Economic and political system

Posted by basshopper on January 18th, 2020

Economic and political systems must always be analysed together. And in reality, society is also involved in economics and politics. The problem is Most economists talk about the economy without looking at the political dimension. Sometimes mixed with the economic system and economic policy Like lately This is an interview with an economist talking about capitalist economy. Populist economy And the socialist economy Populism is not an economic system But populism is a policy that is determined by political ideology and the desire to gain popularity.

The economic system can be broadly divided into a system known as freedom, using market forces. And the socialist system that is planned centrally, without giving any weight to the market mechanisms Both of these systems must be related to the political system as a democracy or dictatorship. At the same time, the capitalist economy may tear into the welfare state policy, that is, the market mechanism is still used, but there are special policies to protect the majority of people in order to be stable in the economic life with various welfare. In this respect, it must be regarded as an economic policy, not an economic system. Para encontrar informações adicionais on luciano mestrich motta, você tem para visitar nossa site.

Similarly, populism is an economic policy, not an economic system. Looking at two dimensions, economic and political, with a society attached to it, it can be said broadly that capitalist economy uses market mechanisms to determine production. By using supply and demand principles There is a demand for the product, the production of that product is similar. The price is determined by the market mechanism. And this is the nature of the textbook called the complete competition The price is fair But in reality there is a monopoly at some level, so complete competition is very rare. And even in the matter of demand, supply is not always true The product was first produced. Meaning that there is supply without demand But by using methods of advertising for people to buy, but in general, this free capitalist economy has something called an invisible hand, allowing everything to be naturally free.

Free economic system Or this free capitalism Usually occurs under an open political system Also known as democracy. Therefore, a free economic system Or free capitalism, which is mostly paired with the democratic regime Which the state will not get involved in the work of the free economy But in reality, sometimes the free economy cannot proceed smoothly because the market mechanism is ineffective. Especially when the economic downturn caused the collapse of companies, unemployment. The dynamics of the economy and business will go down, which is known as the economic downturn. Therefore has a policy guideline that The state must stimulate the economy by using monetary, fiscal and monetary policies, including interest. Finance is a government investment.

But even in this democratic and liberal democratic economy, social problems cannot be solved in certain areas, such as unemployment and poor people everywhere. Which may lead to social problems Crimes and others Therefore may have welfare policies to help these poor people Initially, the said welfare system is considered a measure of the socialist system. When used in the United States, there was resistance. And later became an important policy of the American economy to help the unemployed, the poor, the elderly, who have no income etc. When this happens, then you can see that the capitalist economy is not always free using market mechanisms.

As for the political system, it is governed by the Communist Party. Centralizing power by the party The government is appointed by the party. People do not have political freedom. And lacking personal freedom Limited expression This is a positive socialist economic system, the communist dictator, which is often a partner. However, citizens will not lack food.

But there is another system which is a governing system that uses a free market economy But politics is a dictator, which may be a military dictator. Or, in the case of Brazil, a coup in the period of politics was a dictatorship, but the economy allowed the market to be at a certain level. Will play a huge role in determining economic policy as well as foreign policy.

Therefore, in general, there are 3 political economy systems, while policies that give weight to welfare or populism are determined by the state.