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Economic Theories in Politics

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Behavioral Economics

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A method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

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Monetarism

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An economic theory which asserts that controlling the money supply is the key determinant of economic activity and inflation.

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Marxism

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A socio-economic theory proposing that the working class should rise up to overthrow capitalism, leading to a classless society.

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Welfare Economics

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A branch of economics that focuses on the optimal allocation of resources and goods and on how the allocation of these resources affects social welfare.

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Neoliberalism

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An economic and political approach advocating for free-market capitalism, deregulation, and reduction in government spending.

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Classical Liberalism

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An economic ideology that emphasizes the importance of individual liberty, free markets, and limited government.

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Anarchism

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A political theory favoring the abolition of governments and organized states and espousing a society based on voluntary cooperation and free association of individuals and groups.

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Libertarianism

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A political philosophy that upholds liberty as its principal objective, emphasizing free will, voluntary association, and individual judgment.

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Fascism

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An authoritarian and nationalistic right-wing system of government and social organization with severe economic and social regimentation, and forcible suppression of opposition.

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Socialism

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A political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

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Environmental Economics

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A subfield of economics concerned with environmental issues, emphasizing the role of market failures and government interventions in accounting for the environmental costs of economic activity.

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Keynesianism

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A macroeconomic theory emphasizing that government intervention can stabilize the economy through adjusting levels of spending and taxation.

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Protectionism

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An economic policy of restraining trade between nations through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow 'fair competition' between imports and goods and services produced domestically.

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Corporatism

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A political or economic system in which power is given to civic assemblies that represent economic, industrial, agrarian, and professional groups.

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Communitarianism

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A political and moral philosophy focused on strengthening civil society and communal bonds as a means of working towards the common good without total dependence on the state.

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Mercantilism

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An economic theory and practice dominant in Europe from the 16th to 18th century that promotes governmental regulation of a nation's economy for the purpose of augmenting state power.

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Utilitarianism

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An ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

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Supply-Side Economics

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An economic theory which argues that economic growth can be most effectively fostered by lowering taxes, decreasing regulation, and allowing free market forces to operate.

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