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Who’s	
  in	
  control	
  ?	
  	
  
Journal	
  entry	
  29/10/2010	
  
Steven	
  Lauwers	
  
	
  
If	
   the	
   market	
   controls	
   policy,	
   or	
   even	
   imprisons	
   it	
   as	
   Charles	
   E.	
   Lindblom	
   i	
  
argues,	
  how	
  do	
  we	
  strike	
  a	
  balance	
  between	
  the	
  interest	
  of	
  the	
  market	
  and	
  the	
  
interest	
  of	
  “we,	
  the	
  people”?	
  Who	
  controls	
  whom?	
  And	
  how?	
  	
  
	
  
Firstly,	
   I	
   would	
   like	
   to	
   specify	
   the	
   market	
   I	
   talk	
   about	
   in	
   this	
   journal	
   as	
   the	
  
market	
  as	
  economists	
  would	
  define	
  it:	
  the	
  place	
  where	
  sellers	
  offer	
  a	
  good	
  and	
  
buyers	
  buy	
  the	
  good	
  at	
  a	
  certain	
  price.	
  In	
  economic	
  theory,	
  a	
  perfect	
  market	
  is	
  
one	
   where	
   aggregate	
   consumer	
   and	
   producer	
   surplus	
   is	
   maximized	
   without	
  
government	
  intervention.	
  In	
  reality	
  a	
  market	
  cannot	
  be	
  seen	
  as	
  the	
  interaction	
  of	
  
only	
  the	
  consumer	
  and	
  the	
  producer.	
  
	
  
Earlier	
   this	
   week	
   I	
   listened	
   to	
   an	
   extremely	
   interesting	
   talk	
   by	
   Joseph	
   Nye	
   on	
  
TED.	
  ii	
  He	
  acknowledges	
  the	
  market	
  as	
  a	
  key	
  power	
  in	
  global	
  society,	
  but	
  also	
  
emphasizes	
  that	
  it	
  is	
  merely	
  one	
  of	
  the	
  powers.	
  I	
  think	
  it	
  is	
  too	
  easy	
  to	
  just	
  say	
  
the	
  market	
  controls	
  policy	
  and	
  that	
  is	
  just	
  the	
  way	
  it	
  is.	
  I	
  do	
  not	
  want	
  to	
  minimize	
  
the	
  influence	
  of	
  the	
  market	
  on	
  society:	
  I	
  agree	
  with	
  the	
  general	
  train	
  of	
  thought	
  
of	
  this	
  week’s	
  readings	
  in	
  that	
  markets	
  exert	
  a	
  very	
  strong	
  influence	
  on	
  policy	
  
making.	
   I	
   would	
   however	
   argue	
   that	
   this	
   influence	
   is	
   kept	
   in	
   balance	
   by	
   all	
  
players	
  involved	
  in	
  policy	
  making	
  and	
  that	
  the	
  market	
  does	
  thus	
  not	
  imprison	
  
nor	
  control	
  today’s	
  society.	
  At	
  least,	
  no	
  more	
  than	
  it	
  is	
  allowed	
  to	
  by	
  society.	
  
	
  
Normally	
  the	
  actions	
  of	
  a	
  democratically	
  elected	
  government	
  reflect	
  what	
  “we,	
  
the	
  people”	
  want.	
  So	
  if	
  a	
  substantial	
  influence	
  of	
  environmentalists,	
  as	
  Keleman	
  
and	
   Vogel	
   iii	
   describe,	
   is	
   able	
   to	
   push	
   the	
   political	
   agenda	
   so	
   much,	
   that	
   EU	
  
member	
  states	
  become	
  very	
  vocal	
  supporters	
  of	
  environmental	
  policy,	
  I	
  wonder	
  
in	
  how	
  far	
  the	
  market	
  was	
  part	
  of	
  this	
  change?	
  Granted,	
  the	
  government	
  will	
  not	
  
be	
   able	
   to	
   push	
   the	
   most	
   extreme	
   environmental	
   regulations	
   that	
   will	
   reduce	
  
firm’s	
   profit,	
   but	
   neither	
   will	
   it	
   be	
   able	
   to	
   defend	
   no	
   regulations	
   at	
   all	
   to	
   its	
  
voters.	
  Is	
  this	
  not	
  merely	
  finding	
  a	
  balance	
  between	
  all	
  players	
  of	
  society?	
  	
  
	
  
As	
  J.	
  Nye	
  concludes	
  in	
  his	
  talk	
  iv,	
  I	
  would	
  also	
  like	
  to	
  think	
  the	
  interaction	
  with	
  the	
  
market	
  is	
  not	
  necessarily	
  “zero	
  sum”,	
  your	
  loss	
  is	
  my	
  gain.	
  I	
  would	
  rather	
  like	
  to	
  
think	
  we	
  are	
  playing	
  a	
  –	
  difficult	
  –	
  game	
  of	
  “positive	
  sum”:	
  my	
  gain	
  (for	
  example,	
  
the	
  gain	
  of	
  society	
  from	
  carbon	
  emissions	
  reductions:	
  increase	
  in	
  health,	
  less	
  de-­‐
forestation,	
  reduced	
  costs	
  on	
  health	
  care,…	
  )	
  does	
  not	
  have	
  to	
  be	
  your	
  loss,	
  but	
  
can	
   also	
   be	
   your	
   gain	
   (firms:	
   healthier	
   workers,	
   increased	
   sales	
   because	
   of	
   a	
  
better	
  image	
  of	
  the	
  firm,…).	
  At	
  least	
  that’s	
  what	
  I’d	
  like	
  to	
  think.	
  
