State Economy Society Flashcards
(168 cards)
1
Q
What did Smith believe are the true measures of wealth?
A
Value and productivity
2
Q
How does Smith’s law of accumulation work?
A
All about self interest, regulated by competition which drives reinvestment to gain more profit
3
Q
What did Smith think about planning?
A
No planning, we need to be free from the interference of the state to allow the invisible hand to work
4
Q
What is Smith’s system of perfect liberty?
A
We are free to leave to go to other jobs, this prevents employers dropping wages (natural price through competition). Supply of labour will adjust to meet the demand
5
Q
What is Smith’s law of population?
A
- Higher wages increases the number of workers (more born and more survive)
- In turn excess labour pushes the wages down (less people survive)
- Poverty is the mechanism of labour supply
6
Q
What is the paradox about Smith’s worker?
A
Rational homoecomicus but still keen to reproduce
7
Q
What role does Smith envisage for the state?
A
State shouldn’t interfere in the workings of the market. State should be made of experts who will take advice.
- Legal protection for all -Protect private property
- Invest in necessary but unprofitable works (Education)
- Anti monopoly -Resolve capital labour struggles?
8
Q
Critique of Smith’s wealth and state ideas?
A
- Are we always rational beings?
- Market isn’t harmonious but crisis ridden
- Conflict exists between workers, landowners and owners of the means of production, leads to a social struggle
- How can the state resolve capital labour struggles but retain a free market?
9
Q
How did Smith justify a society based on market principles?
A
Offered a systematic account of how society could operate on market principles using rational and moral justifications through the invisible hand
10
Q
What ideas did Smith reject?
A
- Mercantilism (Gold symbolizing wealth)
- Divine right of Kings
11
Q
What did Smith see political economy as?
A
“Branch of Science of the statesman or legislator”
12
Q
What is Smith’s idea about the division of labour? (from the Wealth of Nations)
A
Break down large tasks into smaller ones. This increases dexterity (practise), saves time switching tasks, will find machines to aid with tasks (lazy) and keeps people focused.
13
Q
What did Smith believe about human nature?
A
-Truck barter and exchange (not human wisdom that leads to division of labour).
14
Q
What is Smith’s view on natural talents?
A
Difference in natural talents in reality is less than people think. Habit, custom and education are not from nature and this shapes childhood development. Utilise other strengths to enhance society
15
Q
What did Smith seek to do with capitalism and human nature?
A
Sought to rationalise capitalism by making it appear as an organic development of human nature
16
Q
Did Smith think Capitalism could go on forever?
A
He was doubtful of Capitalism’s ability to keep expanding, stagnation and collapse possible. Sees Capitalism as a totality (all or nothing)
17
Q
What was Smith’s problem with profit?
A
Greatest problem was explaining profit (growth), in perfect competition can profit even exist? If profit is deducted from costs then labour is short changed- function of the price becomes exploitation
18
Q
What did Marx argue about Smith and profit?
A
Argued Smith could see the contradiction of profit in his model which proved social antagonism was inherent to capitalism
19
Q
What did Smith think the political economy was?
A
Logic of interdependence of the state and market in the context of their separation
20
Q
What did Hegel’s dialectics argue?
A
- Critique of Western logic which emphasises the importance of rationality (master and slave mutual dependance).
- System a totality with elements in contradictions or negation.
- History is a whole, not a series of discrete events
21
Q
What did Hegel think about change?
A
Change unfolds due to dynamic movement of contradictions
22
Q
What did Marx think about Hegel?
A
- Fascinated by his ideas
- Criticised idealism for misrecognizing the social genesis of its concepts and categories
- Didn’t agree an idealised “World Spirit” was emerging, wanted a materialist interpretation
23
Q
What is Marx’s idea of historical materialism?
A
- Not just describing things or basing ideas on principles/assumptions (like human nature which change through time)
- Knowledge is gained from unravelling contradictions in how society appear to the people who inhabit it
24
Q
What is the central contradiction for Marx in society?
A
The commodity itself
25
Problems, for Marx, with commodities under Capitalism?
- Capitalism only produces items for exchange value. (Smith ignores profit, as exchange is based on wages)
- The labour in the good becomes abstract and only judged by time, not use
26
What did Marx believe about wages?
