The Economic Policies of the Us Republican Party
The Republican Party is a strong believer in free markets and in the potential of individual achievement. They believe that these two factors are the key to economic prosperity. To the present day, they have been supporters of the laissez-faire economics and of the elimination of government welfare programs.
Republican economic theory
Republicans believe in a free market where the government doesn’t need to intervene except for reinforcing property rights. They encourage personal responsibility and consider that the government should let private parties conduct transactions without restricting them.
One of the latest economic theory of the Republican Party is the supply side economics. As some of the fiscal policies based on this theory started to become popular during the presidency of Republican Ronald Reagan, these policies are also known as Reaganomics.
The theory supports the view that reducing income tax can lead to increasing GDP growth, effectively producing the same of not more revenue for the government while having a smaller tax on growth. The Republicans have long been advocating for tax cuts, and they strongly believe that the income tax system is inefficient.
Support for the less fortunate
The view of most Republicans is that a safety net is required in order to protect the less fortunate; however, they also believe that the private sector is also more efficient in providing support for the poor than the government. This is the reason why many Republicans advocate government grants to private organizations such as charities, as they believe welfare spending is more effective in the private sector rather than managed by the government.
Although the Republicans are strong supporters for the creation of a safety net to help the unfortunate, they believe that eligibility and benefits should be limited, so that these safety nets cannot be abused. In 1996, the Republicans supported and introduced the welfare reform with the help of Democratic president Bill Clinton, who signed it into law. The introduction of this reform, which limited eligibility for welfare, resulted in having many of the former beneficiaries of welfare to successfully find a job.
Opposing labor union
The Republicans also oppose labor unions, and they have supported many laws such as the right to work and the Taft-Hartley Act. These provided workers with the right to not join unions and to oppose a closed shop that did not allow them to refuse becoming part of the union at the workplace.