The relationship between economics and politics | Economics Help
successor to Jean-Baptiste Say in the political economy chair at the. Conservatoire des rian of economic thought, like any other social scientist, cannot pretend. In some respects economic science is now at the height of its prosperity. . respect later political economists are at a disadvantage. The new political economy. A multidisciplinary field, political science draws from some other social sciences, including sociology, economics, psychology, and anthropology.
Historians have employed political economy to explore the ways in the past that persons and groups with common economic interests have used politics to effect changes beneficial to their interests. In the s and s, legal realists e.
The relationship between economics and politics
Robert Hale and intellectuals e. John Commons engaged themes related to political economy. In the second half of the 20th century, lawyers associated with the Chicago School incorporated certain intellectual traditions from economics. However, since the crisis in legal scholars especially related to international law, have turned to more explicitly engage with the debates, methodology and various themes within political economy texts.
Many sociologists start from a perspective of production-determining relation from Karl Marx. Marx's theories on the subject of political economy are contained in his book Das Kapital. Anthropology studies political economy by investigating regimes of political and economic value that condition tacit aspects of sociocultural practices e.
Analyses of structural features of transnational processes focus on the interactions between the world capitalist system and local cultures. Archaeology attempts to reconstruct past political economies by examining the material evidence for administrative strategies to control and mobilize resources.
Psychology is the fulcrum on which political economy exerts its force in studying decision making not only in pricesbut as the field of study whose assumptions model political economy. History documents change, often using it to argue political economy; some historical works take political economy as the narrative's frame.
Contribution of Political Science to Economics
Ecology deals with political economy because human activity has the greatest effect upon the environment, its central concern being the environment's suitability for human activity.
The ecological effects of economic activity spur research upon changing market economy incentives. Additionally and more recently, ecological theory has been used to examine economic systems as similar systems of interacting species e. In the US, the Paul Ryan budget proposals were welcomed by many Republicans because they promised tax cuts for better off, cutting welfare benefits and balancing the budget.
Many economists may be generally supportive of the EU and European co-operation, but the evidence from the Euro single currency is that it caused many economic problems of low growth, deflation and trade imbalances. Economics needs political support If you study economics, you can make quite a convincing case for a Pigovian tax — a tax which makes people pay the full social cost of the good, and not just the private cost.
This principle of making the polluter pay provides a case for Carbon Taxcongestion charges, alcohol tax, and tobacco tax e. However, whether these policies get implemented depends on whether there is political support for them. For example, a congestion charge was proposed for Manchester, but it was very heavily defeated in a referendum. A new tax is rarely popular.
As an economist, I would like to see more congestion charging because it makes economic sense. The political appeal of austerity Another interesting example is the political appeal of austerity.
After the credit crunch, there was a strong economic case for expansionary fiscal policy to fill in the gap of aggregate demand.
Contribution of Political Science to Economics
Politically, it can be hard to push a policy which results in more government debt. Another interesting case is the relationship between fiscal policy set by government and monetary policy largely set by independent Central Banks In the UK and US and Europe fiscal policy has been relatively tight, given the state of the economy.
As a consequence, it has fallen to Central Banks to pursue an expansionary monetary policy to offset the deficiencies of fiscal policy. If politicians pursue tight fiscal policy, Central Bankers have to adapt Monetary policy.
There are some areas of economics we could argue are free of politics — basic supply and demand and concepts like the theory of the firm are not laden with political ideology. If you take an issue like privatisation — there is a clear political issue.Relationship of Political Science with social science
Who should control key industries — private enterprise or the government? Agenda Another issue with economics is that some criticise the subject for prioritising economic growth and maximisation of monetary welfare.
Some argue that the aim of society is not to maximise GDP — but to maximise happiness, the environment and being satisfied with what we have. Therefore, a politician from an environmental background may disagree with the whole premise behind macro-economics.