The interaction between economics and politics is not straightforward and one-dimensional. It carries different versions of the development. The nature of their interaction depends on the ability to place the correct emphasis on the policy and to take into account the contradictions that have always existed in the interaction of economics and politics. Consequently, the ruling power must clearly understand the theoretical foundations of economic policy, its social orientation, and the mechanism of interaction between the economy and politics.
Indeed, modern gurus of politics and economy put market relationships (free market) and democratic will in the electoral system in a line with capitalism. It would be more logical to compare the formation of capitalism and the emergence and development of the monetary system that have ultimately favoured the formation of the relevant political system (Kant, 1996). In fact, capitalism fosters a counterproductive love of money: the love for money as a possession, as distinguished from the love for money as a means of reaching the enjoyments and realities of life, will be recognized as disgusting morbidity, one of those semi-criminal and semi-pathological propensities which one hands over with a shudder to the specialists in mental disease. In other words, “capitalism” is not referred to the development of society, but it is a kind of financial and economic shell, which is inherent in many or several structures (Derrida, 2002). More precisely, capitalism is the financial model that determines the scope of socio-political system and structural relationships.
One can note that capitalism involves not only the different formational stages of structural development but is also revealed in all variants of the state system: from monarchy to democratic forms of modern society. Notwithstanding, the core values in free markets and democracy clearly emphasize this point: capitalism is directed to the anarchic tendencies in both economic (free market) and political (democracy) areas. Hence, capitalism requires the free market and democracy. It should be clear that lack of principles in economics or the free market allows capitalism to use everything including the most negative in the production of the income: drugs, pornography, and harmful products %u2015 everything is given the go-ahead.
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Thus, this economic movement pushing itself would have the opposite effect of the political movement. Ignoring the objective economic laws leads to an economic crisis. Therefore, the politicians spend their time introducing reforms in order to find a rational solution. Though, the economic crisis comes when the contradictions between productive forces and relations of production has become aggravated. It is the signal that the equality of social classes has been violated. It is the symptom of capitalism.
Nevertheless, socialism as empowerment is very diverse. It is based in general on the social-democratic approach, which is the unity of the state regulation and the market; private and public property; competition and protectionism and redistribution of income through taxes and social programs; open economy and balanced tariff policy (Wright, 1999). The essential difference in the operation of economic laws in a socialist society is that they do not operate in an elemental way. Organized society shapes in a conscious purposive way and the circumstances which determine its operation. Economic laws can, thus, be made to operate in accordance with the human will, as the man through modern technology utilizes the laws of nature and makes them operate in conformity with his will (Kant, 1996). Special consideration has to be given to the role of the state in the construction and guidance of the socialist economy. Unlike the bourgeois revolution, the socialist revolution precedes the establishment of socialist relations of production. The revolutionary state, the dictatorship of the proletariat, abolishes capitalist relations of production and establishes and organizes socialist relations of production. Thus, in the first stages of the emergence and development of the socialist economy, the extra-economic force of the state plays a dominant role. It is the creative factor which brings about the changes from capitalist to socialist relations and which fosters the rapid development of the productive forces. The advantage of socialism over capitalism is that socialism centralizes (socializes) the authority and open (without implementing it yet) the door to participation in the economy of the whole society. It enables the development of democracy (Derrida, 2002).
To conclude, it should be mentioned that now the fight against socialism is deeply rooted in the economy of almost all nations. It is a violation of the principle of pluralism. To repeat, formerly, politicians of socialism and capitalism regarded absolutization of certain concepts as conceivable: the socialists interpreted the historical interests of the proletariat as universal values denying the existence of universal human interests. The capitalists, in their turn, denied flatly any positive aspects of socialism. Anyway, they both have their own opinion.