The relationship between economics and politics. Economic policy Economics and politics in interrelation in simple words

The life activity of people is characterized by the breadth and variety of actions, actions, and manifestations. A special place is occupied by activities aimed at transforming nature in order to satisfy the material needs of people. This type of activity is called economic activity. This type of activity is called economical. Concept economy- complex, multi-level and multifaceted. In English modern economic theory concept economy is repeated dozens of times, and in different economic categories - countless times. But if we systematize these concepts, we can conditionally reduce them to a limited number of definitions. Concept economy is formed from two concepts - the Greek oikos (oikos) - house, household and nomos (nomos) - law, rule - that is, laws, rules of housekeeping.

In modern conditions, economics is the science of methods of farming, as a result of which a person changes and adapts substances, means, and the wealth of nature for his needs. Economy is a set of sectors of the national economy, means and processes used by people to ensure their livelihoods. System economic relations, developing between people in the process of social reproduction (production, distribution, exchange, consumption) of material goods and services.

Different economic schools interpret differently the nature of economic relations that develop in society between people. Some assign a decisive role to the relations of appropriation of the material conditions of production, that is, to property relations. Others call the problem of choice in conditions of limited resources the main factor that has a decisive influence on all spheres of people’s lives. But operating with limited resources is not yet an economic aspect. English economist Lionel Robbins believes that manna from heaven, although limited, can neither be exchanged nor set aside in favor of another product. People were kicked out of heaven. People are deprived of eternal life and unlimited benefits. And if people choose something, they are forced to give up other benefits that they would not have given up under other conditions. Economics is the relationship that develops between people in the process

production, distribution, exchange and consumption of goods in conditions of limited resources, the possibility of their alternative uses. Economic relations manifest themselves through a system of contradictions. Various social communities - classes, groups, individuals - each have their own interests and inevitably collide with the interests of other subjects. So that the community of people in their relations with each other is not guided by the laws of the jungle, they are forced to develop rules of social behavior in all spheres and, above all, in the economic sphere. After all, it is difficult to deny the priority of economic interests, no matter how much this contradicts the spiritual nature of man.

Economic policy

Economic policy is born together with the state, designed to protect the interests of various social communities. Economic policy is the behavior of the state in the sphere of the country's economy. Economist James Keynes viewed economic policy as the general will embodied in government regulation. The German economist Wilhelm Eucken understood economic policy as a set of government measures to influence economic processes. Nobel laureate in economics, James Buchanan considered economic policy to be a process of exchange between a sub-object and the state, where everyone voluntarily agrees to exchange a share of maintenance costs public services for services received jointly. Economist Milton Friedman attributed economic policy to the art of decision-making, which makes it possible to identify the basic unity of ultimate goals among representatives of different economic movements and helps to overcome disagreements. So, economic policy, carried out by the state, the government, is a system of practical measures in the field of economic management to provide direction to economic processes in accordance with the goals, objectives and interests of the country.

In the definitions of the concept of economic policy, the close dialectical relationship between economics and politics is clearly visible. The relationship between economics becomes clearer if we take into account the modern scientific approach division into positive and normative functions of economic theory. If the positive function considers the real economic process, that is, it records the state of the economy, then the normative function personifies judgments about what the economic process should be, that is what should be. Economic policy performs primarily a practical, normative function. Of course, the interrelationship between economics and politics is deeper than the functions they perform.

Economics is the determining factor in the “economics-politics” contradiction. Economics is primary and determines the direction of activity of political institutions: government, political parties, public organizations. Economy is the totality of economic interests of economic entities. Business entities are structured into various social communities with their own specific, unique interests, mainly economic. Behind any action - individual or socially significant - are interests. To defend them in a pluralistic society, we need appropriate organizational forms - political parties or movements, public organizations who act as spokesmen for the interests of classes and social communities. There is no political party expressing the interests of the people. People is too abstract a concept. In a free economy and wage labor, some social communities are more, while others are less, able to increase and defend their interests. And although in an open society contradictions of interests do not become antagonistic, sometimes they can still manifest themselves quite sharply. The arbiter who keeps the confrontation of social communities within the framework of civilization, which ensures a certain balance of their interests, is state, government. The economic process of formation and implementation of interests dictates to government structures the appropriate social policy aimed at reconciling contradictions. Otherwise, social cataclysms arise that threaten the foundations of the existence of the state. All this gives reason to consider politics as a concentrated reflection of the economy.

