Politics and Economics have always been closely related. Modern communications technologies have made this relationship even closer. Power is at the core of politics and economics is often used as a tool to increase political power. These are some ways in which politics and economics are closely intertwined.
The Role of Economics in Elections
Economics plays a huge role in elections. The people trusted to run your country are often chosen based on the economic policies they will introduce if they get into power. If the policies of a particular politician are accepted by enough of the voters, they are given the power to try and make the changes they believe will benefit their country and voters.
Finance Departments and Economic Advisors
Government members in most countries are deeply involved in the economic development of their country. The decisions they make can influence economic growth and stability. Most ministers have a team of economists who brief them on the best decisions to make in the interest of their country.
International Trade and Learning Forex Trading
The amount of trade that takes place between two nations depends heavily on the political relationship between the leaders of the two countries in question. If there is a harmonious and friendly relationship at the political level, this makes it easier to carry out healthy economic activities between each country. It is similar to how regular businesses make a sale. The fluctuations in currencies is often an indicator of this with many people wanting to learn forex trading to take advantage of these changes in currency values.
If two countries are hostile towards each other, trade between both countries can be affected. In more serious instances, certain countries can inflict financial and economic penalties on a hostile country that can have serious consequences for the lives of its inhabitants. If matters get even worse countries go to war with each other and inflict even more serious economic sanctions for many years to come.
The National Budget – A Political and Economic Event
Cielo Gonzalez Villa says that when a budget takes place it’s a major political event that gets a lot of media coverage. This important activity is undertaken by politicians who set out a financial plan for their country. Some decisions are popular, while many more are not. Every budget has the potential to destroy a government or increase its popularity. It’s also a huge economic event because the contents of a government’s budget affects all of our lives. It affects business owner’s financial decisions, our cost of living and many other aspects of our lives. This is one of the most obvious ways in which politics and economics are intertwined.
Those who control the finances of a country, control the country. Politics and economics are intertwined on many different levels. Governments get elected based on their economic policies, governments get thrown out of office for their policies and the relationships between countries often depends on the economic policies agreed between their leaders. As the world gets smaller and communications systems become more advanced, the relationship between politics and economics grows even closer.