How is economics and politics related?

Question

Can you explain it from your understanding please?

Answer 1

Politicians pass economic laws. The structure of any economy revolves around the economic laws of that country. So politics and economics are often intertwined.

Answer 2

Both nationally and internationally.
internationally ,you can dominate international trade,get monopoly over the world markets and collect your interests easily by forcing decisions on other countries , the best example is the US economy, you would must have seen the Us economic santions which directly affect alomost every country and all try best to avoid confrontaion because of this threat. they also use international sanctions with the coordination of UN. this is a practical internationa economic boycot.
nationally if you are strong economy, then it mean the IMF and WB dont need to design your policies and set your prices, this mean you are an independent economy, the stable economies can fight black mailings, the black mailing that cracked the USSR, The US did it, ussr leaders surrenders because they were knocked out at the economic front, they had the largest war machine ,capable of defeating US and europe and even the whole NATO but they had no money , to pay as salaries, for maintenance and so they failed.
nationa stable economy lead to employment which decrease crime rates and these are the guide lines on which you can now build your own theory.

Answer 3

The full employment act dating back to the 1940's
assigned the government the role of "stabilization", thus the government is responsible for full employment with price level stability to render economic growth. How the government handles Fiscal policy and to some extent their influence on monetary policy impacts just about every aspect of the economy. Economists advise politicians on how the economy functions and what policies will alter the economy for the good or the bad. Much of what goes on in the world can not be truly predicted and controlled, thus we are constantly setting up new models and praying for success.

Answer 4

Government rules and policies effect the success of the economy in generating wealth as well as who the winners and losers are in a country. Most of the disagreements between political factions is about which rules and policies get enacted into law, and how the tax burden is shared. Economic consideration are also at the root of most of the conflict between nations, and play some part in most wars.

Answer 5

Politics can have a profound effect on economics. The Bush tax cuts are a classic example: by making it more profitable to invest, these have fostered growth and employment, decreased unemployment to the lowest levels ever, and actually increased total tax collections above what they would have been without the cuts.