Rates 297

How Banks Create Money 277 How Interest Rates Are Determined:
A Bank’s Balance Sheet: Where the Money Comes Combining the Demand and Supply
from and Where It Goes 277 of Money 298
How Banks Create Money 278 Interest Rates and Bond Prices 299

How the Money Multiplier Works 279 Interest Rates and How They Change
How the Money Multiplier Works in Reverse 280 Investment and Output (GDP) 301

A Banker’s Bank: The Federal Reserve 281 APPLICATION 3 The Effectiveness of

Committees 301
APPLICATION 2 Bitcoin and Cryptocurrencies 281
Monetary Policy and International Trade 303
Functions of the Federal Reserve 282

The Structure of the Federal Reserve 282 Monetary Policy Challenges for the Fed 305

The Independence of the Federal Reserve 283 Lags in Monetary Policy 305

Inf luencing Market Expectations: From the

What the Federal Reserve Does During a
Federal Funds Rate to Interest Rates on
Financial Crisis 284
Long-Term Bonds 306
APPLICATION 3 Stress Tests for the Financial * SUMMARY 307 * KEY TERMS 307
System 284 * EXERCISES 308 * CRITICAL THINKING 310

A01_OSUL2200_10_SE_FM.indd 11 16/11/18 12:06 PM

 xii

PART 6 16 The Dynamics of Inflation and

Inflation, Unemployment, Unemployment 329
and Economic Policy
Money Growth, Inflation, and Interest
Rates 330
15 Modern Macroeconomics: From the
Short Run to the Long Run 311 Inf lation in a Steady State 330

How Changes in the Growth Rate of Money

Linking the Short Run and the Long Affect the Steady State 331
Run 312
The Difference between the Short and Long Understanding the Expectations Phillips
Run 312 Curve: The Relationship between
Unemployment and Inflation 332
Wages and Prices and Their Adjustment over
Time 312 APPLICATION 1 Shifts in the Natural Rate of
Unemployment 332
APPLICATION 1 Secular Stagnation? 313
Are the Public’s Expectations about Inf lation
How Wage and Price Changes Move Rational? 333
the Economy Naturally Back to Full
U.S. Inf lation and Unemployment in the
Employment 314
1980s 334
Returning to Full Employment from a
Shifts in the Natural Rate of Unemployment in
Recession 314
the 1990s 335
Returning to Full Employment from a Boom 315
How the Credibility of a Nation’s Central
Economic Policy and the Speed of Bank Affects Inflation 336
Adjustment 316
APPLICATION 2 Estimating the Natural Real
Liquidity Traps or Zero Lower Bound 317
Interest Rate Around the World 337
Political Business Cycles 318
APPLICATION 3 The Ends of Hyperinflations 339
APPLICATION 2 Elections, Political Parties, and
Voter Expectations 318 Inflation and the Velocity of Money 340

The Economics Behind the Adjustment Hyperinflation 342

Process 319
How Budget Deficits Lead to Hyperinf lation 343
The Long-Run Neutrality of Money 321 * SUMMARY 344 * KEY TERMS 344
Crowding Out in the Long Run 322 * EXERCISES 345 * CRITICAL THINKING 346

* ECONOMIC EXPERIMENT 347

APPLICATION 3 Increasing Health-Care
Expenditures and Crowding Out 324

Classical Economics in Historical 17 Macroeconomic Policy Debates 348

Perspective 324
Say’s Law 325 Should We Balance the Federal
Budget? 349
Keynesian and Classical Debates 325
The Budget in Recent Decades 349
* SUMMARY 326 * KEY TERMS 326
* EXERCISES 326 * CRITICAL THINKING 328 Five Debates about Deficits 351

A01_OSUL2200_10_SE_FM.indd 12 16/11/18 12:06 PM

 xiii

Should the Fed Target Both Inflation and To Help Domestic Firms Establish Monopolies in
Employment? 355 World Markets 374

APPLICATION 1 Creating the U.S. Federal Fiscal APPLICATION 2 Chinese Imports and Local
System through Debt Policy 355 Economies 375

Two Debates about Targeting 356

A Brief History of International Tariff and
Trade Agreements 375
APPLICATION 2 Do We Need to Change our
Inflation Targets? 358
Recent Policy Debates and Trade
Agreements 376
Should We Tax Consumption Rather than
Income? 359 Are Foreign Producers Dumping Their
Products? 377
Two Debates about Consumption Taxation 360

APPLICATION 3 Should We Care If Another

APPLICATION 3 Is a VAT in Our Future? 362
Country Adopts Our Latest Technology? 377
* SUMMARY 362 * KEY TERMS 362
* EXERCISES 363 * CRITICAL THINKING 364 Do Trade Laws Inhibit Environmental
Protection? 378

PART 7 APPLICATION 4 How American are American

The International Economy Cars? 379

Do Outsourcing and Trade Cause Income

Inequality? 380
18 International Trade and Public
Policy 365 Why Do People Protest Free Trade? 381
* SUMMARY 381 * KEY TERMS 382
Benefits from Specialization and Trade 366 * EXERCISES 382 * CRITICAL THINKING 385

Production Possibilities Curve 366

Comparative Advantage and the Terms of 19 The World of International

Trade 368 Finance 386
The Consumption Possibilities Curve 368
How Exchange Rates Are Determined 387
How Free Trade Affects Employment 369
What are Exchange Rates? 387
Protectionist Policies 370
How Demand and Supply Determine Exchange
Import Bans 370 Rates 388

Quotas and Voluntary Export Restraints 370 Changes in Demand or Supply 389
Responses to Protectionist Policies 372
Real Exchange Rates and Purchasing Power
Parity 391
APPLICATION 1 The Impact of Tariffs on the Poor 373

APPLICATION 1 Big Macs in Norway 393

What Are the Rationales for Protectionist
Policies? 373
The Current Account, the Financial Account,
To Shield Workers from Foreign Competition 374 and the Capital Account 394
To Nurture Infant Industries until They Rules for Calculating the Current, Financial, and
Mature 374 Capital Accounts 394

A01_OSUL2200_10_SE_FM.indd 13 16/11/18 12:06 PM

 xiv

APPLICATION 2 Tax Havens and Global Managing Financial Crises 401

Imbalances 397
APPLICATION 3 Problems within the Euro Bloc 402
Fixed and Flexible Exchange Rates 397
APPLICATION 4 The Argentine Financial Crisis 404
Fixing the Exchange Rate 398
* SUMMARY 404 * KEY TERMS 405
Fixed versus Flexible Exchange Rates 399 * EXERCISES 405 * CRITICAL THINKING 407

The U.S. Experience with Fixed and Flexible * ECONOMIC EXPERIMENT 408
Exchange Rates 400
Glossary 409
Exchange Rate Systems Today 401
Index 417

Photo Credits 432

A01_OSUL2200_10_SE_FM.indd 14 16/11/18 12:06 PM

 P REF A C E

In preparing this tenth edition, we had three primary goals. • In Chapter 18, we explore how automobile companies
First, we wanted to incorporate the ongoing changes in the have been purchasing a large fraction of their parts
United States and world economies as they have continued ­outside the United States to put into “American” cars.
to recover and adjust from the worldwide recession of the • We also incorporated a total of 21 exciting new
last decade. Second, we strived to update this edition to Applications into this edition including four in the
reflect the latest exciting developments in economic think- common chapters (Chapters 1–4). In addition, we
ing and make these accessible to new students of economics. incorporated a total of 9 new chapter-opening ­stories.
Finally, we wanted to stay true to the philosophy of the text- These fresh applications and chapter openers show the
book—using basic concepts of economics to explain a wide widespread relevance of economic analysis.
variety of timely and interesting economic applications.
• In the first four introductory chapters, the new
To improve student results, we recommend pairing the
­applications include solar tax credits (Chapter 1), crop
text content with MyLab Economics, which is the teach-
insurance and food production (Chapter 3), and the
ing and learning platform that empowers you to reach every
effects of the growing popularity of craft beer on hop
student. By combining trusted author content with digital
prices (Chapter 4).
tools and a flexible platform, MyLab personalizes the learn-
ing experience and will help your students learn and retain • In the core macroeconomics chapters, other new
key course concepts while developing skills that future applications include explaining high rates of saving in
employers are seeking in their candidates. From Digital China (Chapter 7), the behavior of households that
Interactives to Real-time Data Analysis Exercises, are wealthy but have little cash on hand (Chapter 11),
MyLab Economics helps you teach your course, your way. theories of why investment spending has been low in
Learn more at www.pearson.com/mylab/economics. the United States (Chapter 12), the role that Bitcoin
and other cryptocurrencies may play in the monetary
New to This Edition system (Chapter 13), and the role that technological
improvements in other countries will have on trade and
In addition to updating all the figures and data, we made a welfare for the United States (Chapter 18).
number of other key changes in this edition. They include
the following: Solving Teaching and Learning
• At the end of each chapter, we have added Critical
­Challenges
Thinking Exercises that challenge the student to think Many students who take the principles of economics class
more deeply about the topics and ideas within the have difficulty seeing the relevance of the key concepts of
chapters. economics, including the role of opportunity costs, thinking
• We discuss in Chapter 6 the links between disability on the margin, the benefits of voluntary exchange, the idea
insurance and labor force participation. of diminishing returns, and the distinction between real and
nominal magnitudes. This reduces student preparedness
• We discuss in Chapter 8 the relationships between cit-
and engagement. We explore the five key principles of eco-
ies and economic growth.
nomics we think are most important to students and use the
• We discuss in Chapter 10 the concept of dynamic scor- following resources to engage ­students with the content to
ing and explain how it is used to estimate tax revenues highlight not only how economics is relevant to their lives,
in the federal budget process. but also their future careers.
• We discuss in Chapter 12 the Dodd-Frank regulations
and consider how they will impact the financial sector Make Economics Relevant through
and the economy. Real-World Application
• In Chapter 14, we introduce Jerome Powell, the new Real-world application is crucial to helping students find
Chairman of the Federal Reserve and discuss his prior the relevance in economics. As such, our applications-driven
experience and the challenges he will face in the new text includes over 130 real-world Applications to help stu-
economic environment. dents master essential economics concepts. Here is an exam-

xv

A01_OSUL2200_10_SE_FM.indd 15 16/11/18 12:06 PM

 xvi

ple of our approach from Chapter 4, “Demand, Supply, and 5.9 Repaying a Car Loan. Suppose you borrow money to 5.10 Inflation and Interest Rates. Len buys MP3 music at

