A political economy strategy for promoting wellbeing and environmental survival

The purpose of this paper is to consider how political economy can be applied to address the interconnected problems of the global maldistribution of wealth and of climate change at a time of weak economic growth. These problems are addressed here as moral issues for which technical solutions are inadequate. Yet a synergy between ethics and efficiency can be achieved. Given the evident inability of market forces to address social and environmental problems, the state needs to take leadership in designing and implementing solutions. This requires democratic support and, crucially given power structures, the support of vested interests. The policy stance therefore needs to appeal both to considerations of social and environmental justice and to self-interest. We pursue this line of enquiry with the aid of analyses ranging from Smith to Keynes and beyond about the nature of capitalism and of human motivation.