It seems that some of our most respected and, until recently, most successful firms are in serious trouble.  The American auto industry may be about to go the way of the American steel industry.  We have come through a period when large accounting firms, energy firms, drug firms, and others have been charged with very serious breeches of ethics and corporate responsibility.  AT&T, once the largest of American firms, has, in a sense, bitten the dust.  Sears, our once top retailer was bought out by a once floundering K-Mart.  Our current top retailer, Wal Mart, seems to be unable to keep the trust of the nation.  Other examples could be given.

Is this a real crisis or just a perception of one by our citizens or, for that matter, just our media? Is it symptomatic of structural change in the economy or is it the beginning of the loss of our preeminence in the world economy.  Have our top executive lost their way  -- either by descending into immoral or illegal behavior, or by losing their ability to manage and to lead.

These thoughts are intended to “get you going” on an essay loosely about some of these themes or related themes.  For now begin to gather your thoughts and try to jot down some notes, or do a little reading on the subject.  Your goal will be to write a 3-4 page essay which explores some of these areas while trying to look at things from an “economics perspective.”  You can “go with this” or argue that all is well and there is no crisis.  That is up to you.