Economy and State: A Sociological Perspective

Book review
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Control of private property in capitalist economies by the state remains unclear mainly because perceived absolute control of the means of production by capitalists. Unlike socialist economies, private owners control much of their means of production, as well as being entitled to their profits. One question that usually arises in these markets is about the extent to which the government can control private ownership of the means of production. “Economy and State: A Sociological Perspective” by Nina Bandelj and Elizabeth Sowers explores through dualism economic theory, significance of governments control in private ownership.
Thesis statement: The authors assert that much like in a socialist economy, private ownership should be an entity of economy left in the regulation of state

Summary of the book
Nina Bandelj and Elizabeth Sowers’ “Economy and State: A Sociological Perspective” explores the dynamics of intersection between economic sociology and social change in globalization. In order to advance new explanations of their theories in social economics, they focus on the bases of economy at the micro and macro levels through a quantitative, qualitative method or both. This book largely focuses on the factors that determine economic development. The key issues are the control of the state in economic development and other issues pertaining sociological perspective of economic development.
In a modern world where there is a large population of poor people against a small number of extremely rich individuals, this book will help one understand the dynamics of state and capitalism; the control that the state has on capitalist economies. Nina introduces the theory and concept of dualism in capitalist economies. In the book, we are also introduced in the factors that determine how much control the government should have on private property even though socialism is out of the whole picture.
Critique
In a classic perspective of state and economy, there is an assumption that the state and the economy are two conceptually different entities. The state is preoccupied with governance affairs while the latter is preoccupied with the management of resources for maximization of profits in private sectors. The two extremes are in conflict. If we perceive the state and economy as different entities, then, involvement of the state in the economy would be construed as an intervention in the private sphere. The question here is to what extent should the state control the economy? The theory is therefore focused on the quantity of state control in economy.
In her book, “Economy and State” Nina Bandelj explains why it is necessary for a state to control the economy. To understand her perspective, we look at the differences in capitalism and socialism. Whereas capitalism is an exchange in ownership of assets socialism in contrast, attributes ownership to a central authority. So in socialism, there is no market exchange rather redistribution by the central authority. The abolition of private ownership thus rules out market exchange in favor of alternative ways to organize the economic productions. Clearly, defining ownership affects the economic system radically with capitalism in favor of private ownership and socialism for collective ownership.
Therefore, the role of the state in a capitalist market as Nina Badelj argues is not only to define property rights but should also serve to protect them. In her argument, she endorses capitalism through a free market setup. Capitalism then results into a dualism concept of economic development. Through others, we understand her sentiments on dualism where she claims that the market is the most fair and efficient arbitrator of resources. James D also argues that a government can promote social cooperation and enhance its citizens’ economic welfare primarily by providing people with protection for their lives, liberties (Gwartney, 2010).
A major flaw with the dualism economic approach however is the stratification of resource ownership. Existence of highly educated people with a majority of illiterate poor people develops a dependency in the capitalist class for the mass of illiterate. That is, there is an inherent conflict in capitalism between the bourgeoisie and the workers which eventually will lead to a collapse. As Claar, & Klay explain, governments are expected to avoid trying to reduce income disparities between the rich and poor, because it is assumed that the primary social value to be defended is freedom of individual choice, not equality (Claar & Klay 2007). They also show the inevitability of having the poor as the Bible says that “You will always have the poor among you” (Claar & Klay 2007).
This weakness causes a deficiency in the way it tackles the whole issue of economy development in that; it fails to acknowledge the positions those dual economies societies are poised in. a balance between the two sides is potentially not easy b...