THE PLACEBO EFFECT OF THE PENDULUM SWING OF TWO PARTY POLITICS IN AMERICA.

Politics in America comes down to the prime directives of life, which is survival or degree there of. In times of peace, people vote mainly in regards to issues of economics, because economics is the conduit to their standard of living and survival. War and insecurity of safety also triggers people’s survival instincts and compels them to vote in a way that addresses their emotion of fear..

Politics in America is more often a placebo than actual medication, though. I say this because economics and the economy is such a major part of people’s political choice determinate and how they vote. It is often lamented during elections that “it’s the economy stupid”. Thus, people usually vote to see positive economic change if the masses of people are not better off then they were 4 years earlier. However, in truth, neither political party can better stimulate the economy than the other, hence there is no real medicine given to the economy.

Economics is not an exact science, but rather, a behavioral science. The reason being is that consumer consumption habits represents 2/3 of our GDP and the behavior of consumer’s consumption are predicated upon their psychological confidence in the future. Therefore, much of our economic performance and oscillation is born from the self fulfilling prophecy of consumer psychology and confidence, given that we are all interdependent and codependent parts of the economic system.

Now, given that consumers and citizens have more power over the economy than do politicians, via their psychological degree of confidence, the politics of changing whose in office simply works to alter people’s confidence levels. It’s kind of like when a guy is trying to attract the attention of a females, we may make some superficial changes that makes us feel more confident. In turn, when we get the attention we desire the think it was due to the superficial change…but in truth the gained attraction was due to the display of confidence and not the superficial change itself. Having the ability to make a change and that change thus inspiring confidence, has a way of turning things for the better.

That is what happens when we vote for a different party or a different candidate looking for positive change. When we make the change, it gives us more confidence and a sense of control. It is that confidence and sense of control that then transforms our consumer behavior and stimulates the economy via our purchasing and investments. Hence, things get better economically because of the confidence inspired by change, but not necessarily the policies of the people or party that we changed it to. This is why the nation oscillates back and forth between the two parties. When things are not going well under one party or politician, we change the party or politician in office and the confidence that such gives us makes things better economically.

Things will be radically different going forward for the nation. The reason being is that the war on terrorism and structural changes in the global economy that is creating a reduction in comparative advantage for us production of goods and services. Thus, people will vote for change and the placebo affect of the past, when things were structurally sound, will lose its ability to turn things around. Politics will then become uglier as they scapegoat and seek the tried and true method of playing class and race against one and other, to the degree that it used to be done in the past.