Political Economy of Social Welfare
I. Introduction
Popular opinion refers to the sentiment, belief or view shared or held by the majority of the public about a particular issue of interest. On the other hand, socialization process refers to the way through which people interact to discuss an issue that affect their daily lives. When it comes to media, it has a wide influence on public opinion and can sway the views held by people about a particular topic of interest (Shamir & Shamir, 2000). In short, media help in shaping the popular opinion, especially so when people respond to their priorities and needs. Moreover, media also influence the way people perceive a particular issue by means of the analysis of the available facts (such as, black propaganda), which more likely to affect the public’s opinions about a particular societal concern.
II. Political Economy of Social Welfare: An Analytical Review
The process of forming a public opinion starts with the setting of agenda about the topic of interest. The media typically do it through the process of socialization or the adoption of patterned behavior for social, economic, political and other purposes. The setting of the agenda determines what is worthy to be broadcasted as news before it is reported to the public (Shamir & Shamir, 2000). The way in which the issue is reported publicly is intended to play a very big role in the determination of the perception, motivation and behavior of a large number of people.
The formation of public opinion is also influenced by way of framed broadcasted news. The framing process determines how well the issue will affects the public so as to sway their views and opinions about an interesting side of the issue (Shoemaker & Reese, 2006). For example, in forming a political public opinion, the news being broadcasted may be framed by the media in a particular manner to favor a particular political candidate. The role of public opinion has been widely applied by economists in trying to influence the economic order for it to function in their own stipulated way. For example, economists in favor of socialism are interested in framing news in a manner that portrays socialism as evil and should not exist in society; on the other hand, capitalists portray economic news to be in favor of capitalism and help in shaping the ways that the capitalist economy functions to maintain ruthless and unforgiving competitions.
In addition, the desires, motivations and behaviors of people in a society also determine the emerging or existing popular public opinion. By using social desirability and agenda of the media, news are framed in a manner that act to mislead the public and sway their opinions to believe and hence, hold popular opinions of what the media prefer people to believe as good (Shoemaker & Reese, 2006). As a result, the public may be swayed to believe in holding an opinion that is popular but not true – or that is very far from the truth. When the popular opinion becomes widespread and widely accepted, it becomes one of the criteria or standard for what is assumed to be true, generally.
Most likely, there is a very wide gap that exists between popular opinion and Stanford’s interpretation of the economic reality. The public has been made to believe in holdin fast to the view that capitalist economy functions far much better than the socialist economy. These days, such is the popular economic opinion that is held in the world. However, Stanford, in his book “Economics for everyone,” has formulated the facts wherein he mentioned that capitalism’s “financial industry, is not, in itself, productive” (Stanford, 2008, p. 338). His reason is that capitalist financial activity is downright destructive in the production of useful goods and services because what it does is nothing less than the purchase and resale of paper assets.
Further, Stanford also claimed that economics depends on social relationships and is very dynamic as opposed to the particularly held opinion, such that the economy is not natural, unchanging or objective. Stanford puts the facts that capitalist economists only use the popular public opinion to create a false financial deceit. He also argued that economics is not a science but an of art of financial deception which aims to explain to the poor masses the reasons why they should be poor while others in the economy become or stay affluent. He says that capitalist economy is not designed to bring any good or is not in the favor of public interests since the economy is controlled by private investors and the drive for economic prosperity is not based on the pursuit of public interest, but rather on pursuit of private self-interests caused by greed, ruthless competition, and more by fear, that is, for corporations to behave in certain ways.
Additionally, Stanford argued that contrary to the popular opinions, the good things that came as a result of capitalism were the result of chance or accident and that they were not planned as it was widely held (Stanford, 2008). He stated that the government in a capitalist system is, as it is commonly believed, not the enemy of the free-market capitalism; but rather, he went further to claim that the government only functions to facilitate and promote capitalism in disguise of the pursuit of private interests (for example, guaranteeing of private property rights, expansion of free markets, management of social relationship). Government’s actions have thus reinforced and stabilized capitalism’s functionings and relationships in a highly competitive global arena.
