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The Flaws And Shortcomings Of The International Political Economy

Decent Essays
Tanner Dwan
PS1 RR #1 The international political economy can be defined as having three different ideologies, Liberalism, Mercantilism, and Marxism. I personally believe the economic liberalism ideology is superior to the others due to its success. In order to understand why economic liberalism is the most convincing ideology of the international political economy we must look not only at the core principles of said ideologies but towards the history of the international political economy and the flaws and shortcomings of them. Economic Marxism was founded by Karl Marx off of insights from the early capitalist ideology of classical economics. Marx believed that labor was a commodity in and of itself. Marxism was used by central-planning and command economies such as the former Union of Soviet Socialist Republics and the Peoples Republic of China pre economic reform. Marxism uses the labor value theory which determines the value of a good by the amount of labor that goes into producing it. This is flawed because it does not take into account the scarcity or value of materials that are required to produce said good. Marxism views corporations as greedy and selfish entities that, left to their own devices, will have wanton regard for the environment, exploitation of labor or natural resource consumption as long as they continue to benefit. Marxism views the state as having supreme responsibility to maintain order in the economy. This can be seen in past command economies
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