Political Sociology: State and Economy

Paradox that deregulation of the economy leads to high levels of social inequality and therefore leads to a strong state.Neoliberalism:Neoliberals reject inherent weakness of capitalism – blaming: · Keynesian economic management · Increased welfare spending · Unions corporatism

Freidrich Hayek 1899-1992 The Road to Serfdom (1943)- Argues against government intervention in the economyJM Keynes 1883-1946 The General Theory of Employment, Interest and Money (1936) - Argues in favour of government spending to stimulate the economy