What Does a “Political Economy” Approach to Study of the Creative and Cultural Industries Involve? What Are Its Advantages and Disadvantages?

4265 Words Apr 18th, 2012 18 Pages
Creative and Cultural Industries, MA
Module: HUP057N

What does a “political economy” approach to study of the Creative and Cultural Industries involve? What are its advantages and disadvantages?

ID: 10048001
Anastasia Davydova

1. Introduction

The intention of this paper is to define what we mean by political economy? What does this approach involve to study the Creative and Cultural Industries and what its advantages and disadvantages. This work will search through definitions, different schools and historical periods to better understand the background of Political Economy. Also this approach will be
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He believed that minimal role of state in the economy and whether people act out of self-interest will benefit to the society. “Invisible hand” will regulate the market which at once satisfies self-interest and the needs of the community. Hence Smith's considered political economy “as the study of wealth generation”. (Babe 2009: 14)
Karl Marx with other economists worked on Labour theory of Value (Babe: 14) believing that workers have rights to be paid for their work (labour). This is another important characteristic of classical political economy. But on the other hand he claimed that (to be in opposition to Adam Smith’s theory) free market polarises wealth where rich people get richer and poor get even poorer. So the public ownership of the means of production is the only way of equal distribution of wealth. People act out unity and for the good of society.
Neoclassical Political Economy is all about consumers “taste and preferences” which is valued and preferred more than labour. Class does not matter at all, but everyone is a consumer and cultural goods and services became treated as commodity. In this neoclassical period of political economy the main question is how humans want be most satisfied? And how markets function at the best? (Hesmondhalgh 2007) “Economics became essentially a mathematical-deductive system—in stark contrast to classical political economy, which was fully engaged with the
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