How Economics Publication

How Money Distorts Politics

For mammy, Fionnuala and Oisin. First published in the Republic of Ireland in 2023 by Thames & Hudson Ltd, 41 Kings Inn St, Dublin 1, Ireland, A019x20.

Text Politics How Money Distorts Politics, Images Amy Caulfield.

Designed at the Institute of Art, Design & Technology, Dun Laoghaire. 2022.

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, reccording or any other information storage and retrival system, without prior permission in writing from the publisher.

ISBN 978-0-500-03460-7

taylorandfrancis.ie

How money distor ts politics

01. Capitalism; We live in a Society

What is economics?

How does it affect us?

How does economics affect politics?

What is capitalism?

How did we get here?

What is economics?

Economics is a social science that seeks to analyse and describe the production, distribution, and consumption of wealth.

Economics examines that part of individual and social action which is most closely connected with the attainment, and with the use of the material requisites of wellbeing”—ignoring the fact that sociologists, psychologists, and anthropologists frequently study exactly the same phenomena. In the 20th century, English economist Lionel Robbins defined economics as “the science which studies human behaviour as a relationship between (given) ends and scarce means which have alternative uses.” You might think economics is all about analyzing data from the New York Stock Exchange and applying math skills. And while these skills are foundational to economics, economists also need soft skills to put their work in context and communicate their findings.

Difficult as it may be to define economics, it is not difficult to indicate the sorts of questions that concern economists. Among other things, they seek to analyze the forces determining prices—not only the prices of goods and services but the prices of the resources used to produce them.

It is the science of economising, which means to spend less or reduce one’s expenses. While it may seem abstract, it effects our daily lives in many ways.

How does economics affect us?

Economists engage with a huge range of issues every day: the economic dimensions of climate change, international trade, racism, justice, education, poverty, health care, social preferences, and economic growth are just some examples.

The Components of an Economy

It determines The opportunity costs we face in deciding what to buy, and because we spend our time to earn money, it affects how we use our time. Inflation, economic growth and employment prospects affect our living standards, so do individual markets like housing market. We may not like paying petrol tax, but if we see it helps to reduce pollution and congestion and the tax revenue is used to subsides public transport, it gives a different perspective. Consumers’ cost of living depends on the prices of many goods and services and the share of each in the household budget. To measure the average consumer’s cost of living, government agencies conduct household surveys to identify a basket of commonly purchased items and track over time the cost of purchasing this basket.

Opportunity Costs is the value of the next-best alternative when a decision is made; it’s what is given up.

Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. But it can also be more narrowly calculated— for certain goods, such as food, or for services, such as a haircut.

We are constantly faced with choices. It may be a matter of limited time. For example, at the weekend: We could spend 8 hours working in a cafe at the Minimum Wage of €10.50. Or we could spend 8 hours studying for our A-Levels.Alternatively, we could choose to spend 8 hours of leisure (sleeping in, social media e.t.c.) Each choice has an opportunity cost. The opportunity cost of earning 8 times €10.50 = €84, is that we don’t have time to study. This could lead to poorer exam results, which could lead to lower future earning potential.

Economics isn’t just about how money flows, but also about how people react to certain events. It affects our daily lives in both obvious and subtle ways.

Macro-economics is the study of how money moves on a large scale. It connects together the countless policies, resources, and technologies that make economic development happen.

Economic Organisation Levels

Macro-Level Economics

International Trade

Unemployment

Micro-Level Economics

Economic Regulations

Resource Allocation

Human Decisions

Individual Purchases Goods

Save Money Recieves Loans

Price Setting

Economic Growth Rate

Taxes

National Income Whole Economies

Gross Domestic Product

‘Why Economics Explains Almost Everything” by Robert Frank, Harper Collins 2011.

From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macroeconomic trends, such as inflation, interest rates and economic growth.

Blindboy Boatclub, ‘The Blindboy Podcast’, 2022.

“People do weird shit. People have always done weird shit. And the more money someone has, the weirder the shit they do is.”

What is Capitalism?

Economics isn’t just about how money flows, but about how people react to certain events. It affects our daily lives in both obvious and subtle ways.

