214
economic growth as a paramount policy objective. It is argued that this objective is
central to a political regime of oligarchy and that Canadian governance has de facto
been oligarchic. The results have been an excessive rate of economic growth, a substantial increase in economic inequality and degradation of the nation’s environment all of which are inconsistent with the common good of democracy. Democratic
outcomes can be achieved with a much lower rate of economic growth than has been
the case in Canada especially since 1979. An example of policies of political economy for achieving democratic outcomes in Canada is taken from environmental
economist Peter Victor’s book Managing Without Growth. Specifically, Victor
shows how the rate of Canada’s economic growth over a 30-year period could be
reduced by 50% and at the same time, the incidence of poverty would be reduced by
50% while greenhouse gas emissions would be reduced by 31%. Victor shows that
greenhouse gas emissions would be 60% lower than they would under a “business
as usual” model projection of higher growth and other greenhouse gas policies that
actually occurred in Canada over the period 1979–2006.
2 What Is Political Economy?
Political economy is an interdisciplinary study that draws upon the disciplines of
economics, political science and sociology to analyze how economic systems are
managed in political regimes of states to serve the interests of groups of their citizens (Wikipedia, Political Economy). These disciplines are social sciences in the
sense that they employ the same scientific methods of figuring out the causality of
empirical observation as are employed in the natural sciences. The difference is that
they incorporate empirical social facts made by humans which are much different in
kind from the facts of natural science. French philosopher Auguste Compte, who
defined the term sociology in 1838, regarded sociology as the scientific understanding of social phenomena that could unify history, psychology and economics
(Wikipedia, Sociology).
Economics is the study of the use of scarce resources to satisfy unlimited human
wants (Lipsey et al. 1988, p. 5). It is about the instruments of efficient allocation
without any specification of the value or purpose served by the satisfaction of those
wants. Thus, like science, it is value free. Economic systems are about the production and distribution of goods and services among citizens and international trade
and investment between states. Economics is central to analyzing economic systems
but, while it is rational, it is narrow and limited because it excludes political and
social considerations (Wikipedia, Political Economy).
Political science is about the theories, practices and facts of politics of governance that are about resource allocations through the tax expenditure system and
government management of the economic system. Governance institutions include
electoral systems, the legislature, executive and political parties. Much political science is derived from public choice and social choice theories. Public choice theory
P. Venton
economic growth as a paramount policy objective. It is argued that this objective is
central to a political regime of oligarchy and that Canadian governance has de facto
been oligarchic. The results have been an excessive rate of economic growth, a substantial increase in economic inequality and degradation of the nation’s environment all of which are inconsistent with the common good of democracy. Democratic
outcomes can be achieved with a much lower rate of economic growth than has been
the case in Canada especially since 1979. An example of policies of political economy for achieving democratic outcomes in Canada is taken from environmental
economist Peter Victor’s book Managing Without Growth. Specifically, Victor
shows how the rate of Canada’s economic growth over a 30-year period could be
reduced by 50% and at the same time, the incidence of poverty would be reduced by
50% while greenhouse gas emissions would be reduced by 31%. Victor shows that
greenhouse gas emissions would be 60% lower than they would under a “business
as usual” model projection of higher growth and other greenhouse gas policies that
actually occurred in Canada over the period 1979–2006.
2 What Is Political Economy?
Political economy is an interdisciplinary study that draws upon the disciplines of
economics, political science and sociology to analyze how economic systems are
managed in political regimes of states to serve the interests of groups of their citizens (Wikipedia, Political Economy). These disciplines are social sciences in the
sense that they employ the same scientific methods of figuring out the causality of
empirical observation as are employed in the natural sciences. The difference is that
they incorporate empirical social facts made by humans which are much different in
kind from the facts of natural science. French philosopher Auguste Compte, who
defined the term sociology in 1838, regarded sociology as the scientific understanding of social phenomena that could unify history, psychology and economics
(Wikipedia, Sociology).
Economics is the study of the use of scarce resources to satisfy unlimited human
wants (Lipsey et al. 1988, p. 5). It is about the instruments of efficient allocation
without any specification of the value or purpose served by the satisfaction of those
wants. Thus, like science, it is value free. Economic systems are about the production and distribution of goods and services among citizens and international trade
and investment between states. Economics is central to analyzing economic systems
but, while it is rational, it is narrow and limited because it excludes political and
social considerations (Wikipedia, Political Economy).
Political science is about the theories, practices and facts of politics of governance that are about resource allocations through the tax expenditure system and
government management of the economic system. Governance institutions include
electoral systems, the legislature, executive and political parties. Much political science is derived from public choice and social choice theories. Public choice theory
P. Venton