Tuesday, November 08, 2011
Can a Tsunami Hit Politics not Economics in any Given Country?
Looking at what is happening around the world; one would argue that politics and economics are indeed intertwined. Therefore, when there is a fire in economy, politics will feel the heat. This may be true when you observe what is going in Eurozone. Greece, one of the European members was to be bailed out by Euro bank because it was almost on the edge of a financial precipice. Because of the flip flop, George Papandreou, the Greek prime-minister, calling - and then cancelling - a referendum on the bailout plan. Papandreou is to resign because he was seen as incapable for assuring other European members that they will pay back.
Also, due to prevailing economic-political situation, Italy may be the next. Next, the politic and economic sphere in Greece pushed stocks around the world into the fresh shockwaves of doubts about the sustainability of the Eurozone.
Stacy Meichtry, in Wall Street Journal; quotes Girgio Napolitano, Italian president saying that Silvio Berlusconi, Italian prime-minister is to resign and a new national unity government is to be formed in order to tackle and overhaul Italy’s economy and take immediate steps to reduce its 1.9 trillion euro debt.
US politics is not safe when it comes to the influence on politics and economics vice versa. According to Daniel Eisenberg, University of Michigan and Jonathan Ketchan, University of Southern California contended in their article “Economic Voting in the US Presidential Elections: Who Blames Whom for What” in which they presented four evidences that influence voters namely:
1) Which is more important for determining people’s votes, national or local economic conditions?
2) What time frame do people consider in economic voting?
3) Which demographic groups are most sensitive to the economy in their voting behavior?
4) How does economic voting depend on the political context—in particular, whether a candidate is running for re-election, and whether the incumbent party also controls Congress?
To sum up, their findings showed how economic conditions influence greatly voter’s decision.