How the different concept and tenets of politics and economics interact and interweave into each other both nationally and internationally is one of the paramount questions for politicians and economists to ponder over. While the two are acknowledged to be inseparable, evidence is clear from both sides of the Atlantic that politics eventually yields more leverage over economics.
In the U.S the world witnessed how President Obama bailed out banking institutions to the tune of billions of dollars after politicians in Congress approved the decision. Over on the other side in Europe, Greece’s political dysfunction saw its economy register the worst of performances in decades. These two events are a clear indicator that the economy cannot be left to sustain itself through market forces, but will always at some point call out to politics for a favor.
Whenever a country’s economy would be judged as lousy and dissatisfactory to the electorate, it would normally trigger the emergence of a political force that is oriented in a different way as compared to the incumbent government. This trend normally takes place because it is firmly settled that a country’s economy will blossom or shrink depending on the political makeup of the government.
A combination of good economics and ingenious politics function as the fertile grounds for a thriving economy while the converse holds that bad economics go hand in hand with dysfunctional politics.