Political Economy A COMPARATIVE APPROACH Second Edition Barry Clark PRAEGER Westport, Connecticut London -iii- Library of Congress Cataloging-in-Publication Data Clark Barry Stewart, 1948- Political economy: a comparative approach / Barry Clark.- 2nd ed. p. cm. Includes bibliographical references and index. ISBN 0-275-95869-8 (alk. paper).- ISBN 0-275-96370-5 (pbk.: alk. paper) 1. Comparative economics. I. Title. HB90.C52 1998 330-dc21 98-15657 British Library Cataloguing-in-Publication Data is available. Copyright 1998 by Barry Clark All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 98-15657 ISBN: 0-275-95869-8 0-275-96370-5 (pbk.) First published in 1998 Praeger Publishers, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. Printed in the United States of America + TM The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48-1984). 10 9 8 7 6 5 4 3 2 1 -iv- Contents PART I POLITICAL ECONOMY: AN OVERVIEW 1 Chapter 1 Politics, Economics, and Political Economy 3 Politics and Economics 3 The Market as an Economic Institution 6 Government as a Political Institution 12 Government as an Economic Institution 15 Political Economy 18 Chapter 2 The History of Political Economy 21 Origins of Political Economy 21 Classical Political Economy 25 The Radical Extension 25 The Conservative Response 28 -v- Neoclassical Economics 31 Modern Political Economy 33 PART II CONTENDING PERSPECTIVES IN POLITICAL ECONOMY 39 Chapter 3 The Classical Liberal Perspective 41 Architects of Classical Liberalism 41 Principles of Classical Liberalism 48 Classical Liberalism Today 49 An Assessment of Classical Liberalism 52 Chapter 4 The Radical Perspective 55 Architects of Radicalism 55 Principles of Radicalism 63 Radicalism Today 64 An Assessment of Radicalism 68 Chapter 5 The Conservative Perspective 71 Architects of Conservatism 72 Principles of Conservatism 79 Conservatism Today 81 An Assessment of Conservatism 85 Chapter 6 The Modern Liberal Perspective 89 Architects of Modern Liberalism 89 Principles of Modern Liberalism 97 Modern Liberalism Today 98 An Assessment of Modern Liberalism 101 PART III CONTEMPORARY ISSUES IN POLITICAL ECONOMY 105 Chapter 7 Government and the Market 107 The Classical Liberal Perspective 107 The Radical Perspective 114 The Conservative Perspective 118 The Modern Liberal Perspective 122 -vi- Chapter 8 Inflation and Unemployment 133 The Classical Liberal Perspective 133 The Radical Perspective 138 The Conservative Perspective 143 The Modern Liberal Perspective 146 Chapter 9 Poverty and Inequality 157 The Classical Liberal Perspective 158 The Radical Perspective 163 The Conservative Perspective 168 The Modern Liberal Perspective 172 Chapter 10 Labor and Industry 183 The Classical Liberal Perspective 183 The Radical Perspective 187 The Conservative Perspective 192 The Modern Liberal Perspective 195 Chapter 11 Minorities and Discrimination 203 The Classical Liberal Perspective 204 The Radical Perspective 207 The Conservative Perspective 210 The Modern Liberal Perspective 213 Chapter 12 The Political Economy of Gender 219 The Classical Liberal Perspective 220 The Radical Perspective 224 The Conservative Perspective 228 The Modern Liberal Perspective 232 Chapter 13 Education and Culture 241 The Classical Liberal Perspective 242 The Radical Perspective 245 The Conservative Perspective 251 The Modern Liberal Perspective 255 Chapter 14 Pollution and the Environment 263 The Classical Liberal Perspective 264 The Radical Perspective 268 -vii- The Conservative Perspective 272 The Modern Liberal Perspective 274 Chapter 15 International Trade and Development 283 The Classical Liberal Perspective 284 The Radical Perspective 288 The Conservative Perspective 292 The Modern Liberal Perspective 295 Chapter 16 Science, Ideology, and Political Economy 307 Economics as Ideology 311 Rejoinders from Economists 315 The Science of Political Economy 318 Conclusion 322 Bibliography 329 Index 353 -viii- Introduction Political economy was the original social science. Theorists such as Adam Smith, John Stuart Mill, and Karl Marx developed broad visions of the social system. Not until the latter h