It determines The opportunity costs we face in deciding what to buy, and because we spend our time to earn money, it affects how we use our time. Inflation, economic growth and employment prospects affect our living standards, so do individual markets like housing market. We may not like paying petrol tax, but if we see it helps to reduce pollution and congestion and the tax revenue is used to subsides public transport, it gives a different perspective. Consumers’ cost of living depends on the prices of many goods and services and the share of each in the household budget. To measure the average consumer’s cost of living, government agencies conduct household surveys to identify a basket of commonly purchased items and track over time the cost of purchasing this basket.

Opportunity Costs is the value of the next-best alternative when a decision is made; it’s what is given up.

Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. But it can also be more narrowly calculated— for certain goods, such as food, or for services, such as a haircut.

We are constantly faced with choices. It may be a matter of limited time. For example, at the weekend: We could spend 8 hours working in a cafe at the Minimum Wage of €10.50. Or we could spend 8 hours studying for our A-Levels.Alternatively, we could choose to spend 8 hours of leisure (sleeping in, social media e.t.c.) Each choice has an opportunity cost. The opportunity cost of earning 8 times €10.50 = €84, is that we don’t have time to study. This could lead to poorer exam results, which could lead to lower future earning potential.

Macro-economics is the study of how money moves on a large scale. It connects together the countless policies, resources, and technologies that make economic development happen. International Monetary Fund, imf.org, 2023.

From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macroeconomic trends, such as inflation, interest rates and economic growth.

In theory, economics could be non-political. An ideal economist should ignore any political bias or prejudice to give neutral, unbiased information and recommendations on how to improve the economy of a country. However, the reality is that they are strongly linked and both influences the other.

Many economic issues are seen through the eyes of political beliefs, and as a result they are inherently political. As a result, there is often economic evidence to support both sides of a political debate about policies for a country’s economy. For example, some people are instinctively more suspicious of government intervention. Therefore, they prefer economic policies which seek to reduce government interference in the economy. On the other hand, economists may have a preference for promoting greater equality in society and be more willing to encourage government intervention to pursue that end.

If you set different economists to report on the desirability of income tax cuts for the rich, their policy proposals are likely to reflect their political preferences.

In practice there is a strong relationship between economics and politics because the performance of the economy is one of the key political battlegrounds.

How do politics and economics influence eachother?

For much of human history, economies have been virtually stagnant. The roots of global exchange had emerged by the 2nd century BC in the Silk Road, an extensive network of land and sea routes that linked Asia to Europe and remained important until the 15th century. The roots of modern capitalism emerged in Western Europe after 1500, particularly in the Dutch Republic and England. The accumulation of capital and the making of profit grew increasingly important, eventually becoming the main focus of the economy. Accompanying these changes was the growth of international trade, financial institutions, new economic theories and technologies that increased productivity. However, for the next three centuries, economic growth remained slow.

The Industrial Revolution was a new much more efficient means of production. More production meant more consumption and wealth began to increase rapidly. As a result, the desire for political control over this new wealth also increased.

Starting with the textile industry, the Industrial Revolution transformed manufacturing. From the mid-18th century, a series of inventions led to the full steam-driven mechanization of textile production in Britain only a century later, and productivity skyrocketed. The final major ingredients of the Industrial Revolution were institutions. They encompass a variety of arrangements between economic actors, including political systems, legal codes and financial bodies.

The Industrial Revolution began in Britain in the 1700s and was a period of scientific discover and rapid economic expansion.

How did we get here? (Repeat)

From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macroeconomic trends, such as inflation, interest rates and economic growth.

Economic Organisation Levels

Macro-Level Economics

Macro-economics is the study of how money moves on a large scale. It connects together the countless policies, resources, and technologies that make economic development happen.

Micro-Level Economics

2023.

It determines The opportunity costs we face in deciding what to buy, and because we spend our time to earn money, it affects how we use our time. Inflation, economic growth and employment prospects affect our living standards, so do individual markets like housing market. We may not like paying petrol tax, but if we see it helps to reduce pollution and congestion and the tax revenue is used to subsides public transport, it gives a different perspective. Consumers’ cost of living depends on the prices of many goods and services and the share of each in the household budget. To measure the average consumer’s cost of living, government agencies conduct household surveys to identify a basket of commonly purchased items and track over time the cost of purchasing this basket.

