Power Theory of Economics

Let us begin by explaining what is meant by social power or, in short, power. Despite the fact that in the sciences of jurisprudence and politics power, or force, plays a crucial role, the true meaning of this is insufficiently explained. The effects of power upon an economy are conspicuous, but for the most part ignored. The influence of power on the development of culture, too, has been scarcely touched upon. There is a common reason for this: namely, that clarifying the true nature of social power is very difficult.

The various constituents of power are always bound together in some form or another to make up concrete power. What binds them together are the rights possessed by certain groups. The rights possessed by such groups unite the various constituents of power and form the concrete powers of these groups. However, there are various aspects to these rights, and it would be difficult to deal with them all exhaustively here. I shall therefore cite only the most typical of them. What I shall explain here are the concrete forms of power in the sense that I indicated previously. This concreteness resides chiefly in the persons to whom power belongs, and is therefore determined by the rights they enjoy. So, then, how are we to consider some of the typical rights of representative groups?

The nature of the relationship between power and the economy is a very complicated problem, and one on which there are many angles. It is not possible to discuss all these perspectives, so we shall be concerned with only a few selected points.

In this chapter let me first state the reasons why it is necessary at the present time to insist upon a Theory of Power vis-a-vis current economic theory. Next, there have been many critiques in the past by influential scholars of the views of those who attempted to incorporate the operation of power into economic theory; that is, critiques of power theory. I would like to say why these cannot be endorsed. Last, I would like to talk about what particular conclusions can be drawn about important questions in economic theory from views such as mine: that is, from the Theory of Power in the sense that I mean it. Therefore, what I shall talk about first are the criticisms from my point of view of usual theories of power. Then I shall discuss the counter-critiques, and lastly the conclusions that can be drawn from a viewpoint such as mine.

From this point on I intend to present a critique of the criticisms levelled at the view which would introduce elements of power into economic theory. But before I do so, I.should like to give a brief explanation of the meaning of power.

From this point on I shall speak of what conclusions can be drawn from the theory of power described in the foregoing with respect to a variety of problems in economic theory. In general, it is difficult to gainsay what contemporary economic theory tells us, provided we can accept its assumptions. However, I base my position on the argument that we are unable to understand economic realities adequately by means of this theory because its assumptions are so far removed from the facts of the real world. For this reason, I chose to construct a theory of power as a second approximation, as it were, to the economies of the real world. We can only begin to evaluate this so-called second approximation by asking what conclusions can be derived from it. Therefore I shall describe the various conclusions that can be derived, and leave the world of scholarship with the decision as to what value it possesses.

Let me add a few other contributions to the theory of power. There are two things which ought to be stated.