Power Theory of Economics.

• Author: Carroll, Michael C.

Yasuma Takata (1883-1971) was a scholar whose influence was felt in the fields of both sociology and economics. His work in economics was founded on the desire to enrich economic science with key elements from his sociology. He theorized that neoclassical theory generally ignored social influences and could therefore be improved by integrating sociological variables into the economic analysis. Specifically, Takata believed that economic theory did not sufficiently address the concept of "social power". As a result, neoclassical economics lacked the ability to explain many social phenomena.

Power Theory of Economics is divided into two main sections. The series editor, Michio Morishima,(1) pieces together selections from two of Takata's most significant works. Section one, "Analysis of Power" is taken from the Theory of Power (1940), one of Takata's most influential sociological texts. Section two, "Power Theory of Economics" originally appeared as the opening essay in Essays in the Power Theory of Economics (1941). Section two also contains a short excerpt from a lecture entitled "Price, Wages and Unemployment" that was first delivered in 1946.

Part one, "Analysis of Power," provides the fundamental inquiry into the nature of social power. He does not define power in the more traditional sense of being the "ability to do or to act," but rather sees power as "the potential to be obeyed by others" [p. 3]. This is very different from other social conceptions of power. The limited literature which attempts to incorporate power into economic analysis, tends to characterize it as the control over the labor of others. In essence power becomes a socialized product of production. Takata on the other hand, is more concerned with the power of the individual than the power relations of production. He believes the aggregate definitions overlook "the fact that power is embodied in the body that wields it: that is, it is somebody's power" [p. 5]. Individual power benefits the one who controls it and is therefore reflected in the society's cultural hierarchy. If certain positions of respect or honor are power related, then the desire for power becomes a motivational force. Takata breaks this demand for power into three fundamental desires: "the need to acquire power, to exercise and to display it" [p. 81]. Takata then traces the behavioral results of these power desires within personal, political and bureaucratic relationships. This section finishes with...