How are economic policies impacted by politics? Does politics make a positive or a negative contribution to economic policy?© BrainMass Inc. brainmass.com December 15, 2020, 4:32 pm ad1c9bdddf
Economics and politics are interrelated with each other. Most political decisions have economic consequences while some changes in economic policy have political results.
There is no way to avoid the free market system and the government actions in the market. An example of this is when a government fixes the price of an item; the market will adjust around that fixed price. Sometimes free market results are not acceptable such as 'selling human beings' or 'killing competitors' to remove them. This is actually lousy politics rather than economic analysis. There may be public policies such as unemployment, welfare, or tax system which try to improve the distribution of goods and services but economic analysis has figured out that it is the decision of the politician which one to pursue. There are many instances that changes in economic variables influence politics and it is the same vice versa. Each of these policies has economic implications and if ...
The solution explains how economic policies are impacted by politics and if politics makes a positive and negative contribution to economic policy. References included.