Market Equilibrium.” buy a car and must repay $20,000 in interest and prin-
cipal in 5 years. Your current monthly salary is $4,000.
$1 per tune and prefers music now to music later. He is
willing to sacrifice 10 tunes today as long as he gets at
(Related to Application 5 on page 40.) least 11 tunes in a year. When Len loans $50 to Barb
66 P AR T 1
Complete the following table. for a 1-year period, he cuts back his music purchases
by 50 tunes.
Which environment has the lowest real cost of repay-
ing the loan? a. To make Len indifferent about making the
APPLICATION 1 loan, Barb must repay him _________ tunes or
$_________. The implied interest rate is _________
THE LAW OF DEMAND FOR YOUNG SMOKERS Change in Prices and Months of Work to percent.
Wages Monthly Salary Repay $20,000 Loan b. Suppose that over the 1-year period of the loan, all
APPLYING THE CONCEPTS #1: What is the law of demand? Stable $4,000 prices (including the price of MP3 tunes) increase by
inflation: Prices rise 20 percent, and Len and Barb anticipate the price
that increases in state cigarette taxes between 1990 and 2005 by 25% changes. To make Len indifferent about making
resulted in less participation (fewer smokers) and lower fre-
Deflation: Prices drop the loan, Barb must repay him _________ tunes or
quency (fewer cigarettes per smoker).
A change in cigarette taxes in Canada illustrates the sec- by 50% $_________. The implied interest rate is _________
ond effect, the new-smoker effect. in 1994, several provinces percent.
in eastern Canada cut their cigarette taxes in response to the
smuggling of cigarettes from the united States (where taxes are
lower), and the price of cigarettes in the provinces decreased
by roughly 50 percent. Researchers tracked the choices of CRITICAL THINKING
591 youths from the Waterloo Smoking Prevention Program and
As price decreases and we move downward along the market concluded that the lower price increased the smoking rate by
roughly 17 percent. Related to Exercises 1.6 and 1.8. 1. Consider a college graduate who is thinking about 4. Consider a student studying for a biology exam.
demand for cigarettes, the quantity of cigarettes demanded enrolling in law school. How would you compute the Would you expect study time to be subject to dimin-
increases for two reasons. First, people who smoked cigarettes
cost of a 3-year law degree? ishing returns? Suppose productivity is measured as
Stimulate Active Learning with Experiments
at the original price respond to the lower price by smoking
more. Second, some people start smoking.
SOURCES: (1) Anindya Sen and Tony Wirjanto, “Estimating the Impacts of Ciga-
2.Suppose you open a new food cart and must decide the anticipated increase in the exam score. Construct
rette Taxes on Youth Smoking Participation, Initiation, and Persistence: Empirical
in the united States, cigarette taxes vary across states, and how long to remain open. Explain how you would use a numerical example in which the first hour is twice as
Evidence from Canada,” Health Economics 19 (2010), pp. 1264–1280. (2) Chris-
studies of cigarette consumption patterns show that higher economic logic to make the decision. productive as the second hour, which is twice as pro-
Economics Experiment sections are available throughout
topher Carpentera and Philip J. Cook, “Cigarette Taxes and Youth Smoking: New
taxes mean less cigarette consumption by youths. using data Evidence from National, State, and Local Youth Risk Behavior Surveys,” Journal ductive as the third hour, and so on up to five hours
3. At the end of a party, Steph Curry must decide whether
from the youth Risk Behavior Surveys (ySBS), one study shows of Health Economics 27 (2008), pp. 287–299. of study.
the text, rolled
engaging students
a single station-with
to clean up his back yard by tossing discarded napkins
(conveniently into spheres) into 5. the opportunity to perform
Suppose you graduate from college with $40,000 in
ary trash can. Given his formidable 3-point skills, he student-loan debt. Over the 10 years it takes you to

The market demand is negatively sloped, reflecting the law of demand. This is
their own the
could complete economic
task in 3 minutes,analysis.
compared to repay the debt, do you prefer inflation or stable prices?
Suppose that after you repay your debt, you become a
an hour for a groundskeeper. Should he clear the dis-
Each Application has at least one related exercise available
sensible, because if each consumer obeys the law of demand, consumers as a group
will, too. When the price increases from $4 to $8, there is a change in quantity
carded napkins, or hire a groundskeeper? Explain. lender rather than a borrower. How will your prefer-
ences with respect to inflation change?
in MyLab Economics. These exercises can beis the
found
demanded as we move along the demand curve from point f to point c. The move-
ment along the demand curve occurs if the price of pizza inthatthe
only variable has

Application boxeschanged.
MyLab Economics Study Plan
in the eText with an opportunity for
MyLab Economics Concept Check
Economic Experiment
additional practiceThe
Learning Objective 4.2 inSupply
the StudyCurve Plan, and in the end-of- PRODUCING FOLD-ITS

chapter section. The Study

supply sidePlan gives
firms sellstudents
their products to personalized
Describe and explain the law of supply.
On the of a market, consumers. Suppose you Here is a simple economic experiment that takes about 15 minutes to four students, and so on. How does the number of fold-its change as
ask the manager of a firm, “How much of your product are you willing to produce and run. The instructor places a stapler and a stack of paper on a table. Stu- the number of workers increases?
recommendations,topractice opportunities, and learning aids
sell?” The answer is likely to be “it depends.” The manager’s decision about how much
produce depends on many variables, including the following, using pizza as an
dents produce “fold-its” by folding a page of paper in thirds and stapling
both ends of the folded page. One student is assigned to inspect each
to help them stay on track.
example: fold-it to be sure that it is produced correctly. The experiment starts
with a single student, or worker, who has 1 minute to produce as many
MyLab Economics
• The price of the product (e.g., the price per pizza) For additional economic experiments, please visit
fold-its as possible. After the instructor records the number of fold-its www.pearson.com/mylab/economics
• The wage paid to workers
produced, the process is repeated with two students, three students,
• The price of materials (e.g., the price of dough and cheese)
• The cost of capital (e.g., the cost of a pizza oven)
• The state of production technology (e.g., the knowledge used in making pizza)
• Producers’ expectations about future prices
• Taxes paid to the government or subsidies (payments from the government to
firms to produce a product) Single Player Experiments are also available in MyLab 45
quantity supplied
The amount of a product that firms are
Together, these variables determine how much of a product firms are willing to pro-
duce and sell, the quantity supplied. We start our discussion of market supply with Economics to engage students in economic decision-
willing and able to sell. the relationship between the price of a good and the quantity of that good supplied,
making. Experiments are an easy-to-use, fun, and engaging
way to promote active learning and mastery of important
M02_OSUL1098_10_SE_C02.indd 45 15/09/18 3:24 PM

economic concepts. Single-player experiments allow your

M04_OSUL1098_10_SE_C04.indd 66
students to play against virtual players from anywhere at
24/08/2018 18:32

any time so long as they have an Internet connection. Pre-

and post-questions for each experiment are available for
assignment.
Our macroeconomic world is rich with data. We help
students understand the importance of real and current data
through the incorporation of Real-Time-Data Analysis
Exercises in the Macroeconomics volume. The Real-Time-
Data Analysis Exercises, marked with , allow students
and instructors to use the very latest data from FRED. By
completing the exercises, students become familiar with
a key data source, learn how to locate data, and develop
important employability skills in interpreting data.
Students are often best motivated when they see the
relevance of what they’re learning to the world they live
in. The Current News Exercises available to students in
MyLab Economics help demonstrate the real world rele-
vance of these important concepts. Every week, microeco-
nomic and macroeconomic news stories and accompanying
exercises are posted to MyLab Economics. Assignable and
auto-graded, these multi-part exercises ask students to rec-
ognize and apply economic concepts to current events.

A01_OSUL2200_10_SE_FM.indd 16 16/11/18 12:06 PM

 xvii

Show the Big Picture with Five Key Thinking exercise will be available in MyLab Economics
Principles as an essay question. These open-ended, thought-pro-
voking questions challenge students to think more deeply
In Chapter 2, “The Key Principles of Economics,” we intro-
about and apply the key concepts presented within the
duce the following five key principles and then apply them
chapters.
throughout the book:
Illustrating the Key Principles of Economics
1. The Principle of Opportunity Cost. The opportu-
These big picture concepts are also well-illustrated in
nity cost of something is what you sacrifice to get it.
the figures and tables included in the text. Animated
2. The Marginal Principle. Increase the level of an activ- graphs in MyLab Economics help students understand
ity as long as its marginal benefit exceeds its marginal shifts in curves, movements along curves, and changes in
cost. Choose the level at which the marginal benefit equilibrium values. For every figure in the book, there is
equals the marginal cost. also an exercise directly related to that figure in MyLab
3. The Principle of Voluntary Exchange. A voluntary Economics.
exchange between two people makes both people bet-
ter off.
4. The Principle of Diminishing Returns. If we
increase one input while holding the other inputs fixed,
output will increase, but at a decreasing rate.
5. The Real-Nominal Principle. What matters to ­people
is the real value of money or income—its p ­ urchasing
power—not the face value of money or income.