The relationship between economics and politics can be positive and negative. Let's take inflation. Is it true that inflation is objectively inherent in a market economy? Only partially, to a small extent. Another idea is more reasonable. Inflation is the result of incompetent government policies. The desire of the state to live beyond its means inevitably pushes the government to issue money, which can create a short-term illusion of success. If reasonable limits are violated, inflation grows like a snowball, and therefore has the property feed up. The wage-price spiral (demand inflation) can generate hyperinflation of hundreds and thousands of percent per year. Mixed with cost-push inflation, hyperinflation literally destroys the country's economy, and with it the government with its voluntaristic economic policy. The latest government is taking a number of emergency measures to curb inflation. By manipulating penny credit and fiscal instruments, sharply cutting social benefits, freezing wages, the government is trying to reduce the money supply. Inflation is subdued. Apparently success has been achieved.

But for some reason, production continues to decline, unemployment rises, and the social climate in the country worsens? It turns out that overzealous efforts to neutralize inflation can also have negative consequences. An excessive decrease in the money supply, the monetization coefficient (the ratio of the money supply to the gross domestic product) is reduced to 13-15% for the optimal indicator of 50% or more, leads to hypoxia of production due to a lack of working capital. The purchasing power of the population is falling. Lack of money makes loans more expensive. Banks service only short-term transactions. The real sector of the economy continues to stagnate. Of course, an unprofessional approach to the formation and implementation of economic policy gives a negative result.

Unfortunately, the illustration of inflation is not an abstract one, but a real process that continues in Ukraine. But inflation shows how a thin line separates carefully calibrated qualified approaches in economic policy from spontaneously made unfounded decisions. In social systems where economic life is stable, market relations operate in a clearly defined legal field, the dependence of the economy on political decisions is less profound than in those countries where difficult attempts are made to reform the economy on a market basis. In transitional economic systems, when the old economic mechanism has been dismantled but a new one has not been created, the influence of economic policy should not weaken.

Practice of economic transformations in countries post-Soviet space in the 90s showed that the removal of government institutions from regulating transition processes, carrying out privatization and forming a new ownership structure, creating a market mechanism and legal support for its functioning has a negative impact not only on the economy, but also on public life countries. Meanwhile, only having a reasoned idea of ​​the goals, objectives and timing of economic reform can one determine the most optimal ways to implement the necessary transformations. However, even in developed, traditionally market countries, the interaction of economics and politics remains relevant. And here there are clearly defined boundaries of state regulation that should not be violated. The upper limit of intervention in the economy is maintaining a competitive environment. Reducing intervention in the economy should not lead to a narrowing of market relations or deformation of the economic principles on which the relationships between economic entities - enterprises, firms, associations - are built. The principle of doing no harm is one of the main ones in economic policy. But we cannot do without the active role of economic policy.

The famous entrepreneur and financier George Soros considers market fundamentalism to be the main danger for an open society, which makes government intervention in the economic process a thing of the past. But mistakes in economic policy strengthen the position of supporters of market fundamentalism with its principles of “laisser faire” (invisible hand) of Adam Smith, which denies any noticeable influence of the state on the economic life of society. The nature of the two-way connection between modern decisions and future events depends on what the government relies on in decisions on reliable, objective scientific knowledge or biased, sub-objective.

