Politics and the Economy?

Question

What are some positive and negative effects that politics has on the economy and what are some positive and negative effects that the economy has on politics??

Answer 1

... tax cuts or increases can pull or put more money in the economy...

wars waged by governments can put tons of money into the economy...

if economic numbers are bad... many people blame government, even if it's not their fault.... and likewise with good numbers... and praise...

government can also control key interest rates, which can lead to more or less borrowing across the nation...

Answer 2

Although the government can influence the economy through taxation or deregulation of certain industries, government creates a postive or negative influence most strongly by creating or driving away consumer confidence.

If enough people believe that things are okay, then the economy behaves that way. If enough people lose confidence, then a run on currency or stocks can cripple an economy.

Kind of like voodoo.

Answer 3

Republicans cut taxes, which stimulates the economy, puts more money in the pockets of working people, and puts people back to work.

(However, the first president to cut taxes was JFK, a democrat. His own democrat party hates him to this day, for cutting taxes. He proved that it works.)

Answer 4

the economy is intimately a part of politics ... and vice-versa .. its a fiat currency controlled by a quasi-legal private organization put in place in 1913 under questionable circumstances.