. As social institutions, what are the economy and the political system supposed to do?
. As social institutions, what are the economy and the political system supposed to do?
Answer:
Assuming I understand your question correctly. The political system is supposed to help manage our economic system. Because all nations deal with "scarcity", and because economics is the study of scarcity: the political system is a structured way to deal with this scarcity problem. We as a society must answer what is known as the three fundamental economic questions: what to produce, how to produce it, and who shall receive it. Thru a mixture of capitalism with some government involvement we attempt to deal with this problem.
I think of this way. There is a trade off in economics between efficiency and equity. We need to pick a place on this spectrum, ranging from pure efficiency (free markets and capitalism) to pure equity (communism)
The market -- free exchange of goods and services -- is the best way to acheive efficiency. That is, the allocation of goods and services by a price mechanism gets those products to those most willing to pay for them.
Social institutions are put in place to counter the market place to some degree, in order to acheive some degree of equity or fairness.
well, the simlest way of putting it is that political system is supposed to make the laws, rules, regulations for living in a certain community, that means it controls the economy too, and the economy handles income, money matters, distributin etc that enables people to live in that community, so in some way it contols the political system too.
The economy of any country is largely a result of it's political system. Political systems such as communism, socialism , capitalism and nationalism achieve very different economies. If the political system is truly representative of the needs and wants of its citizens, then any political system can be adequate, sustaining and good for the people of the country.
Unfortunately, history has shown that every political system has ultimately been corrupted by individuals who fail to represent the needs and wants of the general population. As the amount of corrupting influence grows, the people stop responding to the system and the visible economy begins to deteriorate. At this point, under ground or black market economies arise to fulfill the needs of the people. Ultimately, the system fails for lack of general support and the economy is destroyed.
This scenario has played out throughout history. Nationalism, socialism, communism and capitalism have all had their finest hours only to begin deterioration at the hands of a privileged few who through greed, power and influence take advantage of their positions and forsake the multitudes.
The political system and resultant economy must represent the needs and wants of its people in order to be successful!
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Answer:
Assuming I understand your question correctly. The political system is supposed to help manage our economic system. Because all nations deal with "scarcity", and because economics is the study of scarcity: the political system is a structured way to deal with this scarcity problem. We as a society must answer what is known as the three fundamental economic questions: what to produce, how to produce it, and who shall receive it. Thru a mixture of capitalism with some government involvement we attempt to deal with this problem.
I think of this way. There is a trade off in economics between efficiency and equity. We need to pick a place on this spectrum, ranging from pure efficiency (free markets and capitalism) to pure equity (communism)
The market -- free exchange of goods and services -- is the best way to acheive efficiency. That is, the allocation of goods and services by a price mechanism gets those products to those most willing to pay for them.
Social institutions are put in place to counter the market place to some degree, in order to acheive some degree of equity or fairness.
well, the simlest way of putting it is that political system is supposed to make the laws, rules, regulations for living in a certain community, that means it controls the economy too, and the economy handles income, money matters, distributin etc that enables people to live in that community, so in some way it contols the political system too.
The economy of any country is largely a result of it's political system. Political systems such as communism, socialism , capitalism and nationalism achieve very different economies. If the political system is truly representative of the needs and wants of its citizens, then any political system can be adequate, sustaining and good for the people of the country.
Unfortunately, history has shown that every political system has ultimately been corrupted by individuals who fail to represent the needs and wants of the general population. As the amount of corrupting influence grows, the people stop responding to the system and the visible economy begins to deteriorate. At this point, under ground or black market economies arise to fulfill the needs of the people. Ultimately, the system fails for lack of general support and the economy is destroyed.
This scenario has played out throughout history. Nationalism, socialism, communism and capitalism have all had their finest hours only to begin deterioration at the hands of a privileged few who through greed, power and influence take advantage of their positions and forsake the multitudes.
The political system and resultant economy must represent the needs and wants of its people in order to be successful!
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