THE ROLE OF SOCIAL POLICY WITHIN ECONOMIC POLICY: THEORETICAL CATEGORIZATION

Social policy is an integral part of the life of modern society, which focuses on addressing its shady sites and bottlenecks, to which other policies do not respond or cannot react naturally. The definition of social policy is not definite as well as its relationship to economic policy. While some economists argue that social government expenditure negatively affect economic performance, we show possible channels that social policy may positively affect general economic policy through. The aim of this paper is thus to discuss the role of social policy in a society with regards to its relationship to general economic policy. We conclude that if social policy is realized in a way that its stimulus function prevails and simultaneously the concept of a society of free citizens is applied, it may positively affect economic performance and thus economic policy in general.