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?

Solutions

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 3 months ago

Next > < Previous

Related Solutions

Politicians often argue that a country's standard of living is reduced when it allows imports into...

Politicians often argue that a country's standard of living is reduced when it allows imports into the country. Offer an economically sound counter-argument.

. It is often stated that "we live in an information age," yet the adverse selection...

. It is often stated that "we live in an information age," yet the adverse selection problem still exists. Why? 4. Which government regulatory agency was created in great part, to help overcome the adverse selection problem in equity markets? 5. High deductible are used in which financial market to help address the moral hazard problem?

We often hear politicians discussing taxing firms that earn “excessive” profits. Other times, such as in...

We often hear politicians discussing taxing firms that earn “excessive” profits. Other times, such as in the wake of the 2008 financial crisis, we observe firms requesting “bailouts” from the government to compensate for losses. In the context of this section’s material on the role of economic profits and loss, discuss the implications of policyaimed at reducing profits or mitigating losses.

When politicians make claims that we need to spend a large amount of money to achieve...

When politicians make claims that we need to spend a large amount of money to achieve a goal, the claim is often made without legitimate evidence to support a claim that a given program will have a particular result. Let's say that a politician wants to implement a nation-wide education program. The politician gave four examples of schools that used the program: scores at the schools increased 0.5, 1, 2, and 2.5 points respectively (the nation-wide average of the scores...

Applying what you have learned... When politicians make claims that we need to spend a large...

Applying what you have learned... When politicians make claims that we need to spend a large amount of money to achieve a goal, the claim is often made without legitimate evidence to support a claim that a given program will have a particular result. Let's say that a politician wants to implement a nation-wide education program. The politician gave four examples of schools that used the program: scores at the schools increased 0.5, 1, 2, and 2.5 points respectively (the...

What is the effect on our economy of the price control? Often, before the election, we...

What is the effect on our economy of the price control? Often, before the election, we can hear everywhere “THE MINIMUM WAGE MUST BE INCREASED”. After watching this video what is your opinion on minimum wage law? Is price gouging moral? Should it be illegal? Share your thoughts?

It has been stated that ‘Time has value.’ What does this mean when we are evaluating...

It has been stated that ‘Time has value.’ What does this mean when we are evaluating a series of cash flows?

11) When we solved problems dealing with objects in free-fall, we often exploited a symmetry that...

11) When we solved problems dealing with objects in free-fall, we often exploited a symmetry that led to the conclusion that the time it takes an object to go from a starting height to a maximum height (where the vertical (y-direction) velocity is zero) is the same as the time that it takes for the object to fall from that maximum height back to the starting height. If we introduce air resistance as a force similar to a friction force,...

Cracker companies look for ways to reduce how often we find broken crackers when we buy...

Cracker companies look for ways to reduce how often we find broken crackers when we buy a package. One idea is to microwave the crackers for 30 seconds right after baking them. A researcher randomly assigned 65 newly baked crackers to be microwaved, and another 65 newly baked crackers to a control group that is not microwaved. Fourteen days after baking, 3 of the microwaved crackers and 57 of the "control" crackers showed preliminary signs of breaking. Is this enough...

When we conducted normative analyses of economic allocations through markets in our models, we often compared...

When we conducted normative analyses of economic allocations through markets in our models, we often compared their welfare outcomes against a benchmark of a Pareto efficient planner. Let's take the concept of our Modified Golden Rule for example. Which of these statements are most correct? There is a unique Pareto efficient planning problem. Hence it is a useful benchmark. The notion of Pareto efficiency is not free from subjective value judgments. There is an infinite set of possible Pareto planners...

Subjects