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
i	
  Lindblom,	
  Charles	
  (1982).	
  The	
  Market	
  as	
  Prison.	
  Journal	
  of	
  Politics,	
  44:	
  323-­‐336.	
  
ii	
  TED	
  (2010).	
  Joseph	
  Nye	
  on	
  global	
  power	
  shifts.	
  Internet.	
  
http://www.ted.com/talks/joseph_nye_on_global_power_shifts.html.	
  24.10.2010	
  
iii	
  Kelemen,	
  R.	
  Daniel,	
  Vogel,	
  David	
  (2010).	
  Trading	
  Places:	
  The	
  Role	
  of	
  
the	
  United	
  States	
  and	
  the	
  European	
  Union	
  in	
  International	
  
Environmental	
  Politics.	
  Comparative	
  Political	
  Studies,	
  43(4):	
  427-­‐456.	
  
	
  

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Journal 6: Who's in control

  • 1.   Who’s  in  control  ?     Journal  entry  29/10/2010   Steven  Lauwers     If   the   market   controls   policy,   or   even   imprisons   it   as   Charles   E.   Lindblom   i   argues,  how  do  we  strike  a  balance  between  the  interest  of  the  market  and  the   interest  of  “we,  the  people”?  Who  controls  whom?  And  how?       Firstly,   I   would   like   to   specify   the   market   I   talk   about   in   this   journal   as   the   market  as  economists  would  define  it:  the  place  where  sellers  offer  a  good  and   buyers  buy  the  good  at  a  certain  price.  In  economic  theory,  a  perfect  market  is   one   where   aggregate   consumer   and   producer   surplus   is   maximized   without   government  intervention.  In  reality  a  market  cannot  be  seen  as  the  interaction  of   only  the  consumer  and  the  producer.     Earlier   this   week   I   listened   to   an   extremely   interesting   talk   by   Joseph   Nye   on   TED.  ii  He  acknowledges  the  market  as  a  key  power  in  global  society,  but  also   emphasizes  that  it  is  merely  one  of  the  powers.  I  think  it  is  too  easy  to  just  say   the  market  controls  policy  and  that  is  just  the  way  it  is.  I  do  not  want  to  minimize   the  influence  of  the  market  on  society:  I  agree  with  the  general  train  of  thought   of  this  week’s  readings  in  that  markets  exert  a  very  strong  influence  on  policy   making.   I   would   however   argue   that   this   influence   is   kept   in   balance   by   all   players  involved  in  policy  making  and  that  the  market  does  thus  not  imprison   nor  control  today’s  society.  At  least,  no  more  than  it  is  allowed  to  by  society.     Normally  the  actions  of  a  democratically  elected  government  reflect  what  “we,   the  people”  want.  So  if  a  substantial  influence  of  environmentalists,  as  Keleman   and   Vogel   iii   describe,   is   able   to   push   the   political   agenda   so   much,   that   EU   member  states  become  very  vocal  supporters  of  environmental  policy,  I  wonder   in  how  far  the  market  was  part  of  this  change?  Granted,  the  government  will  not   be   able   to   push   the   most   extreme   environmental   regulations   that   will   reduce  
  • 2. firm’s   profit,   but   neither   will   it   be   able   to   defend   no   regulations   at   all   to   its   voters.  Is  this  not  merely  finding  a  balance  between  all  players  of  society?       As  J.  Nye  concludes  in  his  talk  iv,  I  would  also  like  to  think  the  interaction  with  the   market  is  not  necessarily  “zero  sum”,  your  loss  is  my  gain.  I  would  rather  like  to   think  we  are  playing  a  –  difficult  –  game  of  “positive  sum”:  my  gain  (for  example,   the  gain  of  society  from  carbon  emissions  reductions:  increase  in  health,  less  de-­‐ forestation,  reduced  costs  on  health  care,…  )  does  not  have  to  be  your  loss,  but   can   also   be   your   gain   (firms:   healthier   workers,   increased   sales   because   of   a   better  image  of  the  firm,…).  At  least  that’s  what  I’d  like  to  think.                                                                                                                     i  Lindblom,  Charles  (1982).  The  Market  as  Prison.  Journal  of  Politics,  44:  323-­‐336.   ii  TED  (2010).  Joseph  Nye  on  global  power  shifts.  Internet.   http://www.ted.com/talks/joseph_nye_on_global_power_shifts.html.  24.10.2010   iii  Kelemen,  R.  Daniel,  Vogel,  David  (2010).  Trading  Places:  The  Role  of   the  United  States  and  the  European  Union  in  International   Environmental  Politics.  Comparative  Political  Studies,  43(4):  427-­‐456.