A linkage between education and the economy is generally accepted, with the latter seen as of primary significance and education expected to reflect the general activity of the economy. Thus in western capitalist societies the 'needs' of the economy for differentiated labour are held to account for the hierarchically differentiated product of schooling. Similarly, when the economy experiences major changes, as from growth to slowdown in recent years, then major implications for schooling can be expected. A general point of concern in the study on which this paper reports is with the nature of that relationship. As commonly depicted, it is essentially an impersonal and mechanistic one, with the implication that individuals and groups exercise little influence. In contrast, the thrust of the argument explored here is that they are at the heart of the relationship, but differentially significant according to power exercised and the senses of justice upheld by more powerful individuals and groups. This general thesis derives from assumptions that people, as individuals and in groups, are very much concerned with achieving such goals or interests as personal and group development and autonomy, together with wealth, status, power and other forms of aggrandisement. Further, concern with such goals is held to underlie economic, political and other forms of social activity. Thus, it has been in the relatively ruleless or undoctrinaire 'capitalist' societies, where economic goals or interests are given primacy, and in a period when resources were judged to be virtually unlimited and 'markets' far from satiated, that productive activity has been most vigorously pursued, with steadily increasing production or an expanding 'economic cake' being associated with relatively widespread 'trickle down' of benefits. Because the consequences relate closely to the distribution of power and associated senses of justice [1], however, one should not expect an even distribution of the effects of economic slowdown. Rather, a more realistic expectation is that the more powerful will seek to maintain the rates of improvement in the circumstances to which they have become accustomed, and possibly continue to improve them, even if to do so is at the expense of less powerful individuals and
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