Benedict The Republican policy is more effective in fostering

Benedict Ikpesa

Les Stanaland

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

GOVT-2305

14 December 2017

The
Economics Effects of Republican Growth Policies vs Democratic Growth Policies

A
growth policy is the state plan for economic, environmental, social, and
physical development of the state. These growth policies are used as reference
when planning the yearly budget. According to Antonio Fatás and Ilian Mihov, growth policies exert a
strong impact on economic growth of a society (Policy volatility, institutions
and economic growth, 2005). These polices are very similar to the agenda of the
government, they are used to remind the government of what they set out to do.
Over the years, the state has maintained certain growth policies even when the
president is constantly changing. This is because even though the two political
parties do not share the same ideas, they both want economic growth and they
recognize the importance of continuity in development. It is also good that the
two political parties have conflicting growth policies (Political Competition,
Policy and Growth. Timothy Besley) Example of a growth policy can be a tariff
on imported car brands to protect newly formed car companies from foreign
competitors. This growth policy will help the American based manufacturer grow
and in turn employ more workers which increases employment and the GDP. Growth
policies are very important for the growth and stability of the economy. Now
that we understand what Growth Policies mean and their importance to society,
we will now start discussing the growth policies proposed by The Republican
Party and The Democratic Party to know which is better and why.

One
of the Republican growth policies is tax-cut which they argue will help foster
more investments. The Democrats believe in progressive income taxation which
means the higher you earn the more percentage of your income go to taxes. The
Republican policy is more effective in fostering growth. The main reason why
most people work is for the income and some people work two jobs just to
increase their income. Nobody will want to work more only to pay more taxes,
which is why cutting taxes will result in increase of income because the take
home pay will increase and workers will also be more motivated to work. With
the workers motivated, they will become more productive and the economy will
grow. The tax cut will also affect businesses because they will be generating
more profit which is a result of the reduced cost of production. In economics,
businesses are assumed to be profit driven and by reducing their cost of
production, these businesses will produce more goods or services because their
marginal revenue is more that their marginal cost. As businesses produce more
goods and services, they will hire more workers which will reduce the unemployment
rate. Cutting taxes will result in more economic growth than increasing taxes,
which is why it is the better economic growth policy.

One
of the policies proposed by the Republicans is reduced government regulations
on the market place. The Federal Governments have various regulations in place
to regulate the activities in the market place and the Republicans do not want
the government to intervene in what happens in the market. However, the
Democrats want the government to keep these regulations. The Democratic Party Policy
is better in serving the general public because without government
interventions in the market place, there will be no quality control and big
companies will turn into monopolies in the market place. The market by nature
is designed to serve the people who want and can afford the goods and services
it provides. So, the market does a poor job in distributing goods and services
to everybody. The Democrats policy is better because it will ensure that goods
and services are more evenly distributed and ensure that monopolies do not
exist so that quality of goods and services do not deteriorate.

The
Democrats propose the reduction of government spending on defense. They argue
the money spent on defense can be used to finance social welfare programs. The
Republican proposed an increase in defense spending by the government. They
argue that defense should be the priority of government because the government
is responsible for protecting life and properties of the people. The Democrats
plan to reduce government spending on defense will create a situation where our
military will be underfunded. Without proper funding, the military will be
vulnerable to any foreign enemy and because they do not have the appropriate
finances, they will not be able to protect us. The Republican approach towards
military spending is better because, there won’t be an economy is there is
nothing to defend it. The protection we get from the military is critical in
having a stable economy or even having an economy at all. The main reason
people work hard to acquire property is because they know they will be able to
keep it. If we start cutting our military budget we also start reducing the
power of our military and the protection they offer. There is currently a
rising tension between North-Korea and The United States and it has been going
on for a long time. North-Korea is threatening to go to war with the United
States, but our military power is the only reason they are holding back (BBC,
2015). This is an example of how the military offers us protection and the
Republican policy to increase its budget is the better economic growth policy.

The
Republican and Democratic Party have taken two very different approaches on setting
growth policies and they both argue that they have the better growth policy.
However, the Republican Party has the best growth policies that will encourage
economic growth in our society. Their tax cut policy will increase profit margins
for all industries and this will make them expand and create jobs which will
reduce our unemployment rate. Their policy to increase government spending on
defense will ensure that our lives and properties remain secure and encourage
people to accumulate more wealth which is good for our society. With these
growth policies, the Republicans will create an environment that will result in
economic growth which is why they have the better economic growth policies.

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Besley,
Timothy, et al. “Political Competition, Policy and Growth: Theory and Evidence
from the US.” Review of Economic Studies, vol. 77, no. 4, 2010, pp.
1329–1352., doi:10.1111/j.1467-937x.2010.00606.x.

Fatás,
Antonio, and Ilian Mihov. Policy Volatility, Institutions and Economic
Growth. Centre for Economic Policy Research, 2005.

“How
Potent Are North Korea’s Threats?” BBC News, BBC, 15 Sept. 2015.

x

Hi!
I'm Brent!

Would you like to get a custom essay? How about receiving a customized one?

Check it out