Transcript Variations in Capitalist Economies

Variations in Capitalist Economies
Capitalism: Content & Form
What is capitalism?
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Definitions by "form"
system of private or corporate ownership of capital
goods and control over investment vs state ownership
& control
free market system vs state command/planning
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Definitions by "content"
social system based on the endless imposition of work
as the most fundamental form of social organization
"form" of this imposition may vary
Cold War Juxtapositions
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US & Allies vs Soviet Union & Allies
"Western" Capitalism vs "Eastern" Socialism
Private investment vs state investment
markets vs planning
e.g., Case & Fair chapter 24
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Only "mixed" economies in real world
 state enterprises in capitalist economies
 markets in socialist economies
Markets vs Planning
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Markets generally portrayed as "free", e.g.,
independence of buyers & sellers
Planning generally portrayed in terms of
government plans, e.g., Soviet 5-year plans
BUT:
buyers & sellers often NOT independent
both buyers & sellers PLAN & seek to manipulate
supply on the one side and demand on the other
market can be planning tool, used when useful
Non-independence
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Obvious case: oligopolistic collusion or intercorporate sales between subsidiaries
manipulate prices to avoid taxes, maximize overall
profits
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Govt - Corporate Contracts, e.g., Pentagon
often called the "real" welfare state
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Labor Market Arrangements between unions &
industry, e.g., closed shops, deals cut on wages to
eliminate "market" pressures
Corporate Planning & Markets
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Corporate planning
extensive, many corporations larger than most
countries, thus their planning greater than "central
planning" in such countries
planning of supply
who produces how much of what
manipulation of labor supply
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anti-unionism, unionism
immigration policy, practice
planning of demand --through manipulation of
advertising, mass media, ideology, etc.
Govt manipulation of Markets
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State has often accorded monopolies
Pentagon orchestrates oligopoly in defense
industry
Federal immigration policy "plans" labor supply
Federal policy on collective bargaining "plans"
role of labor markets
Federal manipulation of Agricultural markets, e.g.,
early 1970s, constrict supply, expand demand to
raise prices to increase value of exports
Market = planning tool
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So, we see "markets" being allowed to function
"automatically" when they give the desired results
"automatically" = manipulated only by participants
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But Markets are manipulated by state, or state
allows actors greater freedom to manipulate
markets to achieve desired results
Or, markets simply abolished and result dictated
by state with or without collusion of participants
Private Sector
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Private sector = business (+ ???)
Legal organization= forms of ownership
 proprietorship - indiv. liability
partnership - shared liability
corporation - limited liability, ersatz individual
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Industrial "organization"
market form (monopoly - perfect competition)
actual organization of production
Actual Organization
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Industrial "structure" a la Case & Fair, ch.3
manufacturing , services , finance
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Industrial "structure"
skilled craftspersons
Taylorism - scientific management - deskilling
Fordism - deskilled workforce - assembly line
Putting out - Big complexes of plants - "diffused
factory" - electronic cottage
Public Sector
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Public sector = government
Government (1994)
federal = 22.8% of GDP
state & local = 10.7% of GDP
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Government income = f(taxes) = T
Government expenditures = G
Structure?
state enterprises, R & D, trade, foreign affairs, war
Gc + GI
Global Structure
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1st, 2nd & 3rd Worlds
East - West
North - South
Hierarchy
Network
Note: "Macroeconomics" still very "nation"
oriented, trade brought in later, no "global"
economics.
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