To a large extent, unqualified political decisions in countries with a market economy, and in those that are just trying to create one, become the main reasons for the emergence of problems in economic practice. Economist George Stigler emphasizes that no real economic system achieves the ideal. This also applies to the market model, which is characterized by a social phenomenon known as market failure. However, the degree of lack of sophistication in the market is much less political fiasco, to which miscalculations in the economic policies of real social systems lead.

graduate work

2. Dialectics of the relationship between economics and politics

All spheres of life in any society, especially modern society, are closely interconnected. Today, the trend of interdependence of various areas of social life is manifested extremely clearly not only within states, but also within the world community. This trend can be seen most clearly in the relationship between politics and economics.

Politics is most closely intertwined with economics. It is well known that politics and economics are the foundations of the entire system of public relations. That is why their interaction plays decisive role in the development of any society. Politics is deeply mediated by the economic sphere, economic relations and economic interests of society. In turn, the impact of politics on the economic life of society is significant and multifaceted.

The need and possibility of this impact is steadily increasing as the scale of the economic sphere itself increases, its structure becomes more complex and economic relationships in society and between countries deepen.

There are several points of view on the relationship between politics and economics.

Thus, in domestic social science over the past seven decades, the literally canonical concept of a materialist understanding of history, formulated back in the 19th century by K. Marx and which has since become the cornerstone of Marxist-Leninist philosophy and sociology D.P. Zerkin, has dominated. Fundamentals of political science: A course of lectures. Rostov n/d: “Phoenix”, 1996. - p. 56. . According to the mentioned concept, politics is just a superstructure over the economy, which does not have its own internal logic of functioning and development, determined by the functioning and development of the economy, which is the basis of society (politics is a concentrated expression of the economy). Although Marx allowed the possibility of interaction between the base and the superstructure, the influence of the superstructure on the base, the main thing in his sociological concept was the thesis that economics determines politics, that is, the method of production of material life determines the social, political and spiritual processes of life.

The diagram of the dependence of the political sphere on the economic basis in Marx’s theory looks like this: Productive forces give rise to certain production relations, that is, the relations into which people enter into each other in the production process. Production relations determine a certain social structure, a set of social classes, that is, groups of people occupying the same place in the mode of production. Social structure gives rise to corresponding political and legal institutions, as well as spiritual and ideological systems.

In other words, the relationship between economics and politics in Marx’s theory is of a cause-and-effect nature: economic phenomena are the cause, and political phenomena are the effect. This theory has been seriously criticized in modern social science. Thus, philosopher and sociologist Raymond Aron notes that the results of his research do not confirm the above theory and indicate the dominant role of politics in relation to economics.

Understanding the supremacy of politics requires taking two things into account.

It is not a question of replacing a theory that views society one-sidedly through economics with another theory that defines society through politics. Any theory with a one-sided approach to society through any one aspect of social life is false. It is not true that with a particular method of economic management there can certainly be one single political system. When the productive forces reach a certain level, the structure state power can take a variety of forms. For any structure of government it is impossible to foresee what the system or nature of the functioning of the economy will turn out to be. If we consider this problem with historical point, point of view, it is obvious that it is always possible to identify the causes of this or that event, but none of them can ever be considered the most important.

What does the primacy of politics mean in R. Aron’s interpretation? He argues that modern industrial societies, which have many common features(distribution of labor, growth of public resources, etc.), differ primarily in the structures of state power, and the consequence of these structures are certain features of the economic system and relations between groups of people. In modern conditions, everything happens as if the possible specific options industrial society It is politics that determines.

The second meaning that R. Aron puts into the primacy of politics is the human meaning. In relation to a person, politics is more important than economics, because it directly affects the very meaning of his existence. Human life consists of relationships between individuals - the fundamental element of any community. The mechanisms for exercising power, including the methods of appointing leaders, influence relations between people more than anything else.

Thus, the primacy of politics that R. Aron speaks of is strictly limited. We are not talking about causal supremacy, in which politics is the cause and economics is the consequence (that is, cause and effect in Marx’s scheme change places).