Determined by the cost to reproduce the labour (not what the labour produces). Profit is the extraction of unpaid labour time
27
Marx quote on capital and labour
"Capital, therefore, is not only the command over labour... it is the command over unpaid labour"
28
What is Marx's principle of doubly free?
Free to sell labour, but free from the means of production. Expropriation of labour as workers would otherwise pay themselves more or only worked when they needed to
29
Marx quote on history of society?
"The history of all hitherto existing society is the history of class struggle"
30
Marx quote on change
"Philosophers have only interpreted the world in various ways, the point is to change it"
31
Marx quote on capitalists
"As a capitalist, he is only capital, personified"
32
Marx quote on the state/executive committee?
"Executive committee of the modern state is nothing but a committee for managing the common affairs of the whole bourgeoisie"
33
What is Marx's view on the Fetishism of the state?
State appears neutral to separate and abstract characteristics of the economics of capital-labour relations
34
How does Marx view capitalism?
Dynamic antagonism of conflicting interests. Contradictions within push it towards crisis (conflicting interests) but workers together may realise they need to destroy the system itself
35
What does Marx view as the capital accumulation problem?
Rate of profit falls with investment
| Crisis of accumulation- limits to how much capital will raise growth.
36
What is commodity fetishism ? (Marx)
Capital is dead labour (Removing human element from the commodity)
37
How does Marx view social relations under Capitalism?
Social is subsumed by the accumulation of capital "impersonal exchange" (not merely producers/consumers). There is a volatile but submerged class struggle
38
Marx quote on the exploited relations under Capitalism?
"Capitalism encrypts exploited relationship to make it appear as a free and equal exchange of commodities"
39
Marx quote on capacity of labour?
"Capacity of labour is nothing unless it is sold"
40
Marx view on class?
Not discrete groupings, class precedes how people think/act about their social roles. Antagonism between capital and labour underpins capitalism. (Movement can only be analysed historically)
41
Form behind social relations? (Struggle)
Colonialism, legal framework, social, academia, the state, art, class, politics, institutions etc
42
What do instrumentalist Marxists argue about the state?
Miliband: State independent of the economy, captured by the powerful and used as a tool to further their interests. Bourgeois power, internal to the state. S
-Short termism, self destruct, in fighting
43
What do structuralist Marxists argue about the state?
Poulantzas: Autonomous but functional to the interests of capitalism. State necessary to prevent self-destruction of capitalism. Politics is the interplay of interests (hegemony)
44
What do Open Marxists argue about the state?
Bonefeld: State not an agent of capitalism, it is a historically developed form of the capital-labour relations. State emerged from abstract labour. State is universal and abstract (equality, legal rights etc)
45
What did Marx argue about value?
Value is not fixed, relative to other commodities e.g. wheat =/ iron (independant of each other)
46
Barker 1978 on capitalist state?
"Capitalist state takes the form of the nation state"
47
Holloway on globalisation and the state?
"Globalisation didn't cause global capital"
48
What did Polanyi think about Keynes?
Sympathetic to Keynes but didn't believe the elusive search for equilibrium would tame the market
49
Why did he publish The Great Transformation in 1944 (aim of the book)
To change the way we thought about capitalism, market and the state (Not a Marxist)
50
What did Polanyi think about Marx?
Averse to private property but not convinced by economic determinism of Marx and the reduction of histories into universal law. He thought state played a leading role in society
51
What did Polanyi argue caused WW1?
Anglo-Saxon doctrine of laissez-faire and self-regulation
52
What is Polanyi's double movement?
The assault on traditional jobs, beliefs and exchange produces a counter reaction- push back against the inhuman rule of the market
53
What was the Speenhamland system?
It was a system of poor relied seen as a subsidy for employers who pay proper wages
54
Who is involved in Polanyi's double movement?
Not just working class, also small business owners, politicians, newspapers etc
55
What is the link between Marx and Polanyi on the double movement?
Links to Marx's idea of contradictions in the market however Polanyi doesn't think the outcomes will be progressive
56
Why did Polanyi argue Fascism emerged?