Stanford has suggested several facts that if well understood, the government can change economic policies for the pursuit of public interest rather than private interests. He suggested that if the private property could be placed under the state ownership or ownership of non-profit making companies, the economy would be enhanced since the motive of these institutions would be profit maximization rather than the pursuit of own non-public interests. Many resources that are spend in making advertisements and pushing for responsible operation of the business by private investors could be placed in production of more resources and elimination of poverty for the economic empowerment of all people (Stanford, 2008).
Stanford also suggested that a larger role for economic planning is for all actions to aim at promoting the welfare of the public rather than welfare of the private investors. Such will serve as an effective tool for the elimination of processes that are enforced under capitalism, such as the use of for the conservation of the environment (Stanford, 2008). He went further to suggest that financial institutions are not themselves productive. They do not contribute to any increase in the production of goods and services. Players only use paper assets in exchange of resources that could have been invested rather in the economy to help in the production of goods and services.
There is very a very close relationship between the social policy and the economy as suggested by Stanford. Social policy is designed and framed in a manner that aims at promoting the social justice in the society by ensuring fair distribution of natural, social and economic resources over generations (Spicker, 2012). Capitalist society is made of two groups of people: the rich and the poor masses. The government functions to promote the welfare of the businesses and also legitimize the system to ensure that there are social welfare programs, heath pension schemes and other social programs that are aimed at protecting the public interests and facilitating the increased flow of resources from the rich to the poor (Kennedy, 2003). However, Stanford suggested that this relationship is not fulfilled in a capitalism economy and the government only pretends to be legitimate. He argued instead that this relationship exists well in the socialism economy since all economic decisions and actions are aimed at promoting the public welfare. In such latter society, there is a wide conflict of ideas as suggested by Marx or Marxist ideology.
III. Concluding Remarks
In this analytical essay, I have presented the influence of socialization and media coverage upon popular opinion; the gap between popular opinion and Stanford’s interpretation of economic reality; the facts or concepts which, if generally understood, might change economic policy; the close relationship between economic and social policy; the implications of changes suggested Stanford; and generally, the discussions of economic policy. Stanford’ suggestions have the effects of introducing a socialism economy. The placement of controls of the privately-owned property in the hands of the state or non-profit pursuit industries would have an effect of weakening the society. This is because he has not taken into consideration the facts that nobody likes to work. If there are no incentives for work, people would work less; thus, it would lead to decrease in productivity and output.
Moverover, the incentives for work in capitalist economy are mainly due to pursuit for profit maximization and creation of wealth. If these incentives are removed, people will work less and this would lead to decrease in output and productivity. Therefore, Stanford’s suggestions will have negative effects on the environment and will lead to decreased productivity. To the contrary, the suggestions of tightening the government regulations on private ownership would have a positive effect on promoting the social welfare of the poor masses in society. This would also ensure the protection of the environment which is very essential in ensuring maximum production of goods and services from natural resources.
For me, then, a well-functioning economy should be an economy that promotes capitalism but also with a government’s legitimized system. Such would ensure a balanced and safeguarded privately- and publicly-held goods, services, interests, resources, etc. for even the most disadvantaged and marginalized members of society.
References
Kennedy, L. (2003). Economic theory of co-operative enterprises: selected readings (1st ed.). Oxford: Plunkett Foundation for Co-operative Studies.
Shamir, J. & Shamir, M. (2000). The anatomy of public opinion. Ann Arbor: University of Michigan Press.
Shoemaker, P. & Reese, S. (2006). Mediating the message: theories of influences on mass media content (3rd ed.). New York: Longman.
Spicker, P. (2012). Introduction to Social Policy. The Robert Gordon University, Aberdeen. Retrieved on September 25, 2013 from www2.rgu.ac.uk/publicpolicy/introduction/pol.htm
Stanford, J. (2008). Economics for everyone: a short guide to the economics of capitalism. Halifax: Fernwood Publishing.
