Democratic candidates for president often advocate investment in education and innovation, and a balanced approach to tax reform and deficit reduction

Question

Republican candidates tend to support cutting taxes on the wealthy and lower government spending in all categories except defense. Starting with the arguments in the "Can Government Do Anything Well?" box, explain what role of government you see as best to encourage American economic development. Do you agree with Democratic candidates? Or do you prefer Republican ideas? Why?

What will be an ideal response?

Answer 1

An ideal response will:
1, Explain that everyone agrees that government must provide order, legal frameworks, copyright and patent protection, and a common currency for capitalism to thrive.
2, State that in the past, the government has stimulated growth by instituting tariffs, opening up the West, subsidizing railroads, going to war, and investing in higher education and basic scientific research.
3, Explain that those on the right may say that a too-active government hurts the economy, intrudes on people's freedom, results in heavy taxes on private property, and discourages entrepreneurs. They believe that real economic growth comes from the private sector, and government efforts to help have unintended consequences.
4, Explain that those on the left may argue that government actions have contributed to income and wealth inequality, and the deregulation of the financial industry was detrimental to everyday Americans and ultimately disastrous.
5, Take a stand.