There is an indisputable connection between politics and economics. Oftentimes, economic performance turns out to be a major political battleground. It is not uncommon for several economic challenges to become political since they often bring up discussions that are inherently subjective.
In an ideal situation, economics should be non-political. Generally, a perfect economist should neglect all political sentiment to provide unbiased suggestions that can improve the economy.
Then, elected politicians are then responsible for making decisions, based on these recommendations. However, we live in a practical world where the influence of politics in every facet of society is undeniable.
Take, for example, the Australian election is predicted by many to have lasting consequences on the country’s economy. Lots of economic challenges must be tackled by the winner of the election. With this in mind, political economy is an important topic to talk about.
What Is Political Economy?
Political economy is a branch of social sciences that studies the connection between government, individuals, and public policies. Experts in this field are responsible for studying how economic theories, including socialism, capitalism, and communism, work and their impact on the real world.
Through political economy, we can understand how the formulation and implementation of public policies can have drastic effects on the social systems, as well as the economy in general. Political ideology has a significant impact on economic thoughts.
There are various economic challenges that are often assessed through political beliefs.
Take, for instance, the Obama care act was signed into law during the Obama administration to reduce high healthcare costs in the U.S.
Besides this, the ACA invests in programs that are set aside to reduce the cost of health care while improving overall healthcare quality and raising the number of insured. However, the ACA was met with great criticism.
As conservatives criticized the increase in tax and higher insurance premiums to compensate for the Obama care, professionals in the healthcare industry were wary of the additional workload this would place on medical service providers.
For others, the intervention of the government in the lives of the citizens should be checked, and the Obama care act is something that keeps socialism unchecked.
With this in mind, many citizens prefer various economic policies that will reduce the interference of politics in the life of the citizens and society in general.
New Australian Prime Minister To Tackle Economic Challenges After 2022 Election
The 2022 Australian federal election took place on May 21, 2022. Members of the 47th Parliament of Australia were elected. Former Prime Minister Scott Morrison, who was aiming to win a fourth consecutive term in office, was defeated in the election by Anthony Albanese. 151 seats in the lower house and 40 of the 76 seats in the upper house were up for election.
For the first time in a decade and a half, the Australian Labor Party was declared the winner of the majority government by winning 77 seats in the house of representatives.
Anthony Albanese was sworn in as Australian Prime Minister on May 23, 2022. In the process, he became the fourth labor leader to emerge as the winner of an election against the opposition since the second world war.
Over the past few months, the country has suffered from various economic issues. These include rising inflation, which has been out of the control of either party. However, the winner of the election would be charged with the responsibility of tackling them.
Besides the rising inflation, other economic situations the new prime minister must solve are increased cost of living and the various uncertainties across the globe, thanks to recent events such as the Russia-Ukraine war.
In April, inflation in the country reached a 20-year high. As food and petrol prices increased significantly, the consumer price index also rose by 5.1% on an annual basis.
This high level of inflation showed how strong the country’s economy was moving. To tackle this unprecedented price hike, the central bank had to raise interest rates to a level that was never expected by experts and analysts in the country. This should ensure that borrowing and spending by consumers are significantly reduced.
With these growing concerns, there have been various questions about whether the new prime minister in Australia can manage the rising cost in the country.
While it is not disputable that the new prime minister faces the problem of how he won, success in his administration will require general public support and a wealth of experience. Fortunately, the Camperdown native can call on the latter to navigate tough situations.
Mr. Albanese is a political lifer who can rely on his decade of experience in the government. Indeed, lots of variables are often at play in politics.
While many people can suggest that the handwriting is on the wall, there are several harbingers of good things to come under the Albanese administration and several expert predictions can back this up.
Again, while nothing can ever be guaranteed in life, Australian natives can now hold their breath once again as all signs point to good times.
