Politics importance in economy

Politics importance in economy

Politics importance in economy

The perfect balance between politics and economy is difficult to reach and even more difficult to maintain. The economic evolution depends mainly of the political decisions made by governments and the thin line between the economy and the politics has never been as untouchable as it is in the 21th century.

The history shows us how the political decisions become more important, influencing the economy and the society at a larger scale. Nowadays even apparently insignificant political actions influence the economy evolution and if we take into consideration the major countries, a wrong decision could affect the global economy.

A good example of political events that affect the economy of the country is the elections. Every few years the democratic nations hold elections for the people to choose their rulers whether they are the parliament, the prime minister or the president of the country.

The election campaigns are mainly based on socio-economic programs, every party having its own plans for the country development for the next few years. Usually the decision to vote for one candidate or party is decided upon his economic views and the economic plans that he or his party wants to implement in the next period of time.

It’s a known fact that the major financial investors prefer only the democratic countries with a stable political environment and a predictable economic evolution. This is why the countries ruled by dictators or by military power will have poor economies and thus a low quality of life.

The wars have the worst effects on economy on both national and international level. The war in Iraq is the best proof for that statement as many economists say that the current dramatically economic situation that United States faces today is due to the war in Iraq. The war practically consumed the financial resources of the country making it vulnerable to a potential financial and economic crisis.

As a conclusion it’s safe to say that politics and economy depend of each other more than ever so any analysis on any of the two should take into consideration the other.

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