Theoretical Perspectives on Political Economy
Political economy studies the natural laws governing the production and distribution of wealth in a community. Thus, political economists theorize the methods of achieving wealth in a community. They approach their theories by analyzing and explaining the methods governments and communities (local economies) employ to ensure their interests. But while William Sumner and Woodrow Wilson concerned themselves with communitiesÆ realization of economic and political interests respectively, John Dewey focused on individualsÆ realization of personal and humanistic goals as the ôwealthö that characterized his socio-political philosophy. Because it concerned itself with the individualÆs control of his or her community, rather than the communityÆs control of the individual, DeweyÆs political economy is the best theoretical perspective for a democratic society.
William Sumner argued in favor of an organic social order characterized by individuals who acted without an overarching central (or federal) direction or purpose. His theory of political economy was ôlaissez_faireö inasmuch as it argued that social forces should be allowed to control political and economic forces. He believed that such control would come from the interplay and evolution of thousands of individual human decisions and actions.
Sumner believed that industry and intelligence created wealth and argued against protectionism because he viewed such policies as artificial and mechanical, a sort of politico-economic social engineering that favored some businesses by harming some consumers (Arne). For example, Sumner argued against tariffs because he believed that workers in one industry would be required to work for either cheaper wages or longer hours to offset the cost of tariffs on the products they produced. Workers in other industries without tariffs, on the other hand, would not labor under a similar burde...