3.1.4 Classification of Economic Power
This classification of economic power describes the chapter segments, supporting analysis of how an economy can let everyone flourish.
People’s lives are deeply affected by economic power, so the acceptability of its governance is of prime importance. Previous sections have defined its objectives, its relationship to other dimensions of power, and the components of an economic system. The remainder of this chapter is divided as follows, with three segments of reference material followed by an analysis of the contentious issues which need to be resolved to meet the system’s objectives:
(3.2) The individual components of an economic system work together in the creation and use of wealth, as illustrated above (3.1.3). They are all necessary to the system, so they each wield some power: wealth cannot be created without both labour and materials, for example.
(3.3) The actors in an economic system interact with each other in a series of negotiations or ‘markets’. Supply and demand govern the power relationships between workers, manufacturing companies, service-providers and the finance industry – but government affects each of these markets through regulation, macroeconomic management and some direct action.
(3.4) Economic activity takes place at every level of subsidiarity – from an individual, through companies and countries, to the global economic system. It is partly conditioned by geography. Globalisation has eroded the significance of national boundaries, with industries and people moving around the world.
(3.5) The final segment of this classification of economic power examines some contentious economic issues that needs to be resolved for everyone to flourish as far as possible within the limits of the available funds. It makes use of material from previous segments above, and it applies the assessment criteria described in Chapter 2. The final section summarises the tensions in providing legitimate economic governance.
At this point, readers who are just seeking an overview of this book’s contents may wish to move to the next chapter (4). Alternatively, they may wish to go directly to a particular segment by following the above links or continue to read sequentially.
This page is intended to form part of Edition 4 of the Patterns of Power series of books. An archived copy of it is held at https://www.patternsofpower.org/edition04/314b.htm.