There is an inevitably linked relationship between economics and politics. The economic structure of a society defines the political system. The ownership of the resources, the way they are produced and the way they are distributed determines power. Hence, people in control of the resources have the economic power. The form of economic power that existed determines the political system because if the inevitable link between politics and economics.
In the feudal systems that existed in the premodern world, resources were controlled by the same people who held political power. Therefore, the system enabled more exploitation of the common man and slavery and bonded labour were practiced. The economic and political systems were linked . However, when the economic system was revolutionized, it also affected the political system and fragmented the power held the landlords. The modern world saw the rise of capitalism.
With the rise if capitalism, the concept of private ownership was introduced and the economic power was shifted from the state towards the industrialists and the capital owning class. Emphasis was given to individuality and free will. With the change in the economic system, there was also a shift in power dynamics. Hence the capitalists and the industrialists were the ones who had political power.
The political systems have always been influenced by the economic systems in place throughout history. The two are interlinked, influencing government policies and economic behaviour of firms
There is no doubt that economics and politics are inextricably linked. One cannot exist without the other and the economic system greatly influences the politics inside and outside the state. States with communist regimes tend to have a more government controlled economic system compared to democratic states.
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