In the last session, we talked about politics in relation to economics and government intervention. Free markets do create competition and competition is considered good but as we know without regulation and intervention some aspects of the free market tend to lead towards inequality and unfairness may it be by means of the creation of a monopoly or by any other means. The government intervenes and sets price floors/ceilings, imposes taxes etc. to eliminate the existence of inequality and unfairness.
We talked about how competition among political parties is healthy and if economic theory is applied to it then competition would lead to better quality political parties. But just as with free markets and competition without government intervention we know that problems are most likely to exist. Just as with that we can understand that the same can be said about competing political parties. But the main issue that would exist is: How does a government intervene in matters that concern the government itself? How does is regulate and put controls on political parties. That is a question that came to my mind after our discussion on economics and politics.
1 comment:
I agree with Sarim's views on how economics and politics are related. Yes, indeed a free market economy is much more efficient than a control economy with the government interfering time and again to adjust the inequalities and disparities in income and wealth and other related issues. However, I would also like to point out that in politics there might be a different scenario. There might not always be a healthy competition. Instead, this rigorous competition between the political party might contribute in them losing sight of their original agenda and goal that is, to serve the society and facilitate to the needs and wants of the citizens. For example, in Pakistan we see different political parties dominating different areas and enjoying tremendous support in these areas. It is quite evident that there is no such thing as a 'healthy competition' existent in Pakistan. Instead, this multiparty system has only contributed in disintegrating the country while the political parties are largely corrupt and inefficient.
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