If there two things that cannot separate, it is politics and economics. The theory has it that economics is non-political. A real economist should only be worried about improving a country’s economies and not paying attention to any political prejudice. The truth is that there are firm connections between politics and economies, as one of the major battlegrounds for politics is the economy. Various economic issues are fundamentally political why because they loan themselves to diverse opinions. Visit The Rum Rebellion posts website has more to comment on this subject.
Is microeconomics free of politics?
It is a question that raises eyebrows, but we can argue that there is economics that is free of politics. Elementary demand and supply are not burdened with political ideologies. There is a question of who should govern the main industries in cases like privatization, whether it is the government or private initiatives.
Political philosophy affecting economic thought
Most of the economy’s matters are seen through political eyes. For instance, people suspect that the government has a hand in the economics of a country. Thus, they prefer policies that intend to diminish government intervention in the economy. Politicians may use economics to support their political views. It is also important to note that not all kinds of political stability are the same as development-friendly. But it all depends on the extent to which the stability translates to good governance.
Agenda
Some people are against the issue of putting economic growth first maximization of economic wellbeing. Others may say that it is not to major on GDP but rather to maximize the environment, happiness and ensure satisfaction with everything we have. Thus, a politician whose background is environmental will tend to disagree with the entire idea behind macro-economics. It is probably not just about the finest way of economic growth promotion. Rather if we are aiming for economic progress in the first place. That, too, is a political issue.
Economics requires political intervention
Those who have studied economics are aware of a Pigovian whereby people pay the private cost and the full social cost on all goods, which means that even polluters should be taxed. For this law to be executed there is a need for government intervention. Read more about this on The Rum Rebellion posts.
Conclusion
In conclusion, this is the current situation in the country. In other words, there is a great connection between economics and politics. For the economy of a country to be great, the political ground has to be good. The government impacts innovation and consumer- investors’ protection mainly because the government is known to be a double-edged sword as it affects the cost of operating business. What is strange is that the government rules sometimes do not convince the multitudes why there is a need for such sectors.
