Foundations of Political Economy
Compilation Document
Contents
Foundations of Political Economy Tutorial 1 12-2.................................................................................2
Foundations of Political Economy Tutorial 2 26-1.................................................................................3
Foundations of Political Economy Tutorial 3 11-3.................................................................................4
Foundations of Political Economy Tutorial 4 15-4.................................................................................6
Foundations of Political Economy Tutorial 5 29-4.................................................................................8
1
, Foundations of Political Economy Tutorial 1 12-2
- What is the difference between economics and economy?
o Economics = the study/the academic discipline of the economy as a whole
o Economy = conducting economic activity/the system/the object of the discipline of
economics
- What is the difference between economics and political economy?
o Political economy is more about the society and
politics/multidimensional/multidisciplinary
o Political economy is about multiple different perspectives
o Political economy studies how the economy works bny taking multi-disciplinary
approach that draws from different schools of thought in economics, but other
disciplines
o Economics is very neoclassical (supply, demand, mathematical, equilibrium) and
political economy is more about how economy works
*Class debate about the reader responses*
Reader response template is on blackboard pay specific attention to the role of the state (EXAM!)
ted talk
- Climate change
- Fossil fuel
- Harness capitalist power to solve climate change
- Capitalist climate activist
- Market failure: too much of something will be consumed if it is priced too low
- The price of fossil fuel was too low we used too much of it the actual cost of harmful
emissions is unpriced
o The actual cost of fossil fuels such as coal should take into account the cost of
environmental damage or health damage done
- Climate change is a capitalist market failure (capitalism has failed to protect the planet)
- Good for the environment does not equal bad for business
- Combine environmental laws such as carbon taxes with the already in place capitalist system
- Innovate for better environmental performance
Text: excerpts from: Fred Magdoff and John Bellamy foster. 2011. What every environmentalist
needs to know about capitalism. Monthly review press.
- Capitalism is inherently flawed
- This text is neo-Marxist
o The well being of the workers and the environment is overlooked in capitalism
- This text is more radical: solving climate change cannot go hand in hand
2
Compilation Document
Contents
Foundations of Political Economy Tutorial 1 12-2.................................................................................2
Foundations of Political Economy Tutorial 2 26-1.................................................................................3
Foundations of Political Economy Tutorial 3 11-3.................................................................................4
Foundations of Political Economy Tutorial 4 15-4.................................................................................6
Foundations of Political Economy Tutorial 5 29-4.................................................................................8
1
, Foundations of Political Economy Tutorial 1 12-2
- What is the difference between economics and economy?
o Economics = the study/the academic discipline of the economy as a whole
o Economy = conducting economic activity/the system/the object of the discipline of
economics
- What is the difference between economics and political economy?
o Political economy is more about the society and
politics/multidimensional/multidisciplinary
o Political economy is about multiple different perspectives
o Political economy studies how the economy works bny taking multi-disciplinary
approach that draws from different schools of thought in economics, but other
disciplines
o Economics is very neoclassical (supply, demand, mathematical, equilibrium) and
political economy is more about how economy works
*Class debate about the reader responses*
Reader response template is on blackboard pay specific attention to the role of the state (EXAM!)
ted talk
- Climate change
- Fossil fuel
- Harness capitalist power to solve climate change
- Capitalist climate activist
- Market failure: too much of something will be consumed if it is priced too low
- The price of fossil fuel was too low we used too much of it the actual cost of harmful
emissions is unpriced
o The actual cost of fossil fuels such as coal should take into account the cost of
environmental damage or health damage done
- Climate change is a capitalist market failure (capitalism has failed to protect the planet)
- Good for the environment does not equal bad for business
- Combine environmental laws such as carbon taxes with the already in place capitalist system
- Innovate for better environmental performance
Text: excerpts from: Fred Magdoff and John Bellamy foster. 2011. What every environmentalist
needs to know about capitalism. Monthly review press.
- Capitalism is inherently flawed
- This text is neo-Marxist
o The well being of the workers and the environment is overlooked in capitalism
- This text is more radical: solving climate change cannot go hand in hand
2
