Both their theories have provided a better understanding of our society by examining our society and the crucial elements within it at a deeper level. Alienation then, is the breakdown of the interconnectedness in society imposed by the structure of society that is, to Marx an important part of life. Well, at least in an ideal sense. Anomie is defined as a state reached when society is marked by unchecked economic progress. Although Marx and Durkheim approached the issue of modern society in different analytic manner, there is one thing that is undisputed, it has greatly impacted sociology today and maintain a level of truth as well as value for the future.
These are: economic, legal and social; this paper will thus seek to show how the three interact and posit that the economic dimension is most influential in employment relationships. Employment relationships at its basic level revolves around economics, this is highlighted by the neoclassical economics which provides a theoretical approach on how employment relations take a form of economic transactions the world over. This is because individual laborers and firms are keen on maximizing utility and profits respectively from scarce resources based on market determined prices which are beyond their control. For example, the employees are often seeking work using their individual skills at a price offered by the firms. After which, they can enjoy utility of that wage through consumption; whereas, the capitalists or firms seek to maximize their profits by producing goods and services from the employees which is covered by wages.
Colander (2006) describes economics as “the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (p. 4). The foundation of economics is based on several factors that assist in understanding an economy. These factors include economic reasoning, economic insights, economic institutions, and economic policy options. Economic reasoning is a way of thinking that weighs an option based on costs and benefits. Terms such as marginal costs, marginal benefits, and opportunity cost explain economic reasoning in more detail.
The book “The worldly philosophers” is an analysis of great minds’ contributions to the field of economics with a broader view of crucial economic aspects that include political and social factors. In that respect, this analysis summarizes the author’s view of what economics comprise of in light of their analysis of different economists’ contributions. Further, the analysis explains the author’s view on the subject of comparative advantage citing the book’s strengths and weaknesses as well as the author’s position on the subject. Finally, the analysis provides reasons for agreeing or disagreeing with the authors’ position. Discussion 1.
Analytic approaches to Economic Structuralism tend to vary with the problem being examined. Issues can be viewed from several different theoretical perspectives, including the mercantilist, liberal, and Structuralists (Marxist or neo-Marxist) perspectives. Realists, focus on competing interests and capabilities of nation-states in a competitive struggle to achieve power and security. Liberals are optimistic about the ability of humans and states to construct peaceful relations and world order. Economic liberals, in particular, would limit the role of the state in the economy in order to let market forces decide political and social outcomes.
Hence, it is extremely important at this time to learn about the underlying power relations in our economy and how the two ideologies compare on important aspects of political economy. In comparing the two theories with respect to managing the level of unemployment, funding the welfare sates, and pursuing national or international objectives, I will argue that Keynesianism provides far greater stability, equ... ... middle of paper ... ...he real wage rate has been stagnant while productivity has risen. The disparities between the two views of the economy lead to very different policies that have produced contradictory results. The Keynesian theory presents the rational of structuralism as the basis of economic decisions and provides support for government involvement to maintain high levels of employment. The argument runs that people make decisions based on their environments and when investment falls due to structural change, the economy suffers from a recession.
This book has made me question the long term sustainability of the already evolving economic globalization process. Rodrik explains that the process of globalization must be managed so that the entire world can benefit. The first point that Rodrik makes is that markets are limited by the scope of governance or regulation. He argues that markets and governments are most effective when they are operating in accordance with one another. This theory seems to stem from a theory earlier developed by the famous economist Adam Smith, which was that “the division of labor is limited by the extent of the market.” Rodrik expands on this theory by saying that not only is labor limited by the market, but that markets are limited by government.
In that discussion about planning Hayek poses the question of whether economic planning should be done by one economic entity or by several businesses and individuals. The concept of how knowledge is conveyed to these individuals, and that if society wants a central economic planning it must pay for inefficiencies, a decentralized economy means having function spread over many people. He says that the halfway point between centralized economy and a decentralized economy is a monopoly and in that structure the organized industries would control the economy. He then brings in the concept of efficiency and how if society wants the most of its resources and how it gets the knowledge to get that efficiency. Hayek then moves onto to say that society has ignored economic knowledge for the sake of scientific knowledge.
His work is usually recognised through his several publications, including The Communist Manifesto (1848) and Das Kapital (Capital) (1867-1894). Marx’s work in economics laid the foundation for the recent understanding of labour and its relations to capitalist system, and previous economists and academics (Schumpeter, 1952; Hicks, 1974) believe that his work has influenced much of the consequent economic thought, as well as more recent academics (Unger, 2007). Marx’s theories about society, politics as well as economics encourage the notion that human societies progress through a conflict between an ownership of class that controls production and a dispossessed... ... middle of paper ... ... The Rules of Sociological Method. NY: The Free Press.
Using economic and institutional affiliations that of which requires cultural edgework defines the middle class system. The controversial debate as to whether the middle class is defined by cultural or economic factors has been supported successfully by both sides. Karl Marx states his opinion clearly that economic factors are the basis of a class system. Marx explains that through a capitalist society where the means of production and social and political representation are the structure of the society. Judith Blau agrees with Marx that economic factors create a society however, cultural reasons define it.