. If you live in a democracy, people have the power to vote for politicians that will create economic policies that will affect you in many ways whether it is taxes you pay or services you use or the things you buy. Lots of politicians take advantage of the fact many people don’t know how the economy works and they trick people into believing policies that in the end don’t benefit all people but themselves or some special interest or group of people. With a basic understanding of economics you can find which politician is a liar, knows their stuff or is plain clueless of what’s going on.