Politics Follows the Economy

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Economics Determines Politics, Not the Other Way Around

The An important question from the OSE perspective is where political power comes from - as understanding the source of power helps us to affect it (for the better). It is generally accepted in the US that money buys politics [1], and that the politics are thus corrupt [2]. Where does money come from, however? Money comes from economic activity. The sum of economic activity is the Economy. Thus, it may be said that politics are determined by the economy. The take-home message from the OSE perspective is that if we want to change politics, we must change the economy. From this viewpoint - protesting and political reform are superficial efforts at change - as the real change must happen at the level of economy, which by definition will change politics. This does not appear to be controversial.

Thus, it is important to keep clear that Economics Determines Politics, and not that Politics Creates Economics.

Practical Consequences

  • Do you want government reform? Change the economy.
  • Do you want an open source patent system? Change the economy.
  • Do you want to end wars? Change the economy.
  • Do you want to change X? Change the economy.

You get the picture.


  • Whoever pays the piper calls the tune. This is not controversial.
  • “Money to get power, power to protect money” was the motto of the Medici family. [4]
  • Concept of Regulatory Capture follows the principle - in that companies buy influence over regulatory agencies that are supposed to regulate those companies.