The paper "Relationship between Economics and Politics" is a great example of a micro and macroeconomic essay. Over the years, researches have made efforts to establish whether or not there is an existing relationship between politics and economics within a given market system (Stastny, 2002). In fact, different views have been put forth to ascertain this level of relationship that is clearly discussed in the paper. The recent plunge in oil prices has certainly identified the fact that there is definitely an economic influence on its undertakings. Thus, the paper will note the possible linkage between economics and the overall integrated oil market. The focus of this paper is on identifying the relationship between economics as social science and politics, especially how the latter impacts the former.
It also tries to examine the impacts of economics, mainly micro and macroeconomics aspects, on the global oil industry. Relationship between Economics and Politics It is argued that within any given market system there are definitely two ways for which subjects can acquire wealth, which is through economics means that is focused on aspects related to production and exchange and also, through political means, which is based on looting (Stastny, 2002).
Oppenheimer’ s perception of politics means in acquiring wealth indicated people that embraced modes of violence or even coercion in order to accumulate wealth. The numerous forms of political influence on economics can be seen in the following ways; First, the relationship is vehemently explored in public good theory. In fact, it is considered to be a direct product of the need for looking at market failures since it expounds on why it is economically rational that some forms of goods are provided by the government and their resultant provision provided through taxation means (Stastny, 2002).
The theory provided the much-needed justification for activities that politicians were already engaging in a long time before. Consequently, it also provided a perception that indicated that non-existent but rather valued goods can be scientifically identified through economics, however; their provision is entirely linked to matters related to politics, who is mainly viewed as a policymaker or even a bureaucrat’ s work (Stastny, 2002).
Stastny.D.2002. Economics and politics: Mutual relationship. A Working Paper for the Australian Scholars Conference 8, Auburn, AL. Retrieved on January 1, 2015 from http://www.libinst.cz/Files/KqLFy4r2/profile/2417/asc8_stastny.pdf