From globalism (gold standard, colonialism etc). Negative double movement aiming to take back control through ultra nationalism
57
Problems caused by the gold standard?
Trade imbalances/deficits, drained gold reserves- deflation! Reduced demand and employment.
58
Stiglitz on Polanyi quote?
His greatest contribution was to demonstrate self-regulating markets never work
59
Polanyi on the gold standard quote?
"Most other institutions had been sacrificed to try and save it"
60
What did Polanyi in GT say about self-regulation?
"Demands nothing less than the institutional separation of society into an economic and political sphere"
61
When did Polanyi say a market economy could exist?
"A market economy can only exist in a market society"
62
What did Polanyi say about the role of propaganda?
Market economies require violence, natural or created. In order to maintain control there has been a battle to misrepresent facts to show market failures as a sign of success e.g. inequality
63
Polanyi quote on the "stark utopia" of the self regulating market?
"Such institution couldn't even exist for any length of time without annihilating the human and natural substance of society"
64
Polanyi's view on commodities?
Land, labour and money are fictitious commodities because none are produced explicitly for sale (this lies in the tragedy of market failure)
65
Examples of "push back" against fictitious commodities (Polanyi)?
Sale of fictitious commodities increased as global trade increased, seen a push back with trade unions, political movements e.g. chartism
66
How did Polanyi disagree with Hayek about money?
IR has become condition to try and maintain the value of money. He argued the equilibrium cannot be reached naturally
67
How did Polanyi conceptualise the market?
Economy is not interlocking markets regulated by the price. Markets have always been embedded into human society, subordinate to politics, social, religious relations and values
68
What did Polanyi think of Smith's disembedding of the market?
Pure falsification
69
How do markets destroy ultimately society itself? (Polanyi)
Markets attempt to sell more volume of a commodity which leads to exhaustion and destruction of nature and society itself. Especially for fictitious commodities (E.g. unemployment, hunger, revolution)
70
How can the state (Polanyi) rescue society from the market?
Must re-embed the market to prevent or rescue society from market failure
71
How has Hayek's school of thought criticised Polanyi?
- Suggests historical crisis prove deregulation is necessary to prevent market distortions
- Lack of consistent theory of value over commodification of labour (inevitable and impossible?)
- If labour is fictitious does it have no value?
72
Overall interpretation of Great Transformation?
- Markets not a natural feature of human society (used to have non-market mechanisms)
- Conflict with society, exploit nature for profit, trust eroded for short term transactions. Humans a commodity
- Counter movement allows the market to survive, causes harmful ideologies
- Deception key to warfare, portray disaster as progress
73
What was Schumpeter's book, Capitalism, Socialism and Democracy introduced in 1942 as?
A Conservative response to Marxism in the 1930s
74
What were Schumpeter's 4 fields of economic study?
- Economic theory
- Economic sociology
- Statistics
- Economic history
75
3 Main questions in Capitalism, Socialism and Democracy?
- Is Capitalism doomed to fail?
- If Socialism replaces Capitalism can it produce economic success?
- Is democracy likely to accompany either system?
76
Schumpeter's critique of Marx's society?
No economic explanation of class society . Doesn't separate materialism from metaphysics
77
Schumpeter's notion for Socialist politics?
"The economic affairs of society belong to the public and not the private sphere"
-Focus on centralist planner state
78
Does Schumpeter think socialism will work?
"Nothing is wrong with the pure logic" but it won't work too many preconditions. Bureaucracies needed to set prices not set by the market, preferences of goods is natural and thus socialism won't work
79
What is Schumpeter's creative destruction?
Capitalism is a problem directed at destroying and creating new structures. Cannot just look at current performance of companies, what is key is the evolution of economies (not free competition)
80
Why does Schumpeter argue perfect competition is a myth?
-Neglects business strategy, no such thing as frictionless transactions. PC suspended when a new product emerges (whole point of patents to corner the market)
81
Galbrath quote on Schumpeter?
"Most sophisticated Conservative of this century"
82
Schumpeter quote on the emergence of new products?
"Fundamental impulse that sets and keeps capitalist engine in motion"
83
Quotes from Schumpeter about Oligopolies?
"Infinite state of warfare between firms"
84
Tobin quote on Schumpeter's ambition?