This approach of repeating five key principles gives stu-

dents the big picture—the framework of economic reason-
ing. We make the key concepts unforgettable by using them
repeatedly, illustrating them with intriguing examples, and
giving students many opportunities to practice what they’ve
learned, such as the Concept Checks available in MyLab
Developing Employability Skills
Economics. For students to succeed in a rapidly changing job market,
they need thinking and communication skills. In addition,
Practicing the Principles they need to be informed about career options and the path-
Each section of each learning objective concludes with an way from college student to productive employee. This
online Concept Check that contains one or two multiple book—along with the MyLab—promotes skill development
choice, true/false, or fill-in questions. These checks act as and career awareness.
“speed bumps” that encourage students to stop and check We added a new section to Chapter 1 on page 10,
their understanding of fundamental terms and concepts “Employability: Economic Logic on the Job,” where we
before moving on to the next section. The goal of this dig- discuss how economics promotes the sort of critical think-
ital resource is to help students assess their progress on a ing and communication skills that employers value in their
section-by-section basis, so they can be better prepared for workers. Additionally, we discuss the role of economics in a
homework, quizzes, and exams. liberal-arts education in building thinking skills that make
The end-of-chapter exercises then test student under- a worker responsive to changes in the workplace. We also
standing of the concepts presented in each chapter. These point readers to the U.S. Bureau of Labor Statistics as a
exercises are available in MyLab Economics and include good source of information about career paths that start
multiple-choice, graph drawing, and free-response items, with course work in economics.
many of which are generated algorithmically so that each Economics is the science of choice, and the book
time a student works them, a different variation is presented. clearly illustrates the widespread application of econom-
New to this edition are accessible versions of exercises in ics. Throughout the book we use examples from business,
MyLab Economics that ask students to draw a graph. These government, and other organizations to show the practi-
accessible versions present the same question in a different cal deployment of economics to all sorts of decisions. This
form, which will allow every student the same opportunity approach applies economic concepts with real-world situa-
to practice their knowledge of the key principles explored tions, and thus imparts critical thinking skills to workers in
in the text. all sorts of organizations. We deliver these practical applica-
New to this edition are the Critical Thinking exercises tions in the text itself, as well as in chapter openers and 3 to
included in the end-of-chapter section. Every Critical 5 applications per chapter.

A01_OSUL2200_10_SE_FM.indd 17 16/11/18 12:06 PM

 Tons of ste
f h
400

120

0 50 70
Tons of wheat per year

▲ FIGURE 2.2 Shifting the Production Possibilities Curve

xviii An increase in the quantity of resources or technological innovation in an economy shifts the produc-
tion possibilities curve outward. Starting from point f, a nation could produce more steel (point g),
more wheat (point h), or more of both goods (points between g and h).

APPLICATION 1
ing and revenues and the role of fiscal policy. In Part 5,
DON’T FORGET THE COSTS OF TIME AND INVESTED FUNDS
“Money, Banking, and Monetary Policy” (Chapters 13
APPLYING THE CONCEPTS #1: What is the opportunity cost of running a business?
and 14), we introduce the key elements of both ­monetary
Suppose you have the opportunity to develop a software appli-
theory and policy into our economic models. Part 6,
cation (an app). it would take you 1,000 hours (half a year of work
time) to design and test the app. To develop the app, you need “Inflation, Unemployment, and Economic Policy”
(Chapters 15 through 17), brings the important ques-
a high-powered computer that has a purchase price of $5,000
and can be resold at any time for the same price. What is the
cost of developing the app?
We can use the principle of opportunity cost to compute
the development cost. if you could earn $14 per hour as a jani-
tions of the dynamics of inflation and unemployment
tor, the opportunity cost of your time is the $14,000 you could
earn instead as a janitor. if you have a savings account that earns into our analysis. Finally, the last two chapters in Part 7,
6 percent per year, the opportunity cost of investing $5000 in
the computer for half a year instead of the savings account is “The International Economy” (Chapter 18 and 19), pro-
$150. Adding the opportunity cost of your time to the oppor-
tunity cost of your funds, the cost of developing the app is
$14,150. Related to Exercise 1.7.
vide an in-depth analysis of both international trade and
finance.
The following are a few features of our macroeconom-
ics chapters:

How Is The Book Organized?

M02_OSUL1098_10_SE_C02.indd 31 25/08/2018 17:16
• Flexibility. A key dilemma confronting economics pro-
Chapter 1, “Introduction: What Is Economics?” uses three fessors has always been how much time to devote to
current policy issues—traffic congestion, the trade-offs long-run topics, such as growth and production, versus
from international trade, and the recovery from the finan- short-run topics, such as economic fluctuations and busi-
cial crisis of 2007—to explain the economic way of thinking. ness cycles. Our book is designed to let professors choose.
Chapter 2, “The Key Principles of Economics,” intro- It works like this: To pursue a long-run approach, profes-
duces the five principles we return to throughout the book. sors should initially concentrate on Chapters 1 through
Chapter 3, “Exchange and Markets,” is devoted entirely to 4, followed by Chapters 5 through 8.
exchange and trade. We discuss the fundamental rationale • To focus on economic fluctuations, start with
for exchange and introduce some of the institutions modern Chapters 1 through 4, present Chapter 5, “Measuring
societies developed to facilitate trade. a Nation’s Production and Income,” and Chapter
Students need to have a solid understanding of 6, “Unemployment and Inflation,” and then turn
demand and supply to be successful in the course. Many to Chapter 9, “Aggregate Demand and Aggregate
students have difficulty understanding movement along a Supply.”
curve versus shifts of a curve. To address this difficulty, we • Chapter 11, “The Income-Expenditure Model,” is self-
developed an innovative way to organize topics in Chapter contained, so instructors can either skip it completely
4, “Demand, Supply, and Market Equilibrium.” We exam- or cover it as a foundation for aggregate demand.
ine the law of demand and changes in quantity demanded,
• Long Run. Throughout most of the 1990s, the
the law of supply and changes in quantity supplied, and
U.S. economy performed very well—low infla-
then the notion of market equilibrium. After students
tion, low unemployment, and rapid economic
have a firm grasp of equilibrium concepts, we explore the
growth. This robust performance led to economists’
effects of changes in demand and supply on equilibrium
increasing interest in trying to understand the pro-
prices and quantities. You can present either macroeco-
cesses of economic growth. Our discussion of eco-
nomics or microeconomics chapters first, depending on
nomic growth in Chapter 8, “Why Do Economies
your preference.
Grow?” addresses the fundamental question of
Summary of the Macroeconomics Chapters how long-term living standards are determined and
Part 2, “The Basic Concepts of Macroeconomics” (Chapters why some countries prosper while others do not.
5 and 6), introduces students to the key concepts—GDP, This is the essence of economic growth. As Nobel
inflation, and unemployment—that are used throughout the Laureate Robert E. Lucas, Jr., once wrote, “Once
text and in everyday economic discussion. The two chapters you start thinking about growth, it is hard to think
in this section provide the building blocks for the rest of the of ­anything else.”
book. Part 3, “The Economy in the Long Run” (Chapters 7 • Short Run. The great economic expansion of the
and 8), analyzes how the economy operates at full employ- 1990s came to an end in 2001, as the economy started
ment and explores the causes and consequences of economic to contract. The recession beginning in 2007 was the
growth. worst downturn since World War II. Difficult eco-
Next we turn to the short run. We begin the discus- nomic times remind us that macroeconomics is also
sion of business cycles, economic fluctuations, and the concerned with understanding the causes and -con-
role of government in Part 4, “Economic Fluctuations sequences of economic fluctuations. Why do econo-
and Fiscal Policy” (Chapters 9 through 12). We devote mies experience recessions and depressions, and what
an entire chapter to the structure of government spend- steps can policymakers take to stabilize the economy

A01_OSUL2200_10_SE_FM.indd 18 16/11/18 12:06 PM

 xix

and ease the devastation people suffer from them? should target inflation or other objectives, and whether
This has been a constant theme of macroeconomics income or consumption should be taxed.
throughout its entire history and is covered exten- • International Issues. While international applications
sively in the text. occur throughout the text, we devote two chapters spe-
• Policy. Macroeconomics is a policy-oriented subject, cifically to international trade and finance. Chapter 18
and we treat economic policy in virtually every chapter. develops the theory of international trade and discusses
We discuss both important historical and more recent a wide range of policy topics including protectionism
macroeconomic events in conjunction with the theory. and what role international trade agreements play in
In addition, we devote Chapter 17, “Macroeconomic today’s world. In Chapter 19, we study international
Policy Debates,” to three important policy topics that finance. We discuss how exchange rates are deter-
recur frequently in macroeconomic debates: the role mined, our experiences with fixed and flexible exchange
of government deficits, whether the Federal Reserve rates, and how international financial crises develop.

Instructor Teaching Resources

This program comes with the following teaching resources.

Supplements available to instructors at

www.pearsonhighered.com Features of the Supplement

Instructor’s Manual • Chapter Summary: a bulleted list of key topics in the chapter
Authored by Jeff Phillips of Colby-Sawyer College • Learning Objectives
• Approaching the Material; student-friendly examples to introduce the chapter
• Chapter Outline: summary of definitions and concepts
• Teaching Tips on how to encourage class participation
• Summary and discussion points for the Applications in the main text
• New Applications and discussion questions
• Solutions to all end-of-chapter exercises.
Test Bank 6,000 multiple-choice, true/false, short-answer, and graphing questions. Test questions
Authored by Brian Rosario of American River College are annotated with the following information:
• Difficulty: 1 for straight recall, 2 for some analysis, 3 for complex analysis
• Type: multiple-choice, true/false, short-answer, essay
• Topic: the term or concept the question supports
• Learning outcome
• AACSB
• Page number in the text.
Computerized TestGen TestGen allows instructors to:
• Customize, save, and generate classroom tests
• Edit, add, or delete questions from the Test Bank
• Analyze test results
• Organize a database of tests and student results.
PowerPoints Slides include all the graphs, tables, and equations in the textbook.
Authored by Paul Holmes of Ashland University PowerPoints meet accessibility standards for students with disabilities. Features
include, but not limited to:
• Keyboard and Screen Reader access
• Alternative text for images
• High color contrast between background and foreground colors

