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      The Power of Economics vs the Economics of Power: Introduction

      research-article
      World Review of Political Economy
      Pluto Journals
      power, ideology, economics
      Bookmark

            Abstract

            This article analyzes the systematic absence of power in economic analysis, beginning with early economist's almost universal denial of the process of primitive accumulation. Microeconomics also excludes considerations of power, except for what it considers to be abuse of power by government and labor unions. Monetary theory also avoids the application of Federal Reserve power to create unemployment in order to reduce wages. Businesses also employ power in competing with other businesses. Economists ignore such use of power, emphasizing the benign consequences of competition: lower prices, improved quality, and even entirely new products. Business wields power against workers, the power that might be limited by labor unions, which themselves are limited because of business' application of political power. Not only can business use monopolistic power in order to increase prices, as buyers, business can use monopsonistic power to reduce the prices it pays. Business can also apply power in order to hamper competitors. The final form of power is the power of economists to exclude power from their theory, except for the two exceptions mentioned.

            Content

            Author and article information

            Journal
            10.13169
            worlrevipoliecon
            World Review of Political Economy
            Pluto Journals
            2042891X
            20428928
            Fall 2014
            : 5
            : 3
            : 284-296
            Article
            worlrevipoliecon.5.3.0284
            10.13169/worlrevipoliecon.5.3.0284
            94431c51-1c4c-442c-977b-fbcbbc1090d8
            Copyright 2014 World Association for Political Economy

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Categories
            Articles

            Political economics
            economics,ideology,power

            References

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