QQuestionPolitical Science
QuestionPolitical Science
Compare the assumptions on which the different economic theories are based. How are these related to the competing ideologies of conservatism and liberalism? What do you see as strengths/weaknesses of each theory? When looking at things like the recent tax cut and stimulus package, are we consistent? Should we be? Why? Reference: Dye, T. R. (2017). Understanding Public Policy (15th ed.). Pearson.
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Answer
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Step 1**Step 1:** Understand the main economic theories and their underlying assumptions.
There are four main economic theories: Classical, Keynesian, Neoclassical, and Neo-Keynesian.
Step 2
Classical: Based on the idea of a self-correcting economy. Assumes that markets will reach equilibrium through supply and demand. Minimal government intervention is necessary.
Final Answer
Economic theories have different assumptions, which align with the ideologies of conservatism and liberalism. Each theory has strengths and weaknesses. The recent tax cut and stimulus package can be seen as a blend of classical and Keynesian theories, reflecting the need for flexibility in policy decisions. Consistency is not always necessary or desirable, as economic conditions change and policies must adapt.
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