The economy is rough, and getting rougher. Now is the perfect time to understand, and embrace, the philosophy of fiscal conservatism. If you’re wondering what fiscal conservatism is, its benefits, and its drawbacks, this article should help.
What Is A Fiscal Conservative?
A fiscal conservative is someone who advocates for limited government spending and lower taxes. They typically believe that government intervention in the economy should be limited, and that the free market be allowed to operate as much as possible.
As a political philosophy, fiscal conservatism is primarily concerned with two things:
- Reducing government spending.
- Reducing the tax burden on individuals and businesses.
So, how do fiscal conservatives reduce government spending? It’s simple: Cut wasteful spending, streamline government programs, and privatize certain sectors of the economy.
Reducing the tax burden is equally as simple. We can be achieve it by lowering marginal tax rates, eliminating loopholes and deductions, and shrinking the size of government.
Simple stuff, right?
The Benefits Of Fiscal Conservatism
Fiscal conservatives believe that the private sector is better equipped to handle economic growth and that government intervention should be limited. There are several benefits of fiscal conservatism, including:
- Reduced government spending can help to reduce the national debt, which continues to grow at an alarming rate.
- Lower taxes can leave more money in the pockets of taxpayers and encourage private sector investment. More money for individuals, means more business, means more jobs. It’s a chain reaction of economic positives.
- Limited government intervention can create a more efficient economy by allowing individual freedom, which allows market forces to operate freely.
On a more personal level, fiscal conservatives tend to be conservative with their own money. They’re careful (read: smart) spenders, and are reluctant to take on debt. They usually support lower taxes and smaller government spending.
Are you someone looking to live a more economic lifestyle in these challenging times? Try talking to a fiscal conservative (you can thank us later).
Yeah, But What About The Drawbacks Of Fiscal Conservatism?
You know, I was hoping you wouldn’t go there . . . *nervous smile*
Fiscal conservatism is not without its critics.
Some argue that reduced government spending will lead to reduced social services and reduced economic growth.
Some claim that fiscal conservatism makes it difficult to invest in infrastructure, and other society-benefiting projects.
Still, others argue that lower taxes will unfairly benefit the wealthy more than the poor, who need them most of all.
Fiscal Conservatism And Libertarianism
Fiscal conservatism is often associated with libertarianism, a political philosophy that advocates for an even smaller role for government in society. However, not all fiscal conservatives are libertarians, and not all libertarians are fiscal conservatives.
While there is overlap between these two philosophies, they are not identical. The two philosophies often have wide disagrees on social issues, but that’s a topic for another day.
The Future Of Fiscal Conservatism
In the United States of America, fiscal conservatism has been a key philosophy of the Republican Party since its birth almost 170 years ago.
One of the most well-known examples of fiscal conservatism is the legendary President Ronald Reagan’s economic policies, collectively dubbed Reaganomics.
And sure, in recent years, there has been some disagreement within the party about what fiscal conservatism actually means. Some Republicans advocate for more limited government spending than others. We also have some debate about how to balance the budget without raising taxes.
Regardless of these (relatively minor) party member disagreements, fiscal conservatism remains a central principle of the Republican Party. That probably isn’t going to change any time soon, if ever. And it shouldn’t. Fiscal conservatism has proven beyond all reasonable doubt to be the most beneficial economic philosophy for all people.