Economics and Politics

Economics and politics are intertwined. Because economics and politics are intertwined, the first economists named the discipline political economy. The relationship between economics and politics partly reflects the importance of economic conditions to political conditions. The well-being of an economy can affect the rise and fall of politicians and governments, even the entire social system.

But here too the influence is on both sides. Politics also affects the economy and economics. The economy is a field of competing and often conflicting interests. Determining whose interests prevail and how those conflicts are managed is a deeply political process. Neoclassical economists claim that anonymous market forces determine all outcomes, but what they call the market is itself a social institution in which the interests of some are maximized at the expense of others. Different economic actors use their political influence and power to further their respective economic interests. The extent to which groups of people bear economic consequences also depends on political factors, such as whether they believe that those consequences are natural or inevitable, and whether they feel they have any power.

Finally the social sciences that aim to explain and explain all this scrabbling, intrusive behavior to economics. He has his own political assumptions and biases. So modern economics is no different, it is still a deeply political enterprise.