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Comparison of Economics and Politics

Comparison of Economics and Politics

As demonstrated by the current judgments concerning the economic situation of the former Soviet bloc countries, the success of any given country's political system is often determined by the success or failure of the economic condition of the country subject to its rule. In Economics Explained, Heilbroner and Thurow limit their definition and discussion of economic theory to the particulars of the American capitalist system. For the purposes of this paper, such a definition is sufficient. It should be noted, however, that Economics as a social science encompasses the description and analysis of the production, distribution, and consumption of goods and services in any system of exchange, whether the rules of that system are capitalist, socialist or otherwise. Similarly, William Greider's critique of the American political system in Who Will Tell the People is necessarily only interested in the functioning of the American democratic political system. However, the study of Politics is generally interested in the description and analysis of institutions and processes under any form of government.

Economic theory is concerned with the patterns of consumption, spending and investment of a given economic system. For Heilbroner and Thurow, that system is the American capitalist system and the distinctive features of that system are largely identified as the ingredients of the gross national product (GNP). GNP is defined as the total of household consumer expenditures, private domestic investment, public sector consumption and investment, and foreign consumption of American goods (Heilbroner & Thurow, 1994, pp. 81-82). These factors, operating interdependently, are generally used by economists to determine the health of a given economy.

Heilbroner and Thurow explain the interdependence of the factors that go into making up a country's GNP. Households use their earnings from income and t...

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Comparison of Economics and Politics. (1969, December 31). In LotsofEssays.com. Retrieved 02:25, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1680618.html