The relationship between politics and the economy is a complex one. It has been difficult to find the right balance between the two. There are many issues that arose from this imbalance, including:
Economic inequality: The gap in wealth distribution has widened over time, with some people being vastly wealthier than others.
Political instability: You can attribute this to frustration with the government as well as corruption within government institutions.
Why politics matters for the economy
Politics matters for the economy because it affects the flow of resources, the distribution of power, and the pace at which innovations are adopted.
Politics affects the economy by influencing how people allocate resources and distribute power. In addition, politics also impacts what innovations they get to adopt.
Today’s world is changing rapidly as technology advances and new business models emerge. These changes brought about a need to understand how politics can impact economic growth and development.