The Conservatives' Economic Policies vs. Liberals
The conservatives’ economic policies as well as those of liberals have triggered intensive debate that seeks to prove the ethical policies that require to be implemented in the United States’ economy (Young, 2018). Both parties have made different claims that aim at supporting the validity of their proposed policies. This paper aims at expounding that the American government should implement a conservative approach to economics because the technique yields a more prosperous economy as compared to liberalism.
Taxation
The issue of taxation in the United States has been one of the main causes of disagreement between the liberal and conservative parties (Young, 2018). However, both parties agree that federal taxation today is in an alarming state of disarray. Individuals try to seek answers as to why should the government adopt the conservative form of taxation. Although both conservative and liberal always blame each other for the current situation in the country, the conservative has been successfully articulating and selling their tax policies to the republic. The conservative way of taxation has diverse positive repercussion in the united state economy. Its policies are based on three claims, which have remarkably boosted the country’s economy.
Low Taxation
To begin with, the first claim is low taxation especially for the wealthy, whose conservative advocate encourages investment that enables the growth of the economy and prosperity for all (Sexton, 2018). High taxation would hinder the economic growth of the country by encouraging excessive and wasteful state spending. The second claim is the legal aspect whereby excessive spending through government which is facilitated by heavy taxation that leads to an unstable form of governance and the central government becomes too strong. Such spending can be termed as unconstitutional since it goes beyond the power given to the federal government. Conservative also claims that high tax-and-spend policies are not be applied in America. This claim can be traced back from American history and the myth where America has been known to have a natural sympathy for its own people through low taxation. For this reason, the conservatives have employed elaborate emotional callings to disseminate their taxation policy to the public.
Progressive Taxation
The conservatives’ progressive taxation argument allows the people of America to match up their society (Sexton, 2018). The one who pays more gets more benefits. For instance, rich people who use more goods and services than poor people should pay more. It also incorporates basic utilitarian economic theory into the tax code. An increase in the dollar has more benefits on the poor man than it would have on the rich. Maximizing the economic utility in the society is the goal of the American government which is advocated for by the conservative-progressive taxation.
Government Spending
The conservatives have continued to articulate the same attitude as the national economy league did in 1934 in the letter to Congress on taxation and spending (Galbraith, 2017). However, in the contemporary setting, conservatives do a public service by highlighting the relationship between taxation and spending. They have shown curious blind spots about government spending. Their focus on excessive spending is concentrated in benefiting a large number of people within the community, social security, and healthcare. However, in order to uplift the poor, conservatives tend to ignore the excess spending that benefits the wealthy people.
National Security
The national security of the United States plays a fundamental role in the stabilization of the economy (Sexton, 2018). Terrorists have threatened to attack the country in order for them to make a mark in the whole world considering that America has one of the strongest and well-developed security agent in the world. For this reasons, a strong national defense which is characterized by more spending in the defense will help the country to remain secure. For the small businesses to flourish, they must be made secure. Spending to promote the defense of the country will promote the growth of the businesses in the country. The conservative constitutional argument is supported by the moral component in its economic argument which demonstrates patriotic arguments.
Government Regulations
The federal government usually uses two methods of diverting private resources in order to accomplish policy goals. This includes spending programs where compulsory taxation and revenue used for the benefits of the public. The second method is through regulation where the government uses their agencies to enforce standards. Government regulation usually settles down to details rules and paperwork that sometimes prove to be costly to those required to comply. This affects small businesses, large corporations, nonprofit organizations, and local governments.
Liberal Economies
Liberal economies advocate for intervention and regulation of the economy within the country with the intention of protecting the public from corporate power (Young, 2018). However, due to the characterization of the small businesses in the United States, the conservative approach that supports free market will thrive well in the country. The economy of the United States is in need of more economic growth in order to raise the standard of living of the people of America. For this reason, the government should not interfere with the economic system of the country.
Disadvantages of Regulation
Regulatory programs are interpreted by the business world and other interest groups. Ideally, this may restrict competition, suppress innovation from the emerging business methods or new firms and the one intended to advance the market power or political interest. In the situation where the regulations are intended to bring positive outcomes or promote businesses, they can end up producing unintended negative consequences. For instance, regulating drugs may end up causing the delay in the introduction of the new life-saving pharmaceuticals. This can be of great disadvantage in the field of health of the United States and the conservative economies.
Generally, regulation tends to disadvantage the poor and the small business owners. Those who are in a position to hire lawyers and experts in the interpretation of the regulation will have an edge over the ordinary citizens. Conservative economies call for equity among all (Galbraith, 2017). The large well-established group, such as trade associations, environmental groups and easily influence hoe regulations are designed and enforced since they are well connected and have better access to legislators and regulatory officials. Idyllically, this aspect call can disadvantage ordinary consumer, taxpayers’ workers, as well as small businesses and it is against what the conservative economies advocate. The United States is better if all the citizens are equal and treated equally.
Conclusion
In order to either encourage investment in the United States from external investors or from within the country, low taxation should be encouraged, which would translate to job creation especially for the young people. Taxing high will scare away the investors and discourage the small businesses owners. United States should adopt to a conservative ideology which supports this view. Personal responsibilities where there is more government involvement would encourage innovation and independence of the American. Spending for the benefit of the public as opposed to benefit for few wealthy people is great step to enhance equity. Excessive spending to enhance national security will enable the economy to thrive and promote the environment for doing business. On the other hand, enhancing a business environment that is not very regulated will promote equity among the small business and large organizations which will encourage fair competition.
References
Galbraith, J. (2017). American capitalism: The concept of countervailing power. Routledge.
Sexton, P. C. (2018). The war on labor and the left: Understanding America's unique conservatism. Routledge.
Young, J. (2018). Reconsidering American liberalism: The troubled odyssey of the liberal idea. Routledge.