A01_OSUL2200_10_SE_FM.indd 19 16/11/18 12:06 PM

 xx

ACKN O WL E D G M E N T S Colombia
A long road exists between the initial vision of an innova- Michael Jetter, Universidad EIFIT
tive principles text and the final product. Along our journey
we participated in a structured process to reach our goal. Colorado
We wish to acknowledge the assistance of the many people Steve Call, Metropolitan State College of Denver
who participated in this process.
Connecticut
Reviewers of Previous Editions John A. Jascot, Capital Community Technical College
Stephen Rubb, Sacred Heart University
Alabama
Jim Payne, Calhoun Community College Delaware
James Swofford, University of South Alabama Lawrence Stelmach, Delaware Valley College

Alaska Florida
Paul Johnson, University of Alaska, Anchorage Irma de Alonso, Florida International University
Jay Bhattacharya, Okaloosa-Walton Community College
Arizona Edward Bierhanzl, Florida A&M University
Basil Al-Hashimi, Mesa Community College, Red Mountain Eric P. Chiang, Florida Atlantic University
Pete Mavrokordatos, Tarrant County College/University of Phoenix Martine Duchatelet, Barry University
Evan Tanner, Thunderbird, The American Graduate School George Greenlee, St. Petersburg College, Clearwater
of International Management Martin Markovich, Florida A&M University
Donald Wells, University of Arizona Thomas McCaleb, Florida State University
Barbara Moore, University of Central Florida
California Stephen Morrell, Barry University
Antonio Avalos, California State University, Fresno Carl Schmertmann, Florida State University
Collette Barr, Santa Barbara Community College Garvin Smith, Daytona Beach Community College
T. J. Bettner, Orange Coast College Noel Smith, Palm Beach Community College
Peter Boelman-Lopez, Riverside Community College Michael Vierk, Florida International University
Matthew Brown, Santa Clara University Joseph Ward, Broward Community College, Central
Jim Cobb, Orange Coast College Virginia York, Gulf Coast Community College
John Constantine, Sacramento City College Andrea Zanter, Hillsborough Community College
Peggy Crane, San Diego State University
Albert B. Culver, California State University, Chico Georgia
Jose L. Esteban, Palomar College Scott Beaulier, Mercer College
Gilbert Fernandez, Santa Rosa Junior College Ashley Harmon, Southeastern Technical College
E. B. Gendel, Woodbury University Steven F. Koch, Georgia Southern University
Charles W. Haase, San Francisco State University L. Wayne Plumly, Jr., Valdosta State University
John Henry, California State University, Sacramento Greg Trandel, University of Georgia
George Jensen, California State University, Los Angeles
Janis Kea, West Valley College Hawaii
Rose Kilburn, Modesto Junior College
Philip King, San Francisco State University Barbara Ross-Pfeiffer, Kapiolani Community College
Anthony Lima, California State University, Hayward
Bret Mcmurran, Chaffey College Idaho
Jon J. Nadenichek, California State University, Northridge Charles Scott Benson, Jr., Idaho State University
Alex Obiya, San Diego City College Tesa Stegner, Idaho State University
Jack W. Osman, San Francisco State University
Jay Patyk, Foothill College Illinois
Stephen Perez, California State University, Sacramento Diane Anstine, North Central College
Ratha Ramoo, Diablo Valley College Rosa Lea Danielson, College of DuPage
Greg Rose, Sacramento City College Sel Dibooglu, Southern Illinois University
Kurt Schwabe, University of California, Riverside Linda Ghent, Eastern Illinois University
Terri Sexton, California State University, Sacramento Gary Langer, Roosevelt University
David Simon, Santa Rosa Junior College Nampeang Pingkarawat, Chicago State University
Xiaochuan Song, San Diego Mesa College Dennis Shannon, Belleville Area College
Ed Sorensen, San Francisco State University Chuck Sicotte, Rock Valley College
Susan Spencer, Santa Rosa Junior College Leticia Starkov, Elgin Community College
Linda Stoh, Sacramento City College
Rodney Swanson, University of California, Los Angeles Indiana
Daniel Villegas, California Polytechnic State University John L. Conant, Indiana State University

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 xxi

Mousumi Duttaray, Indiana State University Mississippi

Robert B. Harris, Indiana Univ. Purdue Univ. Indianapolis
Billy L. Carson II, Itawamba Community College
James T. Kyle, Indiana State University
Arlena Sullivan, Jones County Junior College
Virginia Shingleton, Valparaiso University
Missouri
Iowa
Duane Eberhardt, Missouri Southern State College
Dale Borman, Kirkwood Community College David Gillette, Truman State University
Jonathan O. Ikoba, Scott Community College Brad Hoppes, Southwest Missouri State University
Saul Mekies, Kirkwood Community College, Iowa City Denise Kummer, St. Louis Community College
Steven M. Schamber, St. Louis Community College, Meramec
Kansas
Elias Shukralla, St. Louis Community College, Meramec
Carl Parker, Fort Hays State University Keith Ulrich, Valencia Community College
James Ragan, Kansas State University George Wasson, St. Louis Community College, Meramec
Tracy M. Turner, Kansas State University
Nebraska
Kentucky Debbie Gaspard, Southeast Community College
David Eaton, Murray State University Theodore Larsen, University of Nebraska, Kearney
John Robertson, University of Kentucky Timothy R. Mittan, Southeast Community College
Stanley J. Peters, Southeast Community College
Louisiana Brock Williams, Metropolitan Community College
John Payne Bigelow, Louisiana State University
Sang Lee, Southeastern Louisiana University Nevada
Richard Stahl, Louisiana State University Stephen Miller, University of Nevada, Las Vegas
Charles Okeke, College of Southern Nevada
Maine
George Schatz, Maine Maritime Academy New Jersey
Len Anyanwu, Union County College
Maryland Augustine Boakye, Essex County College
Carey Borkoski, Anne Arundel Community College Richard Comerford, Bergen Community College
Gretchen Mester, Anne Arundel Community College John Graham, Rutgers University
Irvin Weintraub, Towson State University Paul C. Harris, Jr., Camden County College
Calvin Hoy, County College of Morris
Massachusetts Taghi Ramin, William Paterson University
Hans Despain, Nichols College Brian de Uriarte, Middlesex County College
Brian Deuriarte, Middlesex Community College
Dan Georgianna, University of Massachusetts, Dartmouth New Hampshire
James E. Hartley, Mount Holyoke College Jeff Phillips, Colby-Sawyer College
Marlene Kim, University of Massachusetts, Boston
Mark Siegler, Williams College New Mexico
Alex Taylor, Suffolk University Carl Enomoto, New Mexico State University
Gilbert Wolfe, Middlesex Community College
New York
Michigan Farhad Ameen, State University of New York, Westchester County
Zeina Alsalman, Oakland University Community College
Christine Amsler, Michigan State University Karijit K. Arora, Le Moyne College
Bharati Basu, Central Michigan University Alex Azarchs, Pace University
Norman Cure, Macomb Community College Kathleen K. Bromley, Monroe Community College
Susan Linz, Michigan State University Barbara Connelly, Westchester Community College
Scanlon Romer, Delta College George Frost, Suffolk County Community College
Robert Tansky, St. Clair County Community College Susan Glanz, St. John’s University
Wendy Wysocki, Monroe Community College Serge S. Grushchin, ASA College of Advanced Technology
Robert Herman, Nassau Community College
Minnesota Christopher Inya, Monroe Community College
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Ihsuan Li, Minnesota State University, Mankato Marianne Lowery, Erie Community College
Mike Mcilhon, Augsburg College Jeannette Mitchell, Rochester Institute of Technology
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A01_OSUL2200_10_SE_FM.indd 21 16/11/18 12:06 PM

Discovering Diverse Content Through
Random Scribd Documents
You are assured that, in order not to violate the constantly changing
order, which was yesterday established by some men in some corner
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men, who violate the eternal, invariable order of the universe, which
was established by God, or by reason. Can that be?
And so you cannot help but meditate on your position as a
landowner, merchant, judge, emperor, president, minister, priest,
soldier, which is connected with oppression, violence, deception,
tortures, and murders, and you cannot help but recognize their
illegality.
I do not say that, if you are a landowner, you should at once give
your land to the poor; if you are a capitalist, you should at once give
your money, your factory to the labourers; if you are a king, a
minister, an official, a judge, a general, you should at once give up
your advantageous position; if you are a soldier (that is, occupy a
position on which all violence is based), you should, in spite of all
the dangers of a refusal to obey, at once throw up your position.
If you do so, you will do the very best possible; but it may happen—
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Suddenly, because just such miserable, erring people like yourself
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evil which you have done to others and, above all, to yourself, losing
for nothing the life which is given to you but once in a whole
eternity, without having done the one thing which you ought
unquestionably to have done.
However simple and old this may be, and however much we may
have stupefied ourselves by hypocrisy and the auto-suggestion
resulting from it, nothing can destroy the absolute certainty of that
simple and clear truth that no external efforts can safeguard our life,
which is inevitably connected with unavoidable sufferings and which
ends in still more unavoidable death, that may come to each of us at
any moment, and that, therefore, our life can have no other
meaning than the fulfilment, at any moment, of what is wanted from
us by the power that sent us into life and gave us in this life one
sure guide,—our rational consciousness.
And so this power cannot want from us what is irrational and
impossible,—the establishment of our temporal, carnal life, the life of
society or of the state. This power demands of us what alone is
certain and rational and possible,—our serving the kingdom of God,
that is, our coöperation in the establishment of the greatest union of
everything living, which is possible only in the truth, and, therefore,
the recognition of the truth revealed to us, and the profession of it,
precisely what alone is always in our power.
"Seek ye the kingdom of God and His righteousness and all these
things shall be added unto you." The only meaning of man's life
consists in serving the world by coöperating in the establishment of
the kingdom of God; but this service can be rendered only through
the recognition of the truth, and the profession of it, by every
separate individual.
"The kingdom of God cometh not with observation: neither shall
they say, Lo here! or, Lo there! for, behold, the kingdom of God is
within you."
Yásnaya Polyána, May 14, 1893.
 CHRISTIANITY AND PATRIOTISM
1894

CHRISTIANITY AND PATRIOTISM

The Franco-Russian celebrations which took place in France, in the
month of October of last year, provoked in me, as no doubt in many
other people, at first a feeling of amusement, then of perplexity, and
at last of indignation, which I intended to express in a short article in
a periodical; but, the more I dwelt on the chief causes of this
strange phenomenon, the more did I arrive at the considerations
which I now offer to my readers.

