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Nino Dundua

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How real is the influence of politics on the economy?

Political scientist Harold Lasswell defined politics as the process of deciding who gets what, when and how. Economics is the study of how societies allocate scarce resources, deciding what to produce, how and for whom. The similarity of these definitions demonstrates a relationship between politics and economics, as both represent methods by which societies make decisions. But how do you think which one of them is affecting the formulation of another, politics drive economics or on the contrary

Topics: economy

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    Jul 11 2011: Depends on the country.
    Free market economies are based on an economic practice where the government has minimal influence and the free market balances itself out.
    Controlled markets in which the state directly governs goods, services and labor.

    In both cases they are symbiotic but one has more sway over the other.
    In the free market economy corporations and labor leagues potentially have more influence on directing the administration while in a controlled market they would have much less.

    But ultimately it’s in the hand of the government to create and decide the laws by which those markets would operate by. And it is the government that decides what type of economy you’ll have.

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