How does politics effect the economy?

Question

I need a general answer not from a specific country or what.. Thanks a lot..

Answer 1

Politicians can affect how the economy is.  They can hurt it or help it.  It depends on what action they take.  Bill Clinton's policies are credited to have created a big budget surplus and also helped the economy be successful- and increased the state of the economy.  Jimmy Carter's policies nevertheless, were criticized for making the economy worse- he tried to control prices.  And that ended up causing problems and creating much inefficiency.

Governments have made mistakes while confronting economic issues.  When New York attacked high prices of living many years ago it made mistakes- the city tried to help poorer persons- but ended up causing issues by lowering rent, (lowering rent that someone could charge), causing too much demand for small supply.  So there were too many people wanting apartments and not enough to help them.

Of course there are successes.  Like how Franklin Roosevelt is credited with getting us out of Great Depression- though there are points against that and World War II was the event that got us out of the last bit of the problems.  But of course there are problems.  It all is about what policies they take and whether they take right ones.  Generally though it is dangerous when governments intervene without much thinking.

Answer 2

congress and senators determine how they will rip us off and what are taxes are