The idea of ​​unilateral influence makes no sense. What is meant is that, firstly, the differences between societies are determined primarily by the structures of state power that determine certain features of the economic systems of these societies, and secondly, politics as a sphere where people who give orders are elected and methods are developed in in accordance with which these orders are given, more than any other sphere influences the nature of human relations in society.

The question of the relationship between economics and politics is deeply analyzed in the famous work of K. Popper “ Open Society and his enemies." The conclusion that the author comes to as a result of analyzing Marx’s theory is directly opposite to the latter’s concept. According to the position of K. Popper, political power is of a fundamental nature; it can control economic power. Thanks to it, it is possible to develop a program to protect the economically weak, create laws limiting exploitation, insure workers against disability, unemployment and old age, etc. In other words, political power is the key to economic protection; it and its inherent methods of control are the most important thing in the life of society Popper K. Open society and its enemies. M., 1992. T. 2. - p. 183. .

The need for active policy influence on the economy increases at turning points in the life of society. This situation developed in Belarus at the turn of the 80-90s, when the transition to a market economy began.

It is known that the market is far from an ideal mechanism for the functioning of economic life. Direct or indirect policy impact on markets and prices to varying degrees is always necessary. The instability of the economic life of today's Russia is rooted in the absence of a clear, scientifically based, long-term state program economic development countries. The named crisis processes in the economy of Russian society are thus directly related to the unpredictability and inconsistency of the state’s economic policy.

Although the issue of the relationship between politics and economics is traditionally given the main attention in Russian science, this does not mean that the relationship between politics and other spheres of social life is less significant from a scientific point of view or is of less importance in real life society.

Politics is inseparable from law, the norms of which regulate political relations, establish the rules of the “political game,” defining the framework for the activities of both the ruling elite and the controlled majority. Law itself, in turn, is a complex phenomenon, a product of the culture, religion, traditions existing in a particular society, the interests of the ruling elite, the influence of the world community, etc. Acting as a product of state activity, law at the same time serves as its regulator. An important role in regulating the political life of society is played by moral norms, the ideas that exist in society about good and evil, and the values ​​on the basis of which the life of any person should be built. But morality itself largely depends on the religion existing in society. M. Weber showed what an extremely important role the religious Reformation and the Protestant ethic that resulted from it played in the emergence of capitalist society and democratic institutions. Moreover, the role of religion in the political life of society is not limited only to the development of certain moral values. Religion is capable of affirming in the public consciousness certain ideological ideas about politics (about the relationship between spiritual and secular power, the responsibilities of the state, etc.); it itself can claim the role of a universal political doctrine, and the church can claim the role of the political elite, as this happens in Islamic fundamentalism.

In general, we can say that the political sphere, political life, being a relatively independent form human life, is organically connected by complex functional relationships with all other forms of social life.

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Both areas are so important for the normal functioning and development of countries that a crisis in one leads to negative consequences in the second. Conversely, progress and recovery have a beneficial effect on the processes occurring in another system. It is necessary to reveal the essence of the concepts themselves:

  • Politics is a concept that includes not only the activities of government bodies and public administration. There is another definition. Thus, politics is the management of resource allocation. One of its functions is to regulate and establish the order of the conditions of material production in the country and the joint labor of the population;
  • economy is a historically defined set of social-production relations. At its core, the country’s economy is a single national economic complex, covering all links of the P.R.O.P. (production, distribution, exchange and consumption).

How can politics affect the economy?

When the subjects of production processes begin to conflict, then political intervention in these economic relations in nature becomes necessary.

It should be noted that the political system is still distinguished by greater independence in decision-making compared to the economic one. But there is one nuance - political course largely depends on intrastate economic relations. Although external political pressure (for example, international sanctions) leads to changes in the structure and principles of running the economy in the country.

You can rely on various doctrines, but Engels’s economic theory gives a clearer idea of ​​how differently a political system can influence the system of economic relations.

