Short Paper: Relationship of Politics to Economy - Essay Example

Relationship of Politics to Economy Introduction Politics refers to the science of administrating legislative or affairs, including actions within national governments. Politics may also relate to organizations and exceptional interest groups such as the academic, corporate and religious sectors of society. It is composed of social associations involving power, methods, and strategies used to make and apply laws. An economy, on the other hand, refers to a region of economic systems. This region stands as either a country or any other area; the capital, labor plus land resources; and the production, manufacturing, trade, supplying, and consumption of commodities and services of that region (Gilpin, 1987).

This paper will discuss the relationship of politics to economy, giving the views of the capitalist and socialist blocs.Politics relates to economy in the sense that neither politics nor economics can survive on their own (Gilpin, 1987). There has to be a political and economic organization that sets the regulations of engagement, and that decides the form of that engagement. The shape and function of the global economic scheme is, to a large level, dictated by the shape and operation of the global governing system.

Political apprehensions also tend to shape up economic distresses. The political concerns of weather change for instance have considerable suggestions for economic laws. The need for a greener nation will demand dramatic changes in the nature of technology and certainly all factors of the production (Gilpin, 1987).In conclusion, to a capitalist state, the relationship between politics and economy falls as power concentrates in the hands of wealthy business individuals, who aim largely make the most of profits.

Socialist economies, alternatively, would more likely allow greater management by the government, which looks to put political goals ahead of profits.ReferenceGilpin, R. & Gilpin, J. (1987). The political economy of international relations. Princeton: Princeton University Press.