POL 2104 Chapter Notes - Chapter 4: Neoliberalism, Maximal Function, Human Capital
19 Oct 2016
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Document Summary
Political economy: the interaction between politics and the economy in a given country or internationally, to include how politics affects economies and how economies affect politics. Purchase power parity [ppp]: an adjustment made to income measures to account for differences in cost of living. Gdp does not provide much information about how income is distributed among people. Measuring poverty and inequality is thus important to the study of development. Inequality: distribution of access to goods like power, status and material resources. Gini coefficient: most commonly used measurement of income inequality, expressed as a number between 0 and 1, with 0 being total equality and 1 being maximal inequality. There are 2 types of perspectives on how the political economy works. Importance of free markets : neoliberalism: privatization, adam smith: wealth of nations, actions of the state are important: welfare state, human capital.
