The Electoral Economics Paradox focuses on how governments interact with conditions of economic growth. Furthermore, this paradox includes government interactions with market economies and how economic interactions coincide with politics. The electoral economics paradox states that all governments require positive economic performance. In other words, governments need peer economies to support their foundations, a weak economy means weak infrastructure. The paradox also requires support and compliance and states that democratic governments are particularly vulnerable to economic performance. This is particularly evident through the connection between politics and economics and how elections are influenced in favor of particular candidates given the state of the economy or those candidates who intend to adopt economic policies. The paradox of electoral economics, as stated, greatly influences the direction in which elections go. For example, a poor economy could cause an official to be voted out of office or could result in his or her electoral defeat. In short, according to the paradox, economic performance is the best predictor of who will win elections. Another idea established by the paradox is that governments often make economic decisions based on non-economic considerations. In other words, politicians or government officials will implement economic policies that are not supported by economic evidence. Other examples to support this idea are that if a government's primary consideration is to restructure the economy, but if they do not want that consideration to be elected, governments can play against the rules of economic games. Furthermore, since governments have a lot of influence on the economy… the central part of the paper… is economic and social policy. Provides insight into how the relationship between government and the economy affects politics. As stated previously, this relationship is closely linked to each other; There is a close link between elections and the economy. For example, the economic policies proposed by politicians are strongly linked to their chances of re-election. The state of the market is also a key factor in the reelection process, so to some extent the economy dictates politics. The paradox of electoral economics is an important part of society, it can dictate elections, influence economic policies and contribute to a large extent to the state of the market. “Growth does not only require markets, one's entire existence cannot under any circumstances be taken for granted. It requires institutions capable of dealing with coordination problems that cannot be solved remotely" (Eichengreen, p.40).
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