Ambition was to turn Marxism upside down
85
Schumpeter quote on Capitalism being criticised a foregone conclusion?
1930s Public mind has by now so thoroughly grown out of humour with it as to make condemnation of capitalism and all its works a foregone conclusion
86
Schumpeter quote on democracy and government?
Principle of democracy means the reigns of government should be handed to those who command more support than any of the other competing individuals or teams
87
What is Schumpeter's idea of Oligopolies?
Competition becomes not just about price but about product quality and marketing. Innovation disciplines before it attacks. Monopolies are good for scale. Key is tech progress
88
What type of government does Schumpeter envisage for Oligopolies?
A limited state, focusing on public goods which would be undersupplied by the market (Water and education)
89
Does Schumpeter think Capitalism can survive?
"No I do not think it can"
Capitalism is the most perfect economic system that mankind has ever created but has developed the seeds of its own destruction for social not economic reasons (increasing number of losers in the system, problem if they can vote!)
90
Why does Schumpeter disagrees with Marx's immiseration thesis?
Argues Capitalism actually raises standard of living (not over production and lower profits) as monopolies are good for innovation. Smaller firms get destroyed. A powerful firms are forced to keep innovating.
91
What is the Schumpeterian model of democracy?
"Individuals acquire power to decide by means of a competitive struggle for the people's vote"
92
Problem with politics for Schumpeter?
Politics isn't always best for the economy as the electorate are like a marketplace the gov is prone to pressure. People will question capitalism and turn to extreme views/parties when they "lose" (no mechanism for an anti-system vote)
93
How is Schumpeter similar to Polanyi's self-regulating market?
Social dislocation (winners/losers, resistance/ballot box). Polanyi is more pessimistic, government favours capitalist elite and therefore people will support authoritarian regimes
94
What is Hayek's view on order?
Two types, Cosmos (spontaneous) and Taxis (planned). It is a mistake to think all order is designed, it actually evolves and changes over time, unpredictable (like language. Cosmos is key for complex societies, human arrogance to think we can plan order
95
How does Hayek envisage the economy works?
Every agent has different resources/knowledge about prices, opportunities etc for production, buying and selling. Market brings together this decentralised knowledge through prices. Prices help us form expectations and form communities
96
Why does Hayek not like the term economy?
Sees it as misleading as it derives from households which prevents us seeing the unplanned world of decentralised ork. Planning only occurs with individual and institutions. Prefers the word "Catallaxy"
97
Hayek quote on Catallaxy?
"The order brought about by the mutual adjustment of many individual economies in a market"
98
How are communities formed for Hayek?
All focuses on exchange, which allows you to be admitted into a community. Only way to change an enemy into a friend
99
Why for Hayek would a planned state not work?
As there is no independent truth on what the cost or allocation should be. Competition is necessary in a complex modern society
100
Hayek quote on the chess board of society?
"Great chessboard of human society, every piece has a principle of motion of its own, altogether different from that which the legislator might choose to impress upon it"
101
Hayek quote on democracy?
"Liberalism and democracy, although compatible are not the same"
102
Why was Hayek anti-unions?
"Monopolistic practises"
103
Hayek's letter to the Times on democracy quote?
"Market place indispensable for individual freedom... ballot box is not"
104
Hayek quote on lasting democracy?
"Collectivist creed, democracy will inevitably destroy itself" (road to serfdom)
105
Hayek's thoughts on impartial government?
The only way for a government to be impartial is to not know the true outcome of policy on individuals
106
Shearmur on Hayek?
"He is not a proponent of laissez-faire"
107
Keynes critique of Hayek?
"No guidance on where to draw the line" on market intervention
108
What did Hayek see the key role of government as?
Provide a stable framework of rules.
| Common law is better than legislation
109
What is Hayek's vision for liberty?
No other person can coerce him to do their bidding
- Subject to the same laws
- Immune from arbitrary confinement
- Free to work
- Free to buy property
110
Critique of Hayek's liberty?
- Wooly definition of coercion
- Violence, refusal to trade, does nagging count?
- Poverty is not deemed a constraint
- Oasis argument, no contract broken, commodity v private goods
- Why is liberty important in a spontaneous order?