I.
Russians and Frenchmen have lived for many centuries, knowing one
another, entering with one another at times into friendly, more often,
I am sorry to say, into very hostile relations, which have been
provoked by their governments; suddenly, because two years ago a
French squadron arrived at Kronstadt, and the officers of the
squadron, upon landing, ate and drank a lot of wine in various
places, hearing and uttering upon these occasions many lying and
stupid words, and because, in the year 1893, a similar Russian
squadron arrived at Toulon, and the officers of the Russian squadron
ate and drank a lot in Paris, hearing and uttering upon that occasion
more lying and stupid words than before, it happened that not only
the men who ate, drank, and talked, but even those who were
present, and even those who were not present, but only heard and
read of it in newspapers, all these millions of Russians and
Frenchmen suddenly imagined that they somehow were particularly
in love with one another, that is, that all the French loved all the
Russians, and all the Russians loved all the French.
These sentiments were last October expressed in France in a most
unusual manner.
Here is the way the reception of the Russian sailors is described in
the Rural Messenger, a newspaper which collects its information
from all the others:
"At the meeting of the Russian and French vessels, both, besides the
salvos of guns, greeted one another with hearty, ecstatic shouts,
'Hurrah,' 'Long live Russia,' 'Long live France!'
"These were joined by bands of music (which came on many private
steamers), playing the Russian hymn, 'God save the Tsar,' and the
French Marseillaise; the public on the private vessels waved their
hats, flags, handkerchiefs, and bouquets; on many barques there
were peasants with their wives and children, and they all had
bouquets in their hands, and even the children waved the bouquets
and shouted at the top of their voices, 'Vive la Russie!' Our sailors,
upon seeing such national transport, were unable to restrain their
tears....
"In the harbour all the ships-of-war which were then at Toulon were
drawn out in two lines, and our squadron passed between them; in
front was the ironclad of the admiralty, and this was followed by the
rest. There ensued a most solemn minute.
"On the Russian ironclad, fifteen salvos were fired in honour of the
French squadron, and a French ironclad replied with double the
number, with thirty salvos. From the French vessels thundered the
sounds of the Russian hymn. The French sailors climbed up on the
sail-yards and masts; loud exclamations of greeting proceeded
uninterruptedly from the two squadrons and from the private
vessels; the caps of the sailors, the hats and handkerchiefs of the
public,—all were thrown up triumphantly in honour of the dear
guests. On all sides, on the water and on the shore, there boomed
one common call, 'Long live Russia! Long live France!'
"In conformity with naval law, Admiral Avelán and the officers of his
staff landed, in order to greet the local authorities. On the quay the
Russian sailors were met by the chief marine staff of France and the
superior officers of the port of Toulon. There ensued a universal
friendly hand-shaking, accompanied by the boom of cannon and the
ringing of bells. A band of marine music played the hymn 'God save
the Tsar,' drowned by the thunderous shouts of the public, 'Long live
the Tsar! Long live Russia!' These exclamations blended into one
mighty sound, which drowned the music and the salvos from the
guns.
"Eye-witnesses declare that at this moment the enthusiasm of the
innumerable mass of people reached its highest limits, and that it is
impossible to express in words with what sensations the hearts of all
those present were filled. Admiral Avelán, with bared head, and
accompanied by Russian and French officers, directed his steps to
the building of the Marine Office, where the French minister of
marine was waiting for him.
"In receiving the admiral, the minister said: 'Kronstadt and Toulon
are two places which bear witness to the sympathy between the
Russian and the French nations; you will everywhere be met as dear
friends. The government and all of France welcome you upon your
arrival and that of your companions, who represent a great and
noble nation.'
"The admiral replied that he was not able to express all his
gratitude. 'The Russian squadron and all of Russia,' he said, 'will
remember the reception you have given us.'
"After a short conversation, the admiral, saying good-bye to the
minister, a second time thanked him for the reception, and added, 'I
do not want to part from you before pronouncing those words which
are imprinted in all Russian hearts: "Long live France!"'" (Rural
Messenger, 1893, No. 41.)
Such was the meeting at Toulon. In Paris the meeting and the
celebrations were more remarkable still.
Here is the way the meeting in Paris was described in the
newspapers: "All eyes were directed to the Boulevard des Italiens,
whence the Russian sailors were to appear. Finally the boom of a
whole hurricane of exclamations and applauses is heard in the
distance. The boom grows stronger and more audible. The hurricane
is apparently approaching. A mighty motion takes place on the
square. Policemen rush forward to clear a path toward the Cercle
Militaire, but this is by no means an easy task. There is an incredible
crush and pressure in the crowd.... Finally the head of the
procession appears in the square. At the same moment a deafening
shout, 'Vive la Russie! Vive les Russes!' rises over it. All bare their
heads, the public, packed close in the windows, on the balconies,
perched even on the roofs, wave handkerchiefs, flags, and hats,
applaud madly, and from the windows of the upper stories throw
clouds of small many-coloured cockades. A whole sea of
handkerchiefs, hats, and flags surges above the heads of the crowd
in the square: 'Vive la Russie! Vive les Russes!' shouts this mass of
one hundred thousand people, trying to get a look at the dear
guests, extending their hands to them, and in every way expressing
their sympathies" (New Time).
Another correspondent writes that the transport of the crowd
bordered on delirium. A Russian publicist, who was in Paris at that
time, describes this entrance of the sailors in the following manner:
"They tell the truth,—it was an incident of world-wide import,
wondrous, touching, soul-stirring, making the heart quiver with that
love which discerns the brothers in men, and which detests
bloodshed and concomitant acts of violence, the tearing away of the
children from their beloved mother. I have been in some kind of an
intoxication for several hours. I felt so strange, and even so weak, as
I stood at the station of the Lyons Railway, among the
representatives of the French administration in their gold-
embroidered uniforms, among the members of the municipality in
full dress, and heard the shouts, 'Vive la Russie! Vive le Czar!' and
our national hymn, which was played several times in succession.
Where am I? What has happened? What magic stream has united all
this into one feeling, into one mind? Does one not feel here the
presence of the God of love and brotherhood, the presence of
something higher, something ideal, which descends upon men only
in lofty moments? The heart is so full of something beautiful and
pure and exalted, that the pen is not able to express it all. Words
pale before what I saw, what I felt. It is not transport,—the word is
too banal,—it is something better than transport. It is more
picturesque, profounder, more joyous, more varied. It is impossible
to describe what happened at the Cercle Militaire, when Admiral
Avelán appeared on the balcony of a second story. Words will not tell
anything here. During the Te Deum, when the choristers sang in the
church 'Save, O Lord, thy people,' there burst through the open door
the solemn sounds of the Marseillaise, which was played in the
street by an orchestra of wind-instruments. There was something
astounding and inexpressible in the impression conveyed" (New
Time, October, 1893).

II.
After arriving in France, the Russian sailors for two weeks went from
one celebration to another, and in the middle or at the end of every
celebration they ate, drank, and talked; and the information as to
what they ate and drank on Wednesday and where and what on
Friday, and what was said upon that occasion, was wired home and
conveyed to the whole of Russia. The moment some Russian captain
drank the health of France, this at once became known to the whole
world, and the moment the Russian admiral said, "I drink to fair
France!" these words were immediately borne over the whole world.
But more than that: the scrupulousness of the newspapers was such
that they reported not only the toasts, but even many dinners, with
the cakes and appetizers which were used at these dinners.
Thus it said in one issue of a newspaper that the dinner was "an
artistic production:"
 "Consommé de volailles, petits pâtés
Mousse de hommard parisienne
Noisette de bœuf à la béarnaise
Faisans à la Périgord
Casseroles de truffes au champagne
Chaufroid de volailles à la Toulouse
Salade russe
Croute de fruits toulonaise
Parfait à l'ananas
Desserts"

In the next number it said:

"In a culinary sense the dinner left nothing to be desired. The menu
consisted of the following:

"Potage livonien et St. Germain

Zéphyrs Nantua
Esturgeon braisé moldave
Selle de daguet grand veneur,"

