- In the 18th century, the separate disciplines of political science and economics were known as the field of political economy, which studied the management of economic affairs, and a central debate focused on the role of government in the economy.
- Differing views about the role of government in the economy lead to differing systems of political economy.
- Under a pure free-market system, government has only minimal intervention in the economy. The opposite extreme is a centrally planned economy, in which the government controls all economic activity.
- Most nations' economies lie somewhere between the two poles described in the previous section. The United States has primarily a free market economy, but government influences economic activity. Meanwhile, communist China has strong government control of the economy, with some free-market characteristics.
- Often, the state of a nation's economy influences voter behavior at election time. Voters often re-elect the government in power during good economic times and punish it during economic downturns.
- Because economic conditions can affect politicians' re-election prospects, sitting politicians will often manipulate the economy to win re-election. For example, a huge tax rebate in an election year could be an attempt by the sitting government to win voter support.