111
What did Hayek think of social justice?
Social justice is a hangover from primitive altruism, criticize Rawls on these grounds. State can provide a minimum safety net to eliminate suffering, but this is not a matter of justice (this is inconsistent)
112
What is the Road to Serfdom about?
Critique of National Socialists and Communist states. Radical challenge to contemporary liberal democracy
113
What are the problems with liberal democratic institutions for Hayek?
"Lead to a gradual transformation of the spontaneous order of a free society into a totalitarian system" (form coalitions of organised interests)
114
Hayek on anti-liberal democracy quote?
"Demanding unlimited powers of the majority has become essentially anti-liberal"
115
Why does Hayek favour negative freedoms?
Negative over positive freedoms are better to guarantee a liberal market order. Do not want a designed outcome or goal- common good has no meaning.
116
How does Hayek envisage the role of the government?
- Framework for the market
- Organise money
- Prevents fraud
- Address externalities
- Welfare
117
Why does Schmitt think a sovereign is needed?
To provide order in face of social unrest (power rests with the people in mass democracy) and make decisions
118
Why does Schmitt not like liberalism?
Undermines democracy, sovereignty and order. It is ineffective against civilisational threats
119
What is the liberal view that Schmitt is against?
- Law basis of the state, legitimate authority rests on law
- Sovereign bound by the laws (Separation of powers)
- Neutral framework of rules
- All free and equal
- Politics is a discussion aimed at the truth
- Compromise amongst different interests
120
Why does Schmitt disagree with Schumpeter?
Rejects the idea of of liberal democracy as he thinks it will lead to societies destruction
121
What is Schmitt's idea of political theology?
Sovereign modelled on God, transcends the legal state (Leviathan, human mortal god- hobbes)
122
What does Schmitt think makes the law?
Authority not truth makes laws
123
Why does Schmitt think laws are not neutral?
Laws/decisions are never neutral, always partisan, they express the concrete identity of the sovereign "who we are" . Main question is does the law come from the right source?
124
What is Schmitt's state of normality? What does he think Politics needs to determine?
No functioning legal order without the sovereign authority. Legal rules are indeterminate and need to be applied. Requires a state of normality (homogeneous medium). Polity needs to determine when these rules are suspended
125
Who is Schmitt's sovereign?
"Sovereign is he who decides on the state of exception"
126
What for Schmitt makes a strong state, quote?
A strong state can remove itself from political affairs
127
What, for Schmitt is a true state?
"Every true state, always has been, a total state"
128
Schmitt's quote on problems with elections?
A list of candidates "doesn't constitute an election" as the opposing ideologies never lead to a majority decision (not even a loose one)
129
What is Schmitt's concept of tripartition?
"Can be no meaningful universal electoral rights without necessarily corresponding universal military service"
130
What type of economic sphere does Schmitt envisage?
Sphere of pure privacy, monopolies need protecting. Not everything public is of state concern. Exchange not a moral alternative to conquest
131
How does Schmitt link to Leo Strauss?
Free trade an arena for exploitation. Human rights don't exist as it breaks the friend v enemy idea
132
What is Schmitt's state of exception?
There may be legal conditions for a declaration of a state of emergency and constraints on state actors. (e.g. Article 48 of the Weimar Constitution)
133
Schmitt quote on emergencies?
"We cannot foresee what will be necessary to respond to an emergency"
134
What is decisionsim for Schmitt?
At best the positive law can decide who determines if there is a state of exception
135
What for Schmitt is the key meaning of the political?
Key distinction is between friend and enemy. No such thing as moral or economic distinctions (liberals wrongly miss them). Only the group can judge if they are collectively at risk, rests on possibility of interest hostility, war and killing
136
What is democracy, for Schmitt?
Self rule by the people (Ruled and ruler) No particular method for self rule
137
How should as sovereign dictator act? (Schmitt)
Should act in the name of the people . Must be inline with the majority rule. Dictator is more uniting than parliament. Any leader must represent the majority view, embody political identity and define enemy
138
Why does Schmitt see politics as depoliticised?