and so forth.
The next number described another menu. With every menu a
detailed description was given of the wines which the fêted men
consumed,—such and such "voodka" such and such Bourgogne
vieux, Grand Moët, and so forth. In an English paper there was an
account of all the intoxicants consumed by the celebrators. This
amount is so enormous that it is doubtful if all the drunkards of
Russia and of France could have drunk so much in so short a time.
They reported also the speeches which were made by the
celebrators, but the menus were more varied than the speeches.
The speeches consisted invariably of the same words in all kinds of
combinations and permutations. The meaning of these words was
always one and the same: "We love one another tenderly, we are in
transport, because we have so suddenly fallen in love with one
another. Our aim is not war and not revanche, and not the return of
provinces taken, but only peace, the benefaction of peace, the
security of peace, the rest and peace of Europe. Long live the
Emperor of Russia and the empress,—we love them and we love
peace. Long live the president of the republic and his wife,—we love
them, too, and we love peace. Long live France, Russia, their fleets,
and their armies. We love the army, too, and peace, and the chief of
the squadron." The speeches generally ended, as in couplets, with
the words, "Toulon, Kronstadt," or "Kronstadt, Toulon." And the
names of these places, where so much food was eaten and so many
kinds of wine were consumed, were pronounced like words
reminding one of the loftiest, most valorous of acts of the
representatives of both nations, words after which there was nothing
else to be said, because everything was comprehensible. "We love
one another, and we love peace. Kronstadt, Toulon!" What else can
be added to this? Especially with the accompaniment of solemn
music, playing simultaneously two hymns, one—praising the Tsar
and asking God for all kinds of benefactions for him, and the other—
cursing all kings and promising their ruin.
The men who expressed their sentiments of love particularly well
received decorations and rewards; other men for the same services,
or simply out of a superabundance of feelings, were given the
strangest and most unexpected presents,—thus the Emperor of
Russia received from the French squadron some kind of a golden
book, in which, I think, nothing was written, and if there was, it was
something that nobody needed to know, and the chief of the
Russian squadron received, among other presents, a still more
remarkable object, an aluminum plough, covered with flowers, and
many other just as unexpected presents.
Besides, all these strange acts were accompanied by still stranger
religious ceremonies and public prayers, which, it would seem, the
French had long ago outlived. Since the days of the Concordat there
had hardly been offered so many prayers as in that short time. All
the French suddenly became unusually pious, and carefully hung up
in the rooms of the Russian sailors those very images which they
had just as carefully removed from their schools, as being harmful
tools of superstition, and they kept praying all the time. Cardinals
and bishops everywhere prescribed prayers, and themselves prayed,
uttering the strangest prayers. Thus the Bishop of Toulon at the
launching of the ironclad Joriguiberi prayed to the God of peace,
making people feel, however, that, if it came to a pinch, he could
address also the God of war.
"What her fate will be," said the bishop, in reference to the ironclad,
"God alone knows. No one knows whether she will belch forth death
from her appalling bosom. But if, invoking now the God of peace, we
should later have occasion to invoke the God of war, we are firmly
convinced that the Joriguiberi will go forth side by side with the
mighty boats whose crews have this day entered into such a close
fraternal union with our own. Far from us be such a prospect, and
may the present festivity leave nothing but a peaceful recollection,
like the recollection of the Grand Duke Constantine, which was
present here (in 1857) at the launching of the ship Quirinal, and may
the friendship of France and of Russia make these two nations the
guardians of peace."
In the meantime tens of thousands of telegrams flew from Russia to
France, and from France to Russia. French women greeted Russian
women. Russian women expressed their gratitude to the French
women. A troupe of Russian actors greeted some French actors, and
the French actors informed them that they harboured deeply in their
hearts the greeting of the Russian actors. Some Russian candidates
for judicial positions, who served in a Circuit Court of some town or
other, expressed their enthusiasm for the French nation. General So
and So thanked Madame So and So, and Madame So and So assured
General So and So of her sentiments for the Russian nation; Russian
children wrote verses of welcome to French children, and the French
children answered in verse and in prose; the Russian minister of
education assured the French minister of education of the
sentiments of sudden love for the French, which were experienced
by all the children, scholars, and authors subject to his ministry;
members of a society for the protection of animals expressed their
ardent attachment for the French, and so did the Council of the City
of Kazán.
The canon of the eparchy of Arras informed his Worship, the chief
priest of the Russian court clergy, that he could affirm that deep in
the hearts of all the French cardinals and archbishops there was
imprinted a love for Russia and his Majesty Alexander III. and his
most august family, and that the Russian and French clergy
professed almost the selfsame religion and equally honoured the
Virgin; to which his Worship, the chief priest, replied that the prayers
of the French clergy for the most august family reëchoed joyfully in
the hearts of the whole Russian Tsar-loving family, and that, since
the Russian people also worshipped the Holy Virgin, it could count
on France in life and in death. Almost the same information was
vouchsafed by different generals, telegraph operators, and dealers in
groceries. Everybody congratulated somebody on something and
thanked somebody for something.
The excitement was so great that the most unusual acts were
committed, but no one observed their unusual character, and all, on
the contrary, approved of them, went into ecstasies over them, and,
as though fearing lest they should be too late, hastened to commit
similar acts, so as not to fall behind the rest. If protests were
expressed in words and in writing and in printing against these mad
acts, pointing out their irrationality, such protests were concealed or
squelched.[17]
To say nothing of all the millions of work-days which were wasted on
these festivities, of the wholesale drunkenness of all the participants,
which was encouraged by all the powers, to say nothing of the
insipidity of the speeches made, the maddest and most cruel things
were done, and no one paid any attention to them.
Thus several dozens of men were crushed to death, and no one
found it necessary to mention this fact. One correspondent wrote
that a Frenchman told him at a ball that now there could hardly be
found a woman in Paris who would not be false to her duties, in
order to satisfy the wishes of some Russian sailor—and all this
passed by unnoticed, as something that ought to be. There occurred
cases of distinct madness. Thus one woman, dressing herself in a
garment of the colours of the Franco-Russian flags, waited for the
sailors and, exclaiming, "Vive la Russie!" jumped from the bridge
into the river and was drowned.
Women in general played in these festivities a prominent part and
even guided the men. Besides throwing flowers and all kinds of
ribbons, and offering presents and addresses, French women made
for the Russian sailors and kissed them; some of them for some
reason brought their children to them, to be kissed by them, and
when the Russian sailors complied with their wish, all persons
present went into ecstasies and wept.
This strange excitement was so infectious that, as one
correspondent tells, an apparently absolutely sound Russian sailor,
after two days of contemplation of what took place around him, in
the middle of the day jumped from the ship into the sea and,
swimming, shouted, "Vive la France!" When he was taken aboard
and asked why he had done so, he replied that he had made a vow
that in honour of France he would swim around the ship.
Thus the undisturbed excitement grew and grew, like a ball of rolling
wet snow, and finally reached such dimensions that not only the
persons present, not only predisposed, weak-nerved, but even
strong, normal men fell a prey to the general mood and became
abnormally affected.
I remember how I, absent-mindedly reading one of these
descriptions of the solemnity of the reception of the sailors, suddenly
felt a feeling, akin to meekness of spirit, even a readiness for tears,
communicated to me, so that I had to make an effort to overcome
this feeling.
 Malévannians
Photogravure from Photograph

III.
Lately Sikórski, a professor of psychiatry, described in the Kíev
University Record the psychopathic epidemic, as he calls it, of the
Malévannians, as manifested in a few villages of Vasilkóv County of
the Government of Kíev. The essence of this epidemic, as Mr.
Sikórski, the investigator of it, says, consisted in this, that certain
persons of these villages, under the influence of their leader, by the
name of Malévanny, came to imagine that the end of the world was
at hand, and so, changing their whole mode of life, began to
distribute their property, to dress up, and to eat savoury food, and
stopped working. The professor found the condition of these men to
be abnormal. He says: "Their unusual good nature frequently passed
into exaltation, a joyous condition, which was devoid of external
motives. They were sentimentally disposed: excessively polite,
talkative, mobile, with tears of joy appearing easily and just as easily
disappearing. They sold their necessaries, in order to provide
themselves with umbrellas, silk kerchiefs, and similar objects, and at
that the kerchiefs served them only as ornaments for their toilet.
They ate many sweet things. They were always in a cheerful mood,
and they led an idle life,—visited one another, walked together....
When the obviously absurd character of their refusal to work was
pointed out to them, one every time heard in reply the stereotyped
phrase, 'If I want to, I shall work, and if I do not want to, why
should I compel myself?'"
The learned professor considers the condition of these men a
pronounced case of a psychopathic epidemic, and, advising the
government to take certain measures against its spread, ends his
communication with the words: "Malévannism is the wail of a
morbidly sick population and a supplication to be freed from liquor
and to have education and sanitary conditions improved."
But if Malévannism is the wail of a morbidly sick population and a
supplication to be freed from liquor and from harmful social
conditions, then this new disease, which has appeared in Paris and
has with alarming rapidity embraced a great part of the city
population of France and almost the whole of governmental and
cultured Russia, is just such an alarming wail of a morbid population
and just such a supplication to be freed from liquor and from false
social conditions.
And if we must admit that the psychopathic suffering of
Malévannism is dangerous, and that the government has done well
to follow the professor's advice and remove the leaders of
Malévannism by confining some of them in lunatic asylums and
monasteries and by deporting others to distant places, how much
more dangerous must be considered to be this new epidemic, which
appeared in Toulon and Paris and from there spread over the whole
of France and of Russia, and how much more necessary it is, if not
for the government, at least for society, to take decisive measures
against the spread of such epidemics!
The resemblance between the diseases is complete. There is the
same good nature, passing into causeless and joyful exaltation, the
same sentimentality, excessive politeness, talkativeness, the same
constant tears of meekness of spirit, which come and go without
cause, the same festive mood, the same walking for pleasure and
visiting one another, the same dressing up in the best clothes, the
same proneness for sweet food, the same senseless talks, the same
idleness, the same singing and music, the same leadership of the
women, and the same clownish phase of attitudes passionelles,
which Mr. Sikórski has noticed in the case of the Malévannians; that
is, as I understand this word, those different, unnatural poses, which
men assume during solemn meetings, receptions, and after-dinner
speeches.
The resemblance is complete. The only difference is this,—and the
difference is very great for the society in which these phenomena
are taking place,—that there it is the aberration of a few dozen
peaceful, poor village people, who live on their small means and,
therefore, cannot exert any violence on their neighbours, and who
infect others only by the personal and oral transmission of their
mood, while here it is the aberration of millions of people, who
possess enormous sums of money and means for exerting violence
against other people,—guns, bayonets, fortresses, ironclads,
melinite, dynamite, and who, besides, have at their command the
most energetic means for the dissemination of their madness, the
post, the telegraph, an enormous number of newspapers, and all
kinds of publications, which are printed without cessation and carry
the infection to all the corners of the globe. There is also this
difference, that the first not only do not get themselves drunk, but
even do not use any intoxicating liquor, while the second are
constantly in a state of semi-intoxication, which they never stop
maintaining in themselves. And so for a society in which these
phenomena are taking place, there is the same difference between
the Kíev epidemic, during which, according to Mr. Sikórski's
information, it does not appear that they commit any violence or
murders, and the one which made its appearance in Paris, where in
one procession twenty women were crushed to death, as there is
between a piece of coal, which has leaped out of the stove and is
glowing on the floor without igniting it, and a fire which is already
enveloping the door and walls of the house. In the worst case the
consequences of the Kíev epidemic will consist in this, that the
peasants of one millionth part of Russia will spend what they have
earned by hard labour, and will be unable to pay the Crown taxes;
but the consequences from the Toulon-Paris epidemic, which is
embracing men who are in possession of a terrible power, of vast
sums of money, and of implements of violence and of the
dissemination of their madness, can and must be terrible.

