POPP2406 Week 17
- Created by: Elizbooks
- Created on: 13-05-22 19:38
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- POPP2406 Week 17
- State is not just the government
- State has multiple responsibilities within the economy
- State has lots of institutions; the government, public sector bodies and organisations, public firms, legal bodies and regulatory firms
- Co-exist together but state can experience economic crises such as recession if institutions become severe
- State has lots of institutions; the government, public sector bodies and organisations, public firms, legal bodies and regulatory firms
- State has multiple responsibilities within the economy
- The State: Weberian (liberal) government
- Capitalism dominates due to its institutional power as states rely on private actors for investment opportunities
- But they do not have total power
- Capitalism dominates due to its institutional power as states rely on private actors for investment opportunities
- Basic needs for the state to survive
- Security/survival
- Puts institutions and resources in place e.g. army to ensure security and survival for citizens within that country
- Accumulation
- Capitalism purpose: creates private ownership through production and investment and seeks to make a surplus of profit from it
- Legitimation/welfare
- Welfare system seems legal and supports the interests of workers e.g. benefits system which can help consumption to continue
- Ecological (emerging)
- Environmental issues e.g. climate change becomes more significant and it is important that capitalism makes changes to address problems
- These factors can change due to structural situations
- Security/survival
- Two basic forms of power
- Instrumental
- Business and government instrumental power is interchangeable
- Business - economic resources and networks to influence or change gov policies or regulations
- e.g. lobbying
- Gov - have instrumental power over firms - can impose costs e.g. tax through threats
- e.g. regulations and laws
- Business - economic resources and networks to influence or change gov policies or regulations
- Business and government instrumental power is interchangeable
- Structural
- interchangeable
- Government/politicians will fulfil the needs of investors by creating regulations that align with their interests
- Government can punish businesses so firms will consider this in their decision-making and actions
- Instrumental
- State is not just the government
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