Views politics as a technology, emptying it of all meaning, fails to properly distinguish between friend and enemy. Opens up internal disunity (interest groups/citizenship etc), confuses politics with economics and morality
139
Why does liberalism fail to protect us for Schmitt?
They believe conflicts can be resolved through discussion and this undermines the conditions of law
140
Why did Weber disagree with Marx?
Disagrees with Marx that production drove society and politics is a symptom of the struggle
141
What for Weber is politics?
Not just symptoms, capitalism arises from many factors (including Marx's breakdown of feudalism). State is key!
142
What for Weber is the tension in society?
Individualism v rationalism (Politics can help us cope with this tension)
143
How are protestantism and capitalism linked for Weber?
- Ethics, links in their ideas
- Vocation - Divine purpose -Deferral (disciple)
- Non indulgence -Commitment to efficiency
- Conquest of life through science
144
What is Weber's link between efficiency, God and success?
A sign of divine love. God has a purpose for society. Work hard for a purpose (Expertise and science)
145
How does rationalisation show itself in society for Weber?
Through bureaucratic state and corporations
146
What makes up the bureaucratic state for Weber?
- Hierarchy -Qualifications
- Control of knowledge
- Impersonal rules -Division of duties
147
Why is state bureaucracy essential for the modern age?
- Superior rationality, precision, stability and reliability is a way of exercising authority
- Escape proof, "What can we oppose about the machines to free the human soul?"
148
What is disenchantment?
No objective meaning for the world. The world is just there
149
Quote on where Weber thought European liberal freedom came from?
"the historical development of modern freedom proposed a unique and unrepeatable constellation of factors"
150
Where did Weber argue the state gained its legitimacy from?
"Legitimacy of the modern state is found predominantly of legal authority that is a commitment to the code of legal regulations"
151
Weber, in profession and vocation of politics, argues what about the organisation of politics?
"Organization of politics is necessarily an organisation run by interested parties in all political associations of any magnitude"
152
Weber quote on responsibility?
"Responsibility for the future which the victor in particular must bear"
153
Weber quote on resisting evil?
"You must resist evil with force, for if not you are responsible for the spread of evil"
154
What is rationalisation? (Weber)
Replacement of tradition, values and emotions with rational calculated motivations
155
Key ideas of politics as a job for Weber?
Politics is a pact with the diabolical means of violence.
- Training is key
- Responsibility
- Judgment
- Parison
156
What for Weber are the ethics of conviction (responsibility)?
- Actions are shaped by noble intentions
- Sermon on the mount (Pacifism, revolutionary violence)
- "World is stupid and base, not I"
157
What for Weber are the ethics of responsibility?
-Mercy of consequences
-Irreconcilability
-Choice in modern politics
"When one should do or or the other... cannot give instructions"
158
Weber definition of the modern state?
"A human community that successfully claims the monopoly of legitimate use of physical force over a given territory"
159
What for Weber is legitimacy?
Establishing authority not mere power
160
3 types of legitimacy for Weber?
Traditional
Charismatic
Legal-rational
161
For Weber is the state neutral?
No, legal rational ideas that the law binds everyone is key to understanding the state
162
Why did Weber critique Socialism?
Socialists think they can replace bureaucratic domination with democratic control over the economy. Modern economies need management/admin of complex info. Replacing anarchy of the market with planning doesn't work as the information is too complex
163
What is elite pluralism for Weber?
Competition of government and firms holds each other in check. This wouldn't exist under socialism
164
Problem for Weber with democracy?
- No route to participation under socialism. Mass politics make leaders crucial.
- Socialism could deny universal suffrage
- Voter knows where the shoes pinches but not how to mend the shoe
165
Why for Weber should we still have democracy?
Problems would be worse without democracy, without the franchise the masses are incorporated via propaganda and demagoguery.
"Democracy of the streets"
166
How for Weber should political parties work?
Parties are a key example of bureaucratisation, political class who live off not for politics. It acts like a market system with incentives, parties control politicians. Parliament a training ground for future leaders
167
Weber quote on slow politics?
"Politics means slow, strong drilling through hard boards"
168
Why do we need ethics of conviction and responsibility for Weber's politicians?
"Only in combination do they produce the true human being who is capable of having a vocation for politics"
