November 1, Slides 5-6 Flashcards
What question does political economy seek to answer?
Political economy examines “Who gets what, when, and how?” It focuses on the distribution of resources and power, asking how production and wealth are organized and allocated within a society.
How is inequality legitimated in political economy?
Inequality is often justified through ideologies like meritocracy, market efficiency, or individual responsibility. These narratives frame disparities as natural or deserved, obscuring structural factors like policy decisions or systemic biases.
How are markets and politics interconnected?
Markets and politics are deeply intertwined, with governments creating and regulating markets through laws, policies, and institutions. They shape who benefits from economic activity and how resources are distributed.
How do governments influence markets?
Governments influence markets by setting regulations, subsidizing industries, imposing taxes, and ensuring property rights. These actions determine market behavior and the allocation of wealth and resources.
How do governments create markets?
Governments create markets by establishing the rules and infrastructure necessary for economic exchange, such as legal systems, currency, and enforcement of contracts. Without these, markets cannot function.
Why is wealth considered a social relation?
Wealth is a social relation because it depends on societal norms, legal structures, and power dynamics. What is considered “valuable” or “wealthy” is shaped by collective agreements and systems of authority.
How do states legitimize markets?
States legitimize markets by promoting narratives of fairness, competition, and individual freedom. They use laws and policies to uphold these narratives, ensuring trust and participation in the economic system.
Are markets independent of government intervention?
No, markets are not truly independent. Even “free” markets rely on government intervention to establish rules, enforce contracts, and address externalities like environmental harm or monopolies.
How does economic power relate to politics?
Economic power shapes political decisions through lobbying, campaign financing, and influence over policy-making. Conversely, political institutions determine the rules that govern economic activity and wealth distribution.
Why is the economy inherently political?
The economy is political because it reflects decisions about resource allocation, labor relations, and wealth distribution. These decisions involve power struggles, societal values, and state intervention, making economic systems deeply tied to political processes.
