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

Karl Marx believes that a capitalistic society separates the rich from the poor. corporations that holds the money hold the power to dictate whether certain fucntions of society.

which allows for the ownership of the means of production. Under capitalism, if you purchase a business and pay people to work there, you are entitled to all of the profits earned. Marx views this as an immoral and an

In the following section, I will define terms that Karl Marx used in his works. The term bourgeois is defined as the owners of the means of production. In oppose to bourgeoisie, the proletarian or the wage-earner is defined as “a class of labourers who live only as long as they find work, and who find work only as long as their labour increases capital” (I. Craib, Classical Social Theory, 99). Economic is defined as relating to the process or system by which goods and services are produced, sold, and bought (Merriam-Webster, 2016). The economic process that we will mainly focus on is capitalism. In a capitalist society, the main goal of any firms is simply to make profits for the owner. In the following essay, I will attempt to explain why do

1.According to Smith what should the role of Government be in the economy? Smith believed the government should adopt a “Laissez-Faire” altitude, leaving the economic decisions in the hands of those it directly affects, the businessmen and the consumers.

Karl Marx on the other hand, has a wildly different opinion on property. In his most famous piece, The Communist Manisfesto, Marx’s opinion is set up in one line; "… the theory of the Communists may be summed up in the single sentence: Abolition of private property” (Marx in Cahn 885). Marx firmly believed that ownership of private property was a way in which the social classes became more divided, and in turn, a way to oppress the poor. His opinion largely stems from the time period in which he lived (1818-1883), where factory owners infamously underpaid employees for dangerous work in treacherous conditions. However, Marx idea of private property was a bit different from Locke and did not mean things like land ownership or personal items, but the relation of individuals used for the means of production in a privately owned enterprise. Marx points out however, that in this state, unlike the ideas and time of Locke (1632-1704), the laborers do not benefit or acquire any property from their labor. In fact, the capital they are producing is the “kind of property that exploits wage labor” (Marx in Cahn 886) and serves to oppress them and further the division of classes. Therefore, Marx aimed to take this “private property” and give it to the Proletariats in order to change its status from the elite ownership of the Bourgeoisie, to the

The liberal perspective on political economy is embodied in the discipline of the Western economics (Gilpin, 1987). It emphasizes the individual interests, the freedom and the maximization of economic benefit. Economic

In the Wealth of Nations, Adam Smith claims a “well-governed” is a prerequisite for a society to be able to experience universal opulence wherein even individuals from the lowest socio-economic strata are able to bask in prosperity. However, he goes on to imply that even without government intervention, the mechanism of the “invisible hand” would effectively provide for a society. This sets up an immediate tension as it pertains to the role of a government in managing its economy and social welfare: what degree of governmental action is optimal? And more importantly, what motivates government policy? In the realm of international political economy, Smith decries his government for its active role in colonialism and mercantilism; practices

Economic system in the world is mostly productive in America this is due to the constant unlimited wants of its people and the fact that most people have high standards of living (Rosefielde, 2008). An individual has different wants and at any particular time an individual can satisfy his or her wants through purchasing these goods therefore there is an unlimited wants for goods and services. In recent times people consume goods that they don’t produce they sell or provide services then the income they gain from the services they purchase the goods that they want to consume. In this paper I will discuss the developed theories of the classical political economy developed theories and discuss on their different characteristics. These theories were mainly concerned with the changing aspects of economic growth in different centuries.

The definition of political economy is not simple. This essay uses the definitions given by Vincent Mosco and explores its origin in Greek and inspiration from the Classical Political Economy. Apart from the Classical Political Economy, this essay also describes other forms of this approach, such as Critical Political Economy and Neoclassical Political Economy. Latter the characteristics of political economy study are also discussed based on Vincent Mosco’s work in the 1990s.

A classical political economy is a branch of social sciences which deals with the studies of relationships between individuals and society and between markets and the governing state, using a different tools and methods from various discipline of social sciences like economics,political science, and sociology. The term political economy is emerge from the greek word polic, i.e “city” or “state,” and oikikonomo, meaning “one who take care or able to manage a household or estate.” Political economy can be understood by the study of relationship between how a country public’s household is managed or governed in order to establish the relation between political relation and economy.

Economy and State: A Sociological Perspective, written by Nina Bandelj and Elizabeth Sowers, explains the economic foundation of the state by discussing the governance of property and money, in correlation to labor and firms, ending in economic development and internationalization/globalization. Bandelj and Sowers’, target audiences for this book seemed to be intended for those individuals wanting to learn the basics of economics from an economic sociology perspective allowing readers to broaden their minds, while drawing comparisons from the political economy and economic sociology. This book was written with clear language for the audience to understand and comprehend the large amount of traditional economic theory information within its condensed size, as well as introducing a sense of economic sociology in to the mix. Both Bandelj and Sowers separate their book into eight chapters: ranging from property and money, labor and firms, development and the international global economy, before its conclusion. Authors Nina Bandelj and Elizabeth Sowers, provide a wonderful analysis between economy and sociology by breaking down the study of economics including the production, distribution, consumption, and exchange of goods and services and its direct correlation to social networks, cultural reality so to speak, and political and social forces.

The foundation of his philosophy was illustrated by the “invisible hand” of individual self-interest, which left to its own devices, would ensure the greater good of society. Rooted in this concept was the supremacy of the individual over the state. As explained by Sandmo (2009), “we do not find in Smith’s work any systematic attempt at aggregation of individual interests” and “it is in the light of consumers’ interest that we must judge the effects of the individual hand” (Sandmo, 2009, p.51). With this emphasis on the individual and complete faith on the market mechanism’s ability to allocate resources, the role of the State was relegated to the case of a “night watchman”, as per Sandmo (2009). The limited three-pronged scope of work for the government that Adam Smith envisaged, included providing protection from external forces, ensuring the protection of individual members’ of the state from injustice and oppression and and erecting institutions for the wider welfare of society (Medema and Samuels, 2000, p. 151,152).

The study and the use of economic theory and how the methods influenced political ideology. Political economy is the interaction between economics, law and politics, and how institutions develop in different social and economic systems such as capitalism, socialism and communism. Political Economy Analysis of how public policy is created and implemented. Because different individuals and groups have different interests in how a country or economy is to develop, economics as a discipline is a complex area, covering a wide range of potentially competing interests. Political economy also involves the use of game theory, as groups compete for limited resources and power should determine courses of action that will yield the most beneficial results, and that the probability of these results are being reached.

Cultural policy is the area of public policy-making that governs activities related to the arts and culture.

Political economy is a branch of social science. The term of political economy has come from Greek word ‘polis’ means city or state and ‘oikonomos’ meaning one who manages a household or state. So we can tell political economy thus can be understood as the study of how a country or household is manage or governed taking into account both political and economic factors (David N Balaan)