IV.
We can with pity listen to the delirium of a feeble, defenceless, crazy
old man, in his cap and cloak, and even not contradict him, and
even jestingly agree with him; but when it is a whole crowd of sound
insane people, who have broken away from their confinement, and
these people bristle from head to foot with sharp daggers, swords,
and loaded revolvers, and madly flourish these death-dealing
weapons, we can no longer agree with them, and we cannot be at
rest even for a minute. The same is true of that condition of
excitement, provoked by the French celebrations, in which Russian
and French society finds itself at the present time.
It is true, in all the speeches, in all the toasts, pronounced at these
celebrations, in all the articles concerning these celebrations, they
never stopped talking of the importance of everything which was
taking place for the guarantee of peace. Even the advocates of war
did not speak of hatred of those who snatch away provinces, but of
some kind of a love which somehow hates.
But we know of the slyness of all men who are mentally diseased,
and it is this most persistent repetition of our not wanting war, but
peace, and the reticence regarding that of which all think, that form
a most menacing phenomenon.
In answering a toast at a dinner given in the Palace of the Elysées,
the Russian ambassador said: "Before drinking a toast to which will
respond from the depth of their hearts, not only those who are
within these walls, but even those—and, that, too, with equal force
—whose hearts near by and far away, at all the points of great, fair
France, as also in all of Russia, at the present moment are beating in
unison with ours,—permit me to offer to you the expression of our
profoundest gratitude for the words of welcome which were
addressed by you to our admiral, whom our Tsar has charged with
the mission of paying back your visit at Kronstadt. Considering the
high importance which you enjoy, your words characterize the true
significance of the magnificent peaceful festivities, which are
celebrated with such wonderful unanimity, loyalty, and sincerity."
The same unjustifiable mention of peace is found in the speech of
the French president: "The ties of love, which unite Russia and
France," he said, "and which two years ago were strengthened by
touching manifestations, of which our fleet was the object at
Kronstadt, become tighter and tighter with every day, and the
honourable exchange of our amicable sentiments must inspire all
those who take to heart the benefactions of peace, confidence, and
security," and so forth.
Both speeches quite unexpectedly and without any cause refer to
the benefactions of peace and to peaceful celebrations.
The same occurs in the telegrams which were exchanged between
the Emperor of Russia and the President of France. The Emperor of
Russia telegraphed:
"Au moment où l'escadre russe quitte la France, il me tient à cœur
de vous exprimer combien je suis touché et reconnaissant de
l'accueil chaleureux et splendide, que mes marins ont trouvé partout
sur le sol français. Les témoignages de vive sympathie qui se sont
manifestés encore une fois avec tant d'éloquence, joindront un
nouveau lien à ceux qui unissent les deux pays et contribueront, je
l'espère, à l'affermissement de la paix générale, objet de leurs efforts
et de leurs vœux les plus constants," etc.
The President of France in his reply telegraphed as follows:
"La dépêche dont je remercie votre Majesté m'est parvenue au
moment ou je quittais Toulon pour rentrer à Paris. La belle escadre
sur laquelle j'ai eu la vive satisfaction de saluer le pavillon russe dans
les eaux françaises, l'accueil cordial et spontané que vos braves
marins ont rencontré partout en France affirment une fois de plus
avec éclat les sympathies sincères qui unissent nos deux pays. Ils
marquent en même temps une foi profonde dans l'influence
bienfaisante que peuvent exercer ensemble deux grandes nations
devouées à la cause de la paix."
Again there is in both telegrams a gratuitous mention of peace,
which has nothing in common with the celebrations of the sailors.
There is not one speech, not one article, in which mention is not
made of this, that the aim of all these past orgies is the peace of
Europe. At a dinner, which is given by the representatives of the
Russian press, everybody speaks of peace. Mr. Zola, who lately
wrote about the necessity and even usefulness of war, and Mr.
Vogüé, who more than once expressed the same idea, do not say
one word about war, but speak only of peace. The meetings of the
Chambers are opened with speeches respecting the past
celebrations, and the orators affirm that these festivities are the
declaration of the peace of Europe.
It is as though a man, coming into some peaceful society, should go
out of his way on every occasion to assure the persons present that
he has not the slightest intention of knocking out anybody's teeth,
smashing eyes, or breaking arms, but means only to pass a
peaceable evening. "But nobody has any doubts about that," one
feels like saying to him. "But if you have such base intentions, at
least do not dare speak of them to us."
In many articles, which were written about these celebrations, there
is even a direct and naïve expression of pleasure, because during
the festivities no one gave utterance to what by tacit consent it had
been decided to conceal from everybody, and what only one
incautious man, who was immediately removed by the police, dared
to shout, giving expression to the secret thought of all, namely, "A
bas l'Allemagne!" Thus children are frequently so happy at having
concealed their naughtiness, that their very joy gives them away.
Why should we so rejoice at the fact that no mention was made of
war, if we indeed are not thinking of it?

V.
No one is thinking of war, but yet milliards are wasted on military
preparations, and, millions of men are under arms in Russia and in
France.
"But all this is being done for the security of peace. Si vis pacem,
para bellum. L'empire c'est la paix, la republique c'est la paix."
But if it is so, why are the military advantages of our alliance with
France in case of a war with Germany explained, not only in all the
periodicals and newspapers published for the so-called cultured
people, but also in the Rural Messenger, a newspaper published by
the Russian government for the masses, by means of which these
unfortunate masses, deceived by the government, are impressed
with this, that "to be friendly with France is also useful and
profitable, because, if, beyond all expectation, the above-mentioned
powers (Germany, Austria, Italy) should decide to violate the peace
with Russia, Russia, though able with God's aid to protect itself and
handle a very powerful alliance of adversaries, would not find this to
be an easy task, and for a successful struggle great sacrifices and
losses would be needed," and so forth (Rural Messenger, No. 43,
1893).
And why do they in all the French colleges teach history from a text-
book composed by Mr. Lavisse, twenty-first edition, 1889, in which
the following passage is found:
"Depuis que l'insurrection de la Commune a été vaincue, la France
n'a plus été troublée. Au lendemain de la guerre, elle s'est remise au
travail. Elle a payé aux Allemands sans difficulté l'énorme
contribution de guerre de cinq milliards. Mais la France a perdu sa
renommée militaire pendant la guerre de 1870. Elle a perdu une
partie de son territoire. Plus de quinze cents mille hommes, qui
habitaient nos departements du Haut Rhin, du Bas Rhin et de la
Moselle, et qui étaient de bons Français, ont été obligés de devenir
Allemands. Ils ne sont pas resignés à leur sort. Ils détestent
l'Allemagne; ils espèrent toujours redevenir Français. Mais
l'Allemagne tient à sa conquête, et c'est un grand pays, dont tous les
habitants aiment sincèrement leur patrie et dont les soldats sont
braves et disciplinés. Pour reprendre à l'Allemagne ce qu'elle nous a
pris, il faut que nous soyons de bons citoyens et de bons soldats.
C'est pour que vous deveniez de bons soldats, que vos maîtres vous
apprennent l'histoire de la France. L'histoire de la France montre que
dans notre pays les fils ont toujours vengé les désastres de leurs
pères. Les Français du temps de Charles VII. ont vengé leurs pères
vaincus à Crécy, à Poitiers, à Azincourt. C'est à vous, enfants élèves
aujourd'hui dans nos écoles, qu'il appartient de venger vos pères,
vaincus à Sédan et à Metz. C'est votre devoir, le grand devoir de
votre vie. Vous devez y penser toujours," etc.
At the foot of the page there is a whole series of questions, to
correspond to the articles. The questions are as follows: "What did
France lose when she lost part of her territory? How many
Frenchmen became German with the loss of this territory? Do the
French love Germany? What must we do, in order to regain what
was taken away from us by Germany?" In addition to these there are
also "Réflexions sur le Livre VII.," in which it says that "the children
of France must remember our defeats of 1870," that "they must feel
on their hearts the burden of this memory," but that "this memory
must not discourage them: it should, on the contrary, incite them to
bravery."
Thus, if in official speeches peace is mentioned with great
persistency, the masses, the younger generations, yes, all the
Russians and Frenchmen in general, are imperturbably impressed
with the necessity, legality, profitableness, and even virtue of war.
"We are not thinking of war,—we are concerned only about peace."
One feels like asking "Qui, diable, trompe-t-on ici?" if it were
necessary to ask this, and if it were not quite clear who the
unfortunate cheated are.
The cheated are the same eternally deceived, stupid, labouring
masses, the same who with their callous hands have built all these
ships, and fortresses, and arsenals, and barracks, and guns, and
steamboats, and quays, and moles, and all these palaces, halls, and
platforms, and triumphal arches; and have set and printed all these
newspapers and books; and have secured and brought all those
pheasants, and ortolans, and oysters, and wines, which are
consumed by all those men, whom they, again, have nurtured and
brought up and sustained,—men who, deceiving the masses,
prepare the most terrible calamities for them; the same good-
natured, stupid masses, who, displaying their sound, white teeth,
have grinned in childish fashion, naïvely enjoying the sight of all the
dressed-up admirals and presidents, of the flags fluttering above
them, the fireworks, the thundering music, and who will hardly have
time to look around, when there shall be no longer any admirals, nor
presidents, nor flags, nor music, but there will be only a wet, waste
field, hunger, cold, gloom, in front the slaying enemy, behind the
goading authorities, blood, wounds, sufferings, rotting corpses, and
a senseless, useless death.
And the men like those who now are celebrating at the festivities in
Toulon and Paris, will be sitting, after a good dinner, with unfinished
glasses of good wine, with a cigar between their teeth, in a dark
cloth tent, and will with pins mark down the places on the map
where so much food for cannon, composed of the masses, should be
left, in order to seize such and such a fortress, and in order to obtain
such or such a ribbon or promotion.

