July 11, 2012
Economics Considered a Social Science
Social and political forces are in effect constantly in life. Political and social forces have a certain control on economic actions. Individuals and business organizations are affected by the current economy and by government policies and regulations (Colander, 2010). Societies have particular norms that affect how the economy will work. Business ideas may make have a demand by consumers but may not be accepted in society. In societies, markets are created. Households become the consumers of those markets. Society plays a large role in the economy. The desire to want and start a business is an economic force. Social or legal forces can encourage or discourage a business idea from becoming a market force. Markets developed in society because something was offered to improve the way of life for society. Economic forces become market forces when a market is accepted in society (Colander, 2010). Economics can have an influence on personal and professional lives. The legal and social aspects of society would need to be considered before it develops from a business idea to a market force. Economies going through financial crisis can also have an influence on business. Government develops policies in an effort to regulate the future of the economy. These rules and regulations may hinder or limit business decisions. Society households have the ultimate power in the economy but business and government make much of the economic decisions. Government policies fluctuate in the entities they are designed to protect. With the fluctuations of policies and regulations, businesses and individuals have to adapt to the new regulations continually (Colander, 2010).
Colander, D.C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw Hill/Irwin