Thursday, July 7, 2011
African Immigrant: Is Good Politics Bad Economics?
African Immigrant: Is Good Politics Bad Economics?: "One would think politics and economics go hand in hand or better still complement each other--afterall, economics was born out of politics a..."
Is Good Politics Bad Economics?
One would think politics and economics go hand in hand or better still complement each other--afterall, economics was born out of politics and it is politicians who implement economic models. However, politics and economics in today terms are set against each other as if they are mutually exclusive.
If you follow the US political debate, you would clearly notice how politics and economics have been striped of their scientific orientation and have now become mere subjective disciplines depending on whose interest it is serving.
It is amazing to listen to the Republicans sheepishly advocating for supply-side stimulus i.e low tax rate for the rich contrary to what their own conservative economists are prescribing--this is clearly not motivated by economics but a political move to please their rich base. In negociating the debt ceiling, the Republicans have indicated they are not interested in the economic welfare of the country, they are only interested in making their rich clientele happy--they have made it clear that tax increase of any kind is off the table but cutting entitlement such as social security and medicare is the way forward.
It is a commonplace in today's democracy to see the opposition incentivised to sabotage the incumbent's economic policies to enable it to take over power--in doing so, innocent citizens get hurt economically and the country loses its pride and stature. This is pointedly not the way democracy was made to function--opposition captures power by dint of presenting credible alternative to the incumbent's policy.
If the advanced democracies are such murky, one can only imagine how it is playing out in Africa--there are reports that in Ghana, government officials are altering vital statistical information to make the incumbent look good.
Politicians should stop manipulating economics for their short-sighted goals.
If you follow the US political debate, you would clearly notice how politics and economics have been striped of their scientific orientation and have now become mere subjective disciplines depending on whose interest it is serving.
It is amazing to listen to the Republicans sheepishly advocating for supply-side stimulus i.e low tax rate for the rich contrary to what their own conservative economists are prescribing--this is clearly not motivated by economics but a political move to please their rich base. In negociating the debt ceiling, the Republicans have indicated they are not interested in the economic welfare of the country, they are only interested in making their rich clientele happy--they have made it clear that tax increase of any kind is off the table but cutting entitlement such as social security and medicare is the way forward.
It is a commonplace in today's democracy to see the opposition incentivised to sabotage the incumbent's economic policies to enable it to take over power--in doing so, innocent citizens get hurt economically and the country loses its pride and stature. This is pointedly not the way democracy was made to function--opposition captures power by dint of presenting credible alternative to the incumbent's policy.
If the advanced democracies are such murky, one can only imagine how it is playing out in Africa--there are reports that in Ghana, government officials are altering vital statistical information to make the incumbent look good.
Politicians should stop manipulating economics for their short-sighted goals.
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