“Liberal vs Conservative Economics”

Thoughts on a Free Market Economy…
“Contrasting Liberal vs Conservative Economics”
By Phyllis Hunsinger
April 1, 2018

Conservative economics is defined as a political-economic philosophy regarding fiscal policy and fiscal responsibility advocating low taxes, reduced government spending, and minimal government debt.
Liberal economics is defined as a political-economic philosophy following the ideas of John Maynard Keynes, an economist who believed that government, not the marketplace, is the real driver of commerce.

To contrast the differences:
• Conservatives believe the tax burden should be distributed more broadly across all incomes, while liberals believe it is fair for the tax burden to be borne primarily by the rich
• Conservatives believe market failures happen and the government is ineffective at correcting them; while liberals believe market failures are catastrophic and the government will be effective in correcting them
• Conservatives believe re-distribution of income is not the government’s role; while liberals believe some Americans suffer from past inequities and government must make equalization policies
• Conservatives believe America’s free enterprise system results in economic efficiency and opportunities for all; while liberals believe issues of fairness are more important than economic efficiency

Is there any evidence that economic conservatism actually works?

Korea, endured a brutal Japanese occupation in WWII, then faced a civil war that left the country divided into the North and South and its capital in ruins. South Korea, poor in natural resources, was one of the poorest nations on earth, on par with sub-Saharan Africa. But with free trade agreements and a focus on the export market, South Korea is now an economic power.

The comparison with North Korea is stark. North and South Korea started from the same point: same people, same culture, same history. One took a free market approach, the other did not.

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