Three key aspects:

  • politics slows down the development of the economy, then there will be discontent among the population due to the decline in living standards;
  • politics can serve as a catalyst for individual economic processes, which can lead to both positive and negative consequences;
  • The political power elite has the ability to influence (suspend and redirect) resources in accordance with their interests in one or another segment of the economy.

The instruments of economic policy are: the state budget (fiscal policy) and the Central Bank (monetary policy).

How does economics influence politics?

The influence of the economy on the political system is obvious, because it is its material component. Any political ideology cannot exist separately without some kind of financial basis; it needs a reliable production basis.

The economy of any country and in any industry segment always tries as much as possible to adapt, take into account and satisfy the economic needs of citizens. The political system has to take these trends into account and reinforce them at the legislative and law-making level:

  • If for a stable economic situation in the country it is necessary to support and help small and medium-sized businesses develop, then state policy should directly contribute to this. For example, reduce interest rates on loans for individual entrepreneurs;
  • when a crisis occurs in a country due to a decline in production and a lack of financial resources, the government must pursue an active policy aimed at attracting foreign investors.

Modern economic system, thanks to the process of globalization, is becoming increasingly independent. Now the state cannot categorically dictate to the population what to produce and in what volumes. But the political system retains the important function of regulating certain economic processes (for example, the antimonopoly service monitors price levels).

First, let's look at the essence of the concepts of economics and politics.
Economy is a complex economic system that ensures the satisfaction of the diverse needs of people and society by creating the necessary material goods. In any society, the economy is called upon to solve three problems: what to produce, how to produce and for whom to produce. In other words, it is necessary to determine what goods and services (clothing, furniture, cars, food, services, etc.) and in what volume are needed by society (and people) in this moment. It is also important to evaluate which technologies, methods of organizing production, and the use of which resources will give the maximum economic and social effect. In addition, society should take into account how the products produced and, accordingly, the income (profit) received will be distributed among economic entities

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The relationship between politics and economics.

In the first part of my speech, I will try to reveal the essence of politics and economics as social phenomena. Next, I will talk about the impact of politics on the economy and vice versa, their relationship.
1. Politics and economics as social phenomena
First, let's look at the essence of the concepts of economics and politics.
Economy- a complex economic system that ensures the satisfaction of the diverse needs of people and society by creating the necessary material goods. In any society, the economy is called upon to solve three problems: what to produce, how to produce and for whom to produce. In other words, it is necessary to determine what goods and services (clothing, furniture, cars, food, services, etc.) and in what volume society (and people) need at the moment. It is also important to evaluate which technologies, methods of organizing production, and the use of which resources will give the maximum economic and social effect. In addition, society should take into account how the products produced and, accordingly, the income (profit) received will be distributed among business entities.
Policy” is one of the most common and polysemantic words in the Russian language. speaking politicians understand:
-sphere of society where political actions take place;
- political relations or business competition between rival interest groups, as well as people for power and leadership;
In everyday life, politics is often called any purposeful activity, be it the activity of a head of state, a party or a company, subordinated to a specific goal.
Politics as a phenomenon of social life is not inherent in human society initially. The primitive society, which existed for many millennia, was socially homogeneous. There were no political institutions and organizations, no politics. The increasing complexity of society as it developed and the emergence of conflicting interests in it led to the emergence of the state and, with it, politics.

2. the relationship between politics and economics. All spheres of life in any society, especially modern society, are closely interconnected. This trend can be seen most clearly in the relationship between politics and economics. It is well known that politics and economics are the foundations of the entire system of public relations. That is why their interaction plays a decisive role in the development of any society. Politics is deeply mediated by the economic sphere, economic relations and economic interests of society. In turn, the impact of politics on the economic life of society is significant and multifaceted.
It should be remembered that politics and economics are not directly connected, but indirectly through social relations. The economy, predetermining the material foundations of people's life, determines the nature of the social stratification of society. Depending on the economic content of their social interests, various groups turn to political forms of satisfying them, prompting one or another type of state activity. The form of the state's response to the social demands of groups will, of course, depend on the specific historical situation. And therefore the nature of the relationship between economics and politics will also be very different.

