上浒充通大学 SHANGHAI JIAO TONG UNIVERSITY 1,Three Questions Q2,What is the purpose of the economy? Wealth translates into power (economic and military) Main purpose of national economy is to increase state power Gauge success in relative terms (i.e.,US trade deficit with China) L SHANC 1日
1, Three Questions Q2, What is the purpose of the economy? Wealth translates into power (economic and military) Main purpose of national economy is to increase state power Gauge success in relative terms (i.e., US trade deficit with China)
上浒充通大学 SHANGHAI JIAO TONG UNIVERSITY 1,Three Questions Q3,What is the relationship between politics and economics? Economics is subordinate to politics Economics a tool to be used for larger international political struggles Structures of the international economic system are largely determined by the interests of the major economic powers ALLA 1日G
1, Three Questions Q3, What is the relationship between politics and economics? Economics is subordinate to politics Economics a tool to be used for larger international political struggles Structures of the international economic system are largely determined by the interests of the major economic powers
上游充通大￥ SHANGHAI JIAO TONG UNIVERSITY 1,Three Questions Three Answers How does the economy work? Markets that tend to benefit the more powerful What is the economy for? To promote the power of the state What is the relationship between power and economics? 是 Politics and economics are inseparable
1, Three Questions Three Answers How does the economy work? Markets that tend to benefit the more powerful What is the economy for? To promote the power of the state What is the relationship between power and economics? Politics and economics are inseparable
上浒充通大学 SHANGHAI JIAO TONG UNIVERSITY 1,Three Questions Mercantilism (16th to 18th Century) Classical mercantilism: States'power dependent on treasure Gold is key to power of emerging sovereign states States seek to increase their holdings of gold and silver through: n Conquest and colonies Increase exports,decrease imports
1, Three Questions Mercantilism (16th to 18th Century) Classical mercantilism: • States‘ power dependent on treasure • Gold is key to power of emerging sovereign states • States seek to increase their holdings of gold and silver through: • Conquest and colonies • Increase exports, decrease imports
上游充通大学 SHANGHAI JIAO TONG UNIVERSITY 1,Three Questions Economic Nationalism and Neo Mercantilism: 19th and 20th century and beyond .. Industrialization seen as key economic goal Necessary to independence (sovereignty) Essential to military might (security) States need industrial development to survive (Friedrich List)S States should: 层是具 -Adopt high tariffs (protectionism) -Encourage development of national industries
1, Three Questions Economic Nationalism and Neo Mercantilism: • 19th and 20th century and beyond . . . • Industrialization seen as key economic goal • Necessary to independence (sovereignty) • Essential to military might (security) • States need industrial development to survive (Friedrich List) States should: – Adopt high tariffs (protectionism) – Encourage development of national industries