Money and Power Lecture 10

1
Money and PowerLecture 10

• Money and the State

2
Money and Power. Possible roles for the state
Outline Lecture 10

• Neo-conservative view
• Neo-liberal view
• Keynesian view
• Socialist view
• Marxist view
• Green view

3
Money and Power. Neo-conservative view Lecture 10

• Pro private property and market
• Role of the state is directly to protect and
  promulgate market
• Political support for the system required
• Authoritarian state if necessary
• Keynesian if necessary
• Minimum welfare support for population
• Social support for system necessary
• Family
• Religion
• Charity
• Imperial if necessary to protect property system

4
Money and Power. Neo-liberal view Lecture 10

• Individualist society is sum of the individual
  parts
• Markets and private property lead to an efficient
  and desirable allocation of resources
• Role of state in the economy is to supplement
  market where strictly necessary
• Political system is subsidiary to the economic
  system
• Keynesianism has only small technical role
• Minimum welfare support for population
• Society must and will, if allowed, adjust to
  market system
• Imperial if necessary to enforce free trade
• Role of WTO

5
Money and Power. Keynesian view Lecture 10

• Social structure important
• Markets a means to an end not necessarily
  efficient
• Role of the state in the economy is to manage
  aggregate demand
• Political action necessary and effective
• In economy
• In providing welfare
• In redistributing income
• Markets should be made to adjust to social
  objectives
• Sees some benefits to globalisation if properly
  managed

6
Money and Power. Socialist view Lecture 10

• Social structure important
• Markets inefficient and of secondary importance
• Major economic decisions taken by the state
• Political decisions crucially important
• Direct ownership/control of major industries
  necessary
• Tend to centralise decisions
• Social values
• Equality
• Solidarity
• Suspicious of globalisation as reduces ability of
  state to run economy
• Anti-imperialist

7
Money and Power. Marxian view Lecture 10

• Social structure important
• Capitalism inefficient and crisis bound
• Capitalist state hopelessly corrupted by economy
• Crucial political question which social class
  dominates
• Working class is the agent of economic and social
  change
• Workers state plays crucial role in economy
• Largely socialist economic principles
• Democracy crucial to working of state
• Social values
• Humanistic
• Support for anti-capitalist struggles
• socialist

8
Money and Power. Green view Lecture 10

• Crucial relationship humans and nature
• Markets acceptable if they are made to work in
  ecologically functional way
• State plays crucial role in determining the level
  of and control over environmentally damaging
  economic activity
• State must have power to determine economic
  activity
• Authoritarian state seen as necessary by some
• Democratic decisions seen as crucial by others
• Values
• Environmental SUSTAINABILITY
• Sufficient social stability to implement
  sustainable policies
• Suspicious of globalisation as source of
  uncontrolled and potentially environmentally
  damaging economic growth
• Opposes imperial (or other) war as ecologically
  disastrous