Conservatives and the liberals differ in a wide range of issues both socio-economically and their understanding about the role of government. In the light of this this essay seeks to compare and contrast the views of the conservatives and the liberals on economic affairs and the role of government. In addition this paper will look at how both divides acted in response to the financial crisis of 2008. First of all, conservatives are strong believers in the free market. They believe that the market should be competitive and should provide opportunities for all. In order to maintain this free system, conservatives believe that the government should be involved in dictating the outcome of the market. This means that conservatives believe in limited government that allows entrepreneurs both large and small to favorably compete in the market and to let the market forces and the invisible hand of capitalism to dictate the outcome of the market. This is not to mean that conservatives do not view government to be important. Instead, conservatives are of the view that government should have limited control of the people and the market. The government should play a facilitative role by ensuring that things such regulations are minimized to aid in the development and growth of small businesses (Heilbroner and Singer 1).On the contrary, liberals believe that government can improve the outcome of the market. Liberals believe that government should be actively involved in shaping economic policies such as regulation to make sure that there is no manipulation of the free market. Liberals are strong believers in regulations in the market place for both revenue generation and to maintain a competitive market. Therefore, the huge different that exists between liberals and conservatives is their understanding of the role of government. Conservatives believe in limited government while liberals believe in a big government that can improve the outcome of markets.
With regards to the 2008 financial crisis, there was a difference in responses across the political pendulum. Liberals believed that there was a need to raise taxes on the wealthy in society so as to protect the middle class from more economic strain (Krugman 44). The liberals were also of the view that the debt ceiling should be raised so that the government would be in a position to address the economic deficit that faced the United States. On the other hand, conservatives vehemently opposed the raising of taxes and the debt ceiling (Medvic 77). They were of the view that increasing America’s debt owed to other nations would hurt American generations in the future. Conservatives believed that America would bounce back from the financial crisis by making sure those things such as government money going to welfare was reduced. They also believed that America should begin more exploitation of its energy reserves such as coal. In addition, they believed that the implementation of the progressive tax cuts such the Bush cuts would slowly minimize government spending while making sure that key sectors of the economy such as the military remain well-funded.
Works Cited
Heilbroner and Singer. The Swings of the Pendulum: Conservatism and Liberalism. Washington DC: Bureaus of Labor Statistics, 2000. Print.
Krugman, Paul R. The return of depression economics and the crisis of 2008. New York: W.W. Norton, 2009. Print.
Medvic, Stephen K. In defense of politicians: the expectations trap and its threat to democracy. New York: Routledge Publishers, 2013. Print.