VI.
"But there is nothing of the kind, and there are no warlike
intentions," we are told. "All there is, is that two nations feeling a
mutual sympathy are expressing this sentiment to one another. What
harm is there in this, that the representatives of a friendly nation
were received with especial solemnity and honour by the
representatives of the other nation? What harm is there in it, even if
it be admitted that the alliance may have the significance of a
protection against a dangerous neighbour, threatening the peace of
Europe?"
The harm is this, that all this is a most palpable and bold lie, an
unjustifiable, bad lie. The sudden outburst of an exclusive love of the
Russians for the French, and of the French for the Russians, is a lie;
and our hatred for the Germans, our distrust of them, which is
understood by it, is also a lie. And the statement that the aim of all
these indecent and mad orgies is the guarantee of European peace,
is a still greater lie.
We all know that we have experienced no particular love for the
French, neither before, nor even now, even as we have not
experienced any hostile feeling toward the Germans.
We are told that Germany has some intentions against Russia, that
the Triple Alliance threatens the peace of Europe and us, and that
our alliance with France balances the forces, and so guarantees the
peace. But this assertion is so obviously absurd, that it makes one
feel ashamed to give it a serious denial. For this to be so, that is, for
the alliance to guarantee peace, it is necessary that the forces be
mathematically even. If now the excess is on the side of the Franco-
Russian alliance, the danger is still the same. It is even greater,
because, if there was a danger that William, who stood at the head
of the European alliance, would violate the peace, there is a much
greater danger that France, which cannot get used to the loss of her
provinces, will do so. The Triple Alliance was called a league of
peace, but for us it was a league of war. Even so now the Franco-
Russian alliance cannot present itself as anything else than what it
is,—a league of war.
And then, if peace depends on the balance of the powers, how are
the units to be determined, between whom the balance is to be
established? Now the English say that the alliance between Russia
and France menaces them, and that they must, therefore, form
another alliance. And into how many units of alliances must Europe
be divided, in order that there be a balance? If so, then every man
stronger than another in society is already a danger, and the others
must form into alliances, to withstand him.
They ask, "What harm is there in this, that France and Russia have
expressed their mutual sympathies for the guarantee of peace?"
What is bad is, that it is a lie, and a lie is never spoken with
impunity, and does not pass unpunished.
The devil is a slayer of men and the father of lies. And the lies
always lead to the slaying of men,—in this case more obviously than
ever.
In just the same manner as now, the Turkish war was preceded by a
sudden outburst of love of our Russians for their brothers, the Slavs,
whom no one had known for hundreds of years, while the Germans,
the French, the English have always been incomparably nearer and
more closely related to us than Montenegrins, Servians, or
Bulgarians. And there began transports, receptions, and festivities,
which were fanned by such men as Aksákov and Katkóv, who are
mentioned now in Paris as models of patriotism. Then, as now, they
spoke of nothing but the mutual sudden outburst of love between
the Russians and the Slavs. In the beginning they ate and drank in
Moscow, even as now in Paris, and talked nonsense to one another,
becoming affected by their own exalted sentiments, spoke of union
and peace, and did not say anything about the chief thing, the
intentions against Turkey. The newspapers fanned the excitement,
and the government by degrees entered into the game. Servia
revolted. There began an exchange of diplomatic notes and the
publication of semiofficial articles; the newspapers lied more and
more, invented and waxed wroth, and the end of it all was that
Alexander II., who really did not want any war, could not help but
agree to it, and we all know what happened: the destruction of
hundreds of thousands of innocent people and the bestialization and
dulling of millions.
What was done in Toulon and in Paris, and now continues to be
done in the newspapers, obviously leads to the same, or to a still
more terrible calamity. Just so all kinds of generals and ministers will
at first, to the sounds of "God save the Tsar" and the Marseillaise
drink the health of France, of Russia, of the various regiments of the
army and the navy; the newspapers will print their lies; the idle
crowd of the rich, who do not know what to do with their powers
and with their time, will babble patriotic speeches, fanning hatred
against Germany, and no matter how peaceful Alexander III. may
be, the conditions will be such that he will be unable to decline a
war which will be demanded by all those who surround him, by all
the newspapers, and, as always seems, by the public opinion of the
whole nation. And before we shall have had time to look around,
there will appear in the columns of the newspapers the usual,
ominous, stupid proclamation:
"By God's grace, we, the most autocratic great Emperor of all Russia,
the King of Poland, the Grand Duke of Finland, etc., etc., inform all
our faithful subjects that for the good of these dear subjects,
entrusted to us by God, we have considered it our duty before God
to send them out to slaughter. God be with them," and so forth.
The bells will be rung, and long-haired men will throw gold-
embroidered bags over themselves and will begin to pray for the
slaughter. And there will begin again the old, well-known, terrible
deed. The newspaper writers, who under the guise of patriotism stir
people up to hatred and murder, will be about, in the hope of double
earnings. Manufacturers, merchants, purveyors of military supplies,
will bestir themselves joyfully, expecting double profits. All kinds of
officials will bestir themselves, foreseeing a chance to steal more
than they usually do. The military authorities will bestir themselves,
for they will receive double salaries and rations, and will hope to get
for the killing of people all kinds of trifles, which they value very
much,—ribbons, crosses, galloons, stars. Idle gentlemen and ladies
will bestir themselves, inscribing themselves in advance in the Red
Cross, preparing themselves to dress the wounds of those whom
their own husbands and brothers will kill, and imagining that they
are thus doing a most Christian work.
And, drowning in their hearts their despair by means of songs,
debauches, and vódka, hundreds of thousands of simple, good
people, torn away from peaceful labour, from their wives, mothers,
children, will march, with weapons of murder in their hands, whither
they will be driven. They will go to freeze, to starve, to be sick, to
die from diseases, and finally they will arrive at the place where they
will be killed by the thousand, and they will kill by the thousand,
themselves not knowing why, men whom they have never seen and
who have done them and can do them no harm.
And when there shall be collected so many sick, wounded, and killed
that nobody will have the time to pick them up, and when the air
shall already be so infected by this rotting food for cannon that even
the authorities will feel uncomfortable, then they will stop for awhile,
will somehow manage to pick up the wounded, will haul off and
somewhere throw into a pile the sick, and will bury the dead,
covering them with lime, and again they will lead on the whole
crowd of the deceived, and will continue to lead them on in this
manner until those who have started the whole thing will get tired of
it, or until those who needed it will get what they needed.
And again will men become infuriated, brutalized, and bestialized,
and love will be diminished in the world, and the incipient
Christianization of humanity will be delayed for decades and for
centuries. And again will the people, who gain thereby, begin to say
with assurance that, if there is a war, this means that it is necessary,
and again they will begin to prepare for it the future generations, by
corrupting them from childhood.

VII.
And so, when there appear such patriotic manifestations as were the
Toulon celebrations, which, though still at a distance, in advance
bind the wills of men and oblige them to commit those customary
malefactions which always result from patriotism, every one who
understands the significance of these celebrations cannot help but
protest against everything which is tacitly included in them. And so,
when the journalists say in print that all the Russians sympathize
with what took place at Kronstadt, Toulon, and Paris; that this
alliance for life and death is confirmed by the will of the whole
nation; and when the Russian minister of education assures the
French ministers that his whole company, the Russian children, the
learned, and the authors, share his sentiments; or when the
commander of the Russian squadron assures the French that the
whole of Russia will be grateful to them for their reception; and
when the chief priests speak for their flocks and assure the French
that their prayers for the life of the most august house have
reëchoed joyfully in the hearts of the Russian Tsar-loving nation; and
when the Russian ambassador in Paris, who is considered to be the
representative of the Russian nation, says after a dinner of ortolans
à la soubise et logopédes glacés, with a glass of champagne Grand
Moët in his hand, that all Russian hearts are beating in unison with
his heart, which is filled with a sudden outburst of exclusive love for
fair France (la belle France),—we, the people who are free from the
stultification, consider it our sacred duty, not only for our own sakes,
but also for the sake of tens of millions of Russians, in the most
emphatic manner to protest against it and to declare that our hearts
do not beat in unison with the hearts of the journalists, ministers of
education, commanders of squadrons, chief priests, and
ambassadors, but, on the contrary, are full to the brim with
indignation and loathing for that harmful lie and that evil which they
consciously and unconsciously disseminate with their acts and their
speeches. Let them drink Moët as much as they please, and let them
write articles and deliver addresses in their own name, but we, all
the Christians, who recognize ourselves as such, cannot admit that
we are bound by everything that these men say and write. We
cannot admit it, because we know what is concealed beneath all
these drunken transports, speeches, and embraces, which do not
resemble the confirmation of peace, as we are assured, but rather
those orgies and that drunkenness to which evil-doers abandon
themselves when they prepare themselves for a joint crime.

VIII.
About four years ago,—the first swallow of the Toulon spring,—a
certain French agitator in favour of a war with Germany came to
Russia for the purpose of preparing the Franco-Russian alliance, and
he visited us in the country. He arrived at our house when we were
working in the mowing. At breakfast, as we returned home, we
made the acquaintance of the guest, and he immediately proceeded
to tell us how he had fought, had been in captivity, had run away
from it, and how he had made a patriotic vow, of which he was
apparently proud, that he would not stop agitating a war against
Germany until the integrity and glory of France should be
reëstablished.
In our circle all the convictions of our guest as to how necessary an
alliance between Russia and France was for the reëstablishment of
the former borders of France and its might and glory, and for making
us secure against the malevolent intentions of Germany, were of no
avail to him. In reply to his arguments that France could not be at
peace so long as the provinces taken from it were not returned to it,
we said that similarly Prussia could not be at rest, so long as it had
not paid back for Jena, and that, if the French "revanche" should
now be successful, the Germans would have to pay them back, and
so on without end.
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