Political Economy, Importance Of Political Economy

Political Economy is the study of how economic systems work. Political Economy is concerned with the distribution of power within a society. It examines how people use their power over others to gain wealth and status. Political Economy is often associated with economics but is not identical to it.While political economy examines the social ties between groups of people, economics focuses on the creation and consumption of products and services.

Political Economy is about how societies organize themselves. It studies the relationships between individuals, families, businesses, governments, and international organizations. It is about the way how these different parts of society interact with each other. Political Economy is about the way that people make decisions. It is about the choices that they make and the consequences of those choices.


Political Economy is the study of how the state affects the Economy. It is about the relationship between government and business. It is about the role of politics in shaping the Economy. Political Economy is about how the Economy influences politics. It is about how the Economy shapes how we live our lives.


Political Economy is concerned with the way that the Economy works. It is about the structure of the Economy. This is concerned with the factors that influence the Economy. It is interested in how the Economy develops. It is about the causes of change.


Political Economy is a branch of sociology. Sociology is the examination of human conduct and society. It is about the interactions between individuals and groups of people. Political Economy is about what happens when people interact with each other. It is about how people relate to each other. It is concerned with how people behave tincludes economics, but it goes beyond it.


Political Economy is similar to public policy. Public policy is the set of rules and regulations that govern the activities of government. It is about the actions of the government. It is concerned with what government does. This is about government. It is about how government operates. It is about the policies that government makes.


Political Economy is also similar to law. Law is the system of rules and regulations governing government activities. Like public policy, it is about the actions of the government. Like the political Economy, it is about government. It deals with the laws that govern the country. It is about the legal framework that exists in a country.


Political Economy is different from economics. Economics is the science of measuring value. It is about the measurement of money and its exchange. Political Economy is about people’s values. So be it almost the importance that people hold. So It is about the beliefs that people have. It is about the ideas that people think.


Political Economy is distinct from political philosophy. Political philosophy is the study of the nature of good and evil. It is about the meaning of right and wrong. It is about the purpose of life. Political philosophy is about the principles that guide us. It is about the moral codes that exist in society. Political Economy is about culture. It is about how an organization works. So be   about how people act.  Is about the norms that exist in society.


Political Economy is not the same as history. History is the look at occasions that came about withinside the past. Is about the past.  It is about the present. It is about the future. This is about the trends that exist in society. It is set what’s taking place now.


This is the more specific than geography. Geography is the look at the bodily functions of the earth. It is about where something is located. Political Economy is about human activity. It is about how humans interact with each other. Geography is about the world around us. Political Economy is about our world. It is about how we live.


Political Economy is much broader than economics. Economics is the scientific study of how people produce, distribute, and consume goods and services. Political Economy is about everything that happens in society. It is the take a look at of ways organization works. It covers the complete spectrum of human activity.


In politics, the Economy drives the government. Government policy determines whether the Economy will be healthy or sick. Health in the Economy refers to an equilibrium between supply and demand; sick refers to an excess of one over the other. Government policies determine whether the country will be a capitalist, socialist or mixed Economy. The government manages an economy through taxation and buying and selling goods and services. The country can achieve economic growth and provide for its citizens through this management.


The political Economy’s driver is economics because it explains how governments affect it. For example: in 2016, the world gross domestic product (GDP) was $80.6 trillion. This number represents the total revenue that a country produces. Gross means real and refers to an aggregate total of all sectors of a country’s Economy combined under one umbrella term- economics. Hence, this is also known as national economics or global economics. The three main political-economic viewpoints reflect the objectives of regulating, regulating out of existence and being free to grow.


Introduction: The first viewpoint emphasizes regulation to avoid excesses in the Economy, particularly inflation and insolvency in business firms. In extreme situations when businesses cannot pay their debts, bankruptcy laws allow them to fail without causing widespread economic disruption. The second viewpoint advocates for abolitionism to abolish unneeded industries such as obsolete manufacturing companies in favor of more innovative sectors such as information technology development. Lastly, free-growth proponents believe that governments should interfere as little as possible in an economy’s growth so natural laws can prevail without interference from authorities.


Since economies have physical components such as money and products, political economists who practice political Economy are those who study this subject area. Therefore, economists strive to provide sound guidelines for economic management through political and economic theories such as liberalism and communism. Without government regulation or management of an economy, a country’s financial health would deteriorate rapidly due to natural laws such as survival of the fittest in business or inflation within prices, wages, labor input, consumers, households within families within families within homes under specific circumstances such as survival of a nation under particular events such as.


Importance Of Political Economy


Political Economy

This is the study of how economic activity is affected by politics. It includes the study of the relationship between economics and government policy. In short, political Economy studies the interaction between the state and society.


Economic Policy

Economic policy is the rules and regulations governing the production, distribution, and consumption of goods and services. Governments establish these policies to influence the behavior of businesses and consumers.


Market Economics

Market economics is the branch of economics that studies the market system, including the factors that affect supply and demand. It is involved with the distribution of scarce help among contesting needs.



Macroeconomics is the analysis of the Economy as a whole. It focuses on the long-term trends in the Economy, such as inflation, unemployment, and interest rates. Macroeconomists try to understand what causes these trends and how they might change over time.



Microeconomics is the study that examines the decisions individuals make in their daily lives. It looks at how people choose what to buy and sell, how much to work, and how to spend money. It analyzes the prices charged for products and services and how they are determined.


Public Choice Theory

Public choice theory is a school of thought that states that individual citizens’ actions have little effect on public policy. Instead, politicians use their positions to benefit themselves and their friends.


Neoclassical Economics

Neoclassical economics is based on the idea that markets function best when left alone. It emphasizes the importance of free trade and minimal government intervention.



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