Politicians are often blamed when the economy is shrinking. If a politician stated, "We are going...

Politicians are often blamed when the economy is shrinking. If a politician stated, "We are going to keep trying things until we find something that works," is that a good idea or strategy for the economy? for the politician? Why or why not?

Expert Solution

Politician is a person who is actively worked in politics. The political ideologies played an important role in economic decision. An idle economist should be ignoring the political basis. Economists studies the pros and cons of political though and government intervention. Economic policies without the government intervention will improve the quality in the economy. On the other hand the equality can be promoted through the intervention of government and political thoughts In general view, the politician can use the economic thoughts in their political ideas. Some of the economic aspects are formed through the full backup of political ideologies like implementation of tax system by the authority need support from the economic side.
One of the most interesting cases among this is who run economy? If also create a conflict between fiscal policy and monetary policy. Central bank should intervene and implement monetary policy due to the weakness of fiscal policy. On the other hand, the fall down nature of monetary measures can be maintained through the efficient intervention of fiscal authority. There are several politicians who worked for their party only to gain prestige and name in the society. They will give several offers and promises to the people during crisis in the economy. This social interaction with the people, create a trauma among the public. This makes confusion among the people. But the political aspect focuses only for the maintenance for the name of the specific political party, not for the welfare of the people. This makes the economy to a deep fall from its actual level. People’s confidence towards these parties also reduced.

Rahul Sunny answered 7 months ago

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