POL208Y1 Lecture : POL208 Second Semester Master Review package.pdf
Document Summary
[holding!that!supply!creates!its! own!demand!so!supply!and!demand!will!always!be!in!balance])!argues!that!capitalist!economies! tend!toward!overproduction,!conflicting!with!the!capacity!of!consumers!to!purchase!those! goods: he!predicted!that!crises!based!on!overproduction!would!become!more!and!more!severe! until!they!sparked!a!proletariat!revolution! the!law*of*concentration*of*capital!holds!that!the!increased!need!for!resources!requires! increased!efficiency!and!capital,!resulting!in!increased!concentration!of!wealth!in!the!hands!of!a! few!and!growing!impoverishment!of!the!many! (leading!to!a!revolution)! the!law*of*falling*rate*of*profit!states!that!as!capital!accumulates!and!becomes!more!abundant,! the!rate!of!return!declines,!decreasing!incentive!to!invest! Gilpin, r. : three ideologies of political economy. (2) Ideology: system of thought and belief by which individuals and groups explain how their social system operates and what principles it exemplifies: economic nationalism practices the primacy of politics over economics. The liberal perspective: set of values from which liberal theories of economics and politics arise, free markets and minimal state intervention, all forms of liberalism committed to markets and price mechanisms as the best way to. Individual consumer/ firm is the basis for society: assumes economics to be an empirical science of maximizing behaviour, market economy exhibits an inherent tendency towards equilibrium and stability. The nationalist perspective: labels have changed from mercantilism, statism, protectionism, and recently, new. Protectionism: ascribes to the primacy of the state, national security, and of military power in the organization and functioning of the international system.
