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Limitations of Economic Theory

Today, the development of the contemporary culture raises the problem of the impact of consumerism, which becomes the overwhelming trend in the development of the contemporary society. In such a situation, the economic impact on the society becomes obvious. However, the economic theory cannot always be applied to cultural identity products because they are quite different from conventional products. In this regard, the role of media can hardly be underestimated because media contribute to the formation of cultural issues and values. In this regard, the cultural identity products are quite different from conventional products and the economic theory can hardly be applied to these products.

First of all, it is important to place emphasis on the fact that the economic theory is profit-driven, whereas cultural identity products do not always bring profits. In spite of the commercialization of the contemporary art and culture, they still are driven by moral and aesthetical considerations above all, whereas profit is secondary. Anyway, culture keeps progressing, in spite of the socioeconomic situation, whereas economy focuses on the steady economic growth, whereas economic decline has a negative impact on the socioeconomic development. The profit is the central concept of the economic theory, whereas the cultural identity products are not concerned with profit. Instead, they are more concerned with cultural values and with formation of views and aesthetic preferences of people.

At the same time, economy is closely intertwined with culture because, as a rule, the economic growth stimulates the cultural raise up but still the culture can develop, in spite of economic decline, whereas the economic crisis undermines the economic development. In this regard, it is worth mentioning the fact that the economic theory develops the idea of the steady economic development and progress as the primary concern of the society. In this regard, cultural identity products are also driven by the strife for progress. In such a way, the cultural identity products are different from conventional products but still they have their own lifecycle.

On the other hand, there are universal humanistic values, which persist throughout the time and they do not have the clear lifecycle and this concept cannot be applied to the cultural identity products. In fact, the cultural identity products can exist in different cultures and some of them are timeless, whereas the concept of timelessness cannot be applied to any product viewed in the context of the economic theory.

Furthermore, the economic theory is grounded on the offer-demand correlations, whereas cultural identity product is not correlated to offer-demand balance. In contrast, the cultural identity products are capable to generate offer and demand. As a result, the cultural identity product is, to a significant, self-sufficient and, therefore, capable to stimulate demand and offer does not necessarily meet demand. The latter is particularly important because, in terms of economic theory, the balance between offer and demand is one of the essential conditions of the economic stability, whereas in case of cultural identity product, the offer should not necessarily match the demand. In stark contrast, the offer may target at the limited cultural group, whereas a number of subcultures can also emerge creating their own cultural identity products. As a result, the emergence of the cultural identity products is not dependent on the correlation of offer-demand and the balance of offer and demand is not essential for such products.

Social implications of private ownership of media are very significant. In fact, the cultural identity products cannot exist outside the society. At the same time, media are the means through which cultural identity products are promoted and delivered to the mass audience. In this regard, the private ownership of media affects consistently the development of the cultural identity products because private ownerships provides larger opportunities for presentation of diverse views and cultural perspectives, because private owners can present their own values and ideas through their media.

Private ownership contributes to the formation of diverse views on the development of messages and content of the media. On the other hand, the diversity of private media stimulates the cultural diversity. Nevertheless, it is due to this internal controversy, private owned media keep progressing and stimulate the emergence of new cultural identity products. At the same time, the private ownership of media contributes to the commercialization of mass media and culture that raises the problem of devaluation of fundamental social and cultural values of the society.

Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the economic theory cannot be applied to the cultural identity products because they are different from conventional products, which are subjects to the study in terms of the economic theory.

Works Cited:

Hart, J.L. “Organizational Communication in an Age of Globalization: Issues, Reflections. Practices”. Business Communication Quarterly, 67, 2004, 43-52.
Robbins, R. Global Problems and the Culture of Capitalism. New York: Allyn and Bacon, 1999.
Russell, G. Introduction to Philosophy. New York: Random House, 2003.