POPP2406 Week 17

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  • 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
    • 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
    • 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
    • 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
      • 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

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