Economics and Power - A Marxist Critique

In the economic debate, power is defined and studied mainly as an interpersonal relation occurring out of perfect competition. This is a consequence of the combination of methodological individualism and the assumption of competition as a natural and everlasting coordinating mechanism, operating without any sort of coercion. This methodology, however, is not adequate to analyze the forms of social coercion that characterize capitalism.

Economics and Power criticizes the main theories of power developed in economic literature, analyzing ultraliberal contractualism to radical political economics, and ultimately suggesting a Marxist conception of power and coercion in capitalism. Palermo's ontological argument is rooted in the philosophy of 'critical realism'.This unique volume presents his main finding as being that the essential coercive mechanism of capitalism is competition. Capitalist power is not caused by a lack of competition, but by the central role it plays in this mode of production. Following this, the chapters reconstruct a Marxian conception of power where it is analyzed as a social relation and argues that perfect competition does in fact exist under the disguise of capitalist power. This book criticizes the construct of power and the underlying ideas surrounding perfect competition.

This book is of interest to those who study political economy, as well as economic theory and philosophy.

List of contents

Foreword and acknowledgements
1. Introduction
The dimensions of power in social sciences
The unidimensional view of power in economics
Methodological choices and ontological necessities
Historical materialism, exploitation and social coercion
Marx's critique of capital and the critique of power
Structure of the book
PART I. POWER IN ECONOMICS
2. The economic debate on power
The contractual approach of Alchian and Demsetz
Williamson's transaction costs economics
The property rights approach of Hart and Moore
The radical political economics of Bowles and Gintis
Golfberg's institutional perspective
The terms of the debate
3. Power and post Walrasian economics
Post Walrasian economics
From Walrasian to post Walrasian economics
The theoretical results of Walrasian economics
The role of perfect competition in the debate on power
Conclusions
4. Power demystification
The categories of post Walrasian economics
As-if economic history
History and efficiency
Free contracting, imperfections and class relations
Exchange without production
Production, circulation, and the free trader vulgaris
Scientific research and cultural hegemony
Conclusions
PART II. THE ONTOLOGY OF CAPITALIST POWER AND THE COERCIVE LAW OF COMPETITION
5. Marx’s critique of capital and competition
Competition in Marx's work
Total social capital and competition between individual capitals
The origins of competition
Competition and the contradictions of capital
The development of competition and the process of capital subsumption
Association against competition
The end of competition
Bourgeois economics and the myth of perfect competition
Conclusions
6. Capitalism as a system of power
Critical realism
Critical realism and Marxism
The ontology of power
The ontology of capitalist power
Conclusions
7. Final remarks
Scientific goals, methodology and ontology
Formal similarities within opposite conceptions
Economists as servant of power
Reorienting the struggle

About the author

Giulio Palermo is Researcher in Economics at the University of Brescia, Italy.

Summary

This book criticizes the main theories of power in the economic literature, from ultraliberal contractualism to radical political economics, and ultimately suggesting a Marxist conception of power and coercion in capitalism.

Product details

• Authors: Giulio Palermo
• Publisher: Taylor & Francis Ltd.
• Languages: English
• Product format: Paperback / Softback
• Released: 29.07.2019
• EAN: 9780367250935
• ISBN: 978-0-367-25093-5
• No. of pages: 180
• Series: Routledge Frontiers of Political Economy
• Subject: Social sciences, law, business > Business > General, dictionaries