Thursday 26 January 2012

@econ101b Principles of Macroeconomics Assignment 1 Q 1
This depends on the definition of 'political spectrum'.
Politics is the way by which citizens voice their opinions about what happens in the world. To entirely remove economics from political influence is neither possible nor desirable. Politics and economics are intrinsically linked - there is a political system within which the economy functions, and this should be remembered when economic decisions concerning welfare are made. To forget about political influences altogether would be to ignore a key influence on behaviour.

However, to interpret the question differently, political bias should not undermine economic decisions being made and lead to sub-optimal welfare. However this is indeed very difficult to prevent. It is very difficult to identify with any certainty the motivations behind an individual's advocation of a particular economic policy. An individual could conceal the way he feels about a particular issue, pretend that a particular course of action would be beneficial for the economy when in fact the motivation for this is personal political gain. The complication that the political system has over economics is not a new issue, nor an easy one to solve.

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