Opportunity Costs is the value of the next-best alternative when a decision is made; it’s what is given up.

Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. But it can also be more narrowly calculated— for certain goods, such as food, or for services, such as a haircut.

We are constantly faced with choices. It may be a matter of limited time. For example, at the weekend: We could spend 8 hours working in a cafe at the Minimum Wage of €10.50. Or we could spend 8 hours studying for our A-Levels.Alternatively, we could choose to spend 8 hours of leisure (sleeping in, social media e.t.c.) Each choice has an opportunity cost. The opportunity cost of earning 8 times €10.50 = €84, is that we don’t have time to study. This could lead to poorer exam results, which could lead to lower future earning potential.

Economics isn’t just about how money flows, but about how people react to certain events. It affects our daily lives in both obvious and subtle ways.

Bibliography

Is Capitalism Working? A Primer for the 21st Century. Jacob Field, Economist.

General Editor: Matthew Taylor.

Published by Thames & Hudson press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Thames & Hudson.

Economics: A User’s Guide.

Ha-Joon Chang, Economist.

General Editor: Mikey Molly and Shela Edmunson.

Published by Pelican Books press, London 2018. First edition published in Manchester 2017.

Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.

Why are Economics Relevant to Every Single Person.

Abigail Leeson, Economics Journalist MBA.

Editor: Ciara Allen.

Published by The New York Times online, New York 2021. All rights reserved The New York Times.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

Published by Harper Collins press, New York 2011. Second edition published in Manchester 2017. All rights reserved Harper Collins Ltd.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

General Editor: Alexsand Dean.

Published by Harper Collins press, New York 2011. Second edition published in Manchester 2017. All rights reserved Harper Collins Ltd.

23 Things They Dont Tell You About Capitalism

Ha-Joon Chang, Economist. Published by Pelican Books press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.

Why are Economics Relevant to Every Single Person.

Abigail Leeson, Economics

Journalist MBA.

Editor: Ciara Allen.

Published by The New York Times online, New York 2021.

All rights reserved The New York Times.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

General Editor: Alexsand Dean. Including foreword from Siobhan Sheelihan. All rights reserved Thames & Hudson.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

General Editor: Alexsand Dean.

Published by Harper Collins press, New York 2011. Second edition published in Manchester 2017. All rights reserved Harper Collins Ltd.

Why Economics Explains Almost Everything.

General Editor: Alexsand Dean. All rights reserved Thames & Hudson.

Why are Economics Relevant to Every Single Person.

Abigail Leeson, Economics Journalist MBA.

Published by The New York Times online, New York 2021.

All rights reserved The New York Times.

Economics: A User’s Guide. Ha-Joon Chang, Economist.

General Editor: Mikey Molly and Shela Edmunson.

Published by Pelican Books press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

General Editor: Alexsand Dean. Including foreword from Siobhan Sheelihan. All rights reserved Thames & Hudson.

23 Things They Dont Tell You About Capitalism

Ha-Joon Chang, Economist. Published by Pelican Books press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.

Is Capitalism Working? A Primer for the 21st Century. Jacob Field, Economist.

General Editor: Matthew Taylor. Published by Thames & Hudson press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Thames & Hudson.

Economics: A User’s Guide.

Ha-Joon Chang, Economist.

General Editor: Mikey Molly and Shela Edmunson.

Published by Pelican Books press, London 2018. First edition published in Manchester 2017.

Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.

Why are Economics Relevant to Every Single Person.

Abigail Leeson, Economics

Editor: Ciara Allen.

Published by The New York Times online, New York 2021. All rights reserved The New York Times.

Why Economics Explains Almost Everything.

Robert Frank, Economist.

General Editor: Alexsand Dean. Including foreword from Siobhan Sheelihan. All rights reserved Thames & Hudson.

23 Things They Dont Tell You About Capitalism

Ha-Joon Chang, Economist. Published by Pelican Books press, London 2018. First edition published in Manchester 2017. Including foreword from Siobhan Sheelihan. All rights reserved Pelican Books.