The Impact of Economics Study on Political Leanings: Liberal or Conservative?

Studying economics often leads individuals to reconsider their views on various economic policies and political stances. This article explores the diverse outcomes based on individual experiences and interpretations of economic theories, ranging from liberal to conservative perspectives.

The Liberal Viewpoint

For many, the study of economics can lead to a more liberal viewpoint, especially when one delves into the complexities of capitalism and its unregulated impacts. My own journey with economics has convinced me that a truly balanced and healthy economy requires a carefully regulated balance between consumer demand and capital investment. The current economic situation, with wages stagnant and wealth concentrated in a few hands, indicates a severe imbalance that leads to this conclusion.

Unregulated capitalism not only concentrates wealth but also harms the business itself by limiting the customer base with low salaries. Consequently, companies use their financial resources for stock buy-backs, dividends, and high executive compensation rather than investing in business expansion. This behavior is driven by the need to meet immediate financial demands rather than long-term growth. The key takeaway is that a more equitable distribution of money, derived through supportive liberal policies, is needed to foster a sustainable and thriving economy.

The Conservative Perspective

However, the study of economics, especially when combined with budget handling, can lead to a conservative viewpoint. At the time of my studies, I was not a Democrat and continued to hold that position, despite the strong association between capitalism and conservatism. It is important to note that in the past, the heyday of capitalism in America, the US was considered a liberal society. The connection between conservatism and capitalism is often misunderstood.

Adam Smith, the father of modern economics, emerged at the same time as the founding of this country. Capitalism is more closely tied to Darwin's survival of the fittest concept than to democratic ideals. The theory of evolution, not conservatism, underpins the basis of competitive markets and natural selection within the economic framework. Therefore, tying capitalism directly to conservatism is a misrepresentation of economic and political theories.

The Influence of History on Economic Thought

The combination of studying economics and history provides a rich and realistic context for understanding the practical application of different economic theories. This dual approach tends to convince individuals that the free market is superordinate in setting fair prices for goods and labor compared to other mechanisms.

Capitalism, as a system, is viewed as more conservative compared to alternative economic theories. When economic theory is studied alongside historical case studies, it can strengthen the perception of the free market's superiority. This can lead to a more conservative viewpoint, as the historical evidence often supports the effectiveness of market-driven pricing mechanisms.

However, an emphasis on economic theory alone can sometimes lead to idealistic and impractical liberal economic policies proposed by students. These theories may seem attractive in academic and theoretical terms, but real-world business experience usually disabuses students of such notions within a few short years. Nevertheless, those who choose non-business careers, such as academia or politics, might never fully adjust their views.

Ultimately, the impact of economics study on political leanings varies widely based on personal experiences and interpretations. Whether one leans liberal or conservative can depend on the specific economic theories studied, the historical context, and personal real-world experiences. Understanding both perspectives is crucial for a well-rounded view of economic and political landscapes.

Key Takeaways:

Economics study can lead to both liberal and conservative viewpoints. A balance between consumer demand and capital investment is essential for a healthy economy. Historical context and real-world business experience are crucial in shaping economic thought. The association between capitalism and conservatism is often misunderstood.

Keywords: economics study, political leanings, capitalism