3/ how politics affects the economy. We can highlight the most important directions of the political process that influence the economic sphere of society:
- organization of legislative, constitutional activities, a system of executive power that implements laws and creates conditions for the functioning of economic institutions that protect one or another type of economic order; an appropriate organization of the judiciary capable of protecting the established order;
the stability of the political situation affects the stability of economic life, makes the country attractive for investment, political instability leads to the outflow of capital and the “mental” elite abroad;
the implementation of scientific and technological policy affects the growth of labor productivity, the conditions and content of work;
politics changes the economic environment by substantiating new concepts of economic development and their implementation in economic reforms.

The need for active policy influence on the economy increases at turning points in the life of society. This situation arose in Belarus at the turn of the 80s and 90s, when the transition to a market economy began.
It is known that the market is far from an ideal mechanism for the functioning of economic life. Direct or indirect impact of policies on markets and prices to varying degrees is always necessary
4.how economics influences politics. Practice shows that the impact of the economic system on the political system is manifested in many ways. There is a saying in the USA: “Economists shoot the bullets that lawyers shoot at each other.” This refers to political lawyers who act as legislators or work in government executive bodies.
The main aspects of the influence of economics on politics are the following.
Firstly, the very coming to power of a particular politician, party (political bloc) is predetermined by the program of economic measures that they undertake to implement if they gain power. Large-scale programs that promise the economic recovery of the country and an increase in the well-being of the people persuade voters to vote for those who nominate them. Thus, from the very beginning of its formation, political power actively relies on the capabilities of the economic system.
Secondly, political power It can be won, but it is no less important to keep it. Here, too, the role of the economic system cannot be overestimated. In this regard, much depends on the economic policy and political course pursued by the political authorities. The people will undoubtedly support political power that has ensured economic stability, increased prosperity, an optimal environment for business activity, and social security for citizens. Therefore, it is no coincidence that for many decades, politicians and the governments they lead have been paying the most serious attention to developing programs for the economic development of their countries. It is appropriate to emphasize here that the economic sphere accounts for the largest part of the activity of government structures. This manifests itself in the form of economic policy development and implementation.
Thirdly, the important role of the economic system in the development of political processes is manifested in the fact that all large-scale political decisions (carrying out reforms, implementing projects for structural restructuring of the economy, implementing measures to accelerate the pace of development of the country’s economy, etc.) require reliable and justified economic support.
Fourthly, the influence of the economic system on the political system is manifested in the fact that the level and state of economic development also initiate and stimulate politically directed processes and activities: reforms, restructuring, etc. The low economic level of development of the country, and even more so the crisis state of the economy inevitably give rise to state and political measures aimed at boosting the economy and getting out of the crisis. The country's high economic level of development also does not leave politics indifferent.
5. economic policy. Politics is spoken of as the art of the possible. This can be applied to economic policy with even greater justification. No economic policy can bring the country out of a deep crisis in a few days. However, no country can avoid pursuing a certain economic policy. It is different in different countries: it all depends on the economic state of the country, on the strategic course pursued in it. Economic policy changes over different periods, even within the same state. It cannot be the same in developed countries market economy and in countries undergoing transition to a market economy. In other words, economic policy in its structure, directions, and goals is dynamic, like life itself.
Both politicians and economists are interested in economic policy in detail; it is even difficult to say who is more interested. One thing is clear: often economists and politicians work together on the creation and practical implementation of economic programs, on carrying out economic reforms in order to bring the economy out of crisis, ensure economic recovery, etc.
The range of interaction between political and economic systems in states with market economies is extremely wide and diverse. The central crossroads in this interaction is economic policy.