Research paper on The Uneasy Relationship between Politics and Economics

It is important to note that politics is the activity of state bodies, political parties, social movements, organizations and their leaders in the field of relations between large social groups, nations and states, aimed at mobilizing their efforts to consolidate political power or gain it using specific methods. Of course, the purpose of politics is not only to be an instrument of implementation of various social and class interests, but it also performs the function of regulation and the establishment of the order of social processes and relationships, the material conditions of social production, a collaborative effort.

Describing economics in the frames of our discussion, we see that economics is a historically specific set of socio-productive relations. The defining element of the economic relations is the means of production and depending on their position and attitude of people in the production process of mutual exchange activities, the relations of distribution. The totality of different industries is also considered to be a component of economics. Hence, the economics is a single national economic complex comprising all the elements of social production, distribution, and exchange. Otherwise, we can say that the economics and economic activity are the spheres of public and individual material self-sufficiency which influence on human existence in this life.

The main institution of the political system is the state, where exactly sovereignty is its distinctive feature. According to Fischer (2003), the sovereignty of the state is reflected in the fact that it has the right to represent the whole society officially, to legislate laws and regulations mandatory implemented by all members of society, and finally, to administer justice. It is true that economic development of a country is measured by indicators such as gross per capita income, income distribution between different groups, then that serves as a criterion of the political maturity of the society.

Of course, people do not live in isolation because the essence of human nature is to live in community, where they depend on each other being engaged in economic activities. There are three main factors of production: labor, capital and natural resources. The position of people in society and their relationship to a large extent are determined by their relationship to these various factors of production. For instance, those who have capital have the other social status than those who sell their labor power. At all times, much of the political and economic discussions and analyzes were focused on just one issue: how a possession and use of the means of production divide people into different social classes.

The relationship of politics and economics is defined and shaped by class and social interests of the general relationships of people. All political problems are associated with the impact of state power of different social strata and groups, political and social organizations and movements, political parties, with the competition between them Ēď everything of this will ultimately be reduced to the relationship of economic interests.

Understanding of economic relationships makes it possible to change the conditions of our lives, to achieve improvement. People’s daily lives (whether they like it or not), their own situation and their position in life, depend on wages and prices, rents and taxes, profits and investment, unemployment and inflation, while all these phenomena are called macroeconomics. If people have no influence on these events, and do not understand them, than one or another little group of Ēėexperts-economists’ would be always able to make decisions by their own will. And, of course, these economists represent the interests of different groups, social groups, classes, and are usually disagree with each other. As a result, all the processes and phenomena occurring in the macroeconomy, decisions and actions that affect them, have direct political consequences. That is why politicians and political movements are interested to give an economic explanation of the own policy and to equip it with ďscientificĒĚ reasoning.

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