The State And Economic Life

Government is an essential part of civilization in modern and historic times. This crucial element of society has been observed in different forms. There are three main systems of governments: autocracy, oligarchy, and democracy. Which system a government belongs to is determined by who hold the sovereignty, meaning who has the supreme power and authority (“Sovereignty”). This leads to there being major differences between autocracies, oligarchies, and democracies.

“Karl Polanyi, a historical anthropologist at Comlumbia University, argued that market economies, private profit seeking, and capitalism were a peculiar and unnatural way of structuring an economy.”(The Worlds History, Spodek, ch.12, p.375) Polanyi also discussed how back in ancient times, trading was meant to provide and benefit the whole society, not personal benefit like the free market economy was. Another historian, Philip Curtin, agreed with Polanyi is many ways; except that there was historical proof there was individual, personal trading going on in ports and throughout long distance routes back in the earliest times. (The Worlds History, Spodek, 2001, Ch. 12)

There is a problem with the national government and trying to control how much power the state

According to Thomas Jefferson, an influential leader, “No government can continue good but under the control of the people.” Jefferson’s quote suggests that the social contract and state are only run sufficiently under the authority of the people. There is a common assumption that a definite agreement among the population of a society, is dictated by the individuals themselves. In the past, various theorists as well as powerful leaders have made conscience endeavors to demystify whether the social contract is imposed by the sovereign or society. This essay makes an argument that the social compact is dictated by individuals because individuals have the power to alter the governments they exist within. The state is what the people define it as. It is bound by territory, and people, states comprise of governments. The Social Contract is developed by Jean Jacques Rousseau about what is believed to be the greatest method to establish a political community.

Government is an administration defined by the Constitution, but is also a constantly adjusting foundation by the efforts of its citizens. By Litherland (2014), government is defined as policies set in order to lead a body of people (p. 395). Over the span of time, the idea of government has been stretched, changed, and applied to various communities throughout both the nation and the world. Whether it was back in the eighteenth century, current, or in the very near future—government has existed and will continue to exist for its people and the nation it has built its foundation upon. With the use of multiple authors, those of: “Difference between Direct and Representative Democracy” (n.d.), “Federalism - Dividing Power between States and the

An economy, as defined by the Webster Dictionary, is the wealth and resources of a country or region, in terms of the production and consumption of goods and services. An economy, as defined by the vernacular, is a word that has become linked with synonyms that invoke feelings of dread, depression, collapse, and flat out anarchy at best. Both close to home and globally, people have felt some effect of the market crash. Since 2007, millions of Americans lost their homes, jobs, and feelings of financial security. To even begin to think about possible solutions to the current state of the economy, one must first understand the origin of our problems. We are in a recession today because of a weak job market, risky mortgages, and a heavy

“The Power Elite” by C. Wright Mills deals with the question of whether or not there are people who control society. The author suggests that a collection of people from different aspects of government, such as the military, industrial, and political sectors, all play a role in dictating public sentiment and action. He also takes into account that it is likely that the leaders from each element of control may not intentionally operate in the same interest and at times may work against each other. However, it is evident that there are minds and entities that exert control over the population and the establishments, schools and churches, which they flock to in the pursuit of knowledge. There is nothing to suggest that there are not individuals

Some contemporary Scholars like Quentin Skinner define the state today as "a locus of power distinct from either the ruler or the body of the body of the people." (Skinner, Foundations of Modern Political Thought, II, p.355). Yet, others would argue that the potency of the word "state" derives from the fact that it means both ruler and people. In other words, the state is at the same time loved for its promise of order and stability for the whole community and feared for its threat of coercion by the power which does the ordering. Both schools of thought may be right for there is no universal definition of the concept. But no intellectual discussion about the concept of the state is complete without a review of the writings of St. Thomas

States are such powerful actors because in most cases, they can control a significant amount of the day to day of its citizens. Two common methods states use to control the status quo include suppression of revolutions through the use of force including the mobilization of police and the armed forces. This can be a significant influencer in maintaining the status quo as many individuals fear a potentially violent reprisal from the state should its citizens stage a protest or revolution. Another method states use to maintain the status quo is cronyism and nepotism used by officials within that state. Officials within states often have the power to give influential roles to their friends, families, and individuals that could be beneficial to their

Karl Polanyi uses economic theories conceptually to prove the negative effects of capitalism to a society. Polanyi uses the analyzation of social principals of behavior as well as fictitious commodities to further his belief of the negative impact capitalism.

In contrast, the economy within societies based on tradition lies on procedures designed in the past and maintained by shared customs and beliefs which are extremely powerful (Helibroner 8). For a society based on commands, there is always an imposed authority or an economic command. The economic problems are solved according to the commander’s decisions (Helibroner 10). This is the very first time in human beings’ history that economy is run by markets, making the transformation to market society appear to be unprecedented (Polanyi 43).

To compare and contrast market fundamentalist and protectionist and to tell how these play out in Silicon Valley it is important to understand what Polanyi’s double movements are. Karl Polanyi argues that two opposing movements constitute markets in societies: Marketizers and Protectionists. They disagree whether the market dynamics assure optimal use of market resources or not. They also disagree if the state should play a limited to no role in the economy or if it should play a more important role.

In the modern world, most of the countries have democratic government, which means that decisions are made by the people, who rule and govern the state. However, there is not a single state that practices perfect democracy due to different reasons. Governments are too big, which makes it very complex for every citizen to have a voice in decisions. Or, governments are claimed to be democratic, but in practice they can be close to authoritarian or even totalitarian regimes where one person has a power to make and enforce laws. Political power is not allocated evenly among all members of society, so, in this or that way, governments tend to fall in the hands of the few, whom we can call the elite or the power elite.

Political economy is the study of production and trade and their links with custom, government and law. It is the study and use of how economic theory and methods influence and develop different social and economic systems, such as capitalism, socialism and communism, and it analyzes how public policy is created and implemented. Since various individuals and groups have different interests in how a country or economy is to develop, political economy as a discipline is a complex field, covering a broad array of potentially competing interests (Investopedia).

The study of an economic world is a complex and unpredictable undertaking, involving people buying, selling, investing, bargaining and persuading. As a result of it being broad and complex, it is divided into many disciplines to make reason from information given by the economy.