The Difference between a Liberal Democrat and a Libertarian
Liberalism and libertarianism are two different political philosophies often used by governments or those aspiring for political offices. The two words, however, have since been applied in various aspects, including the economy, leadership, human rights, and property management.
Their meaning in politics differs from one region to the other. As a result, the words have continued to confuse many.
Generally, liberalism in politics refers to the style of leadership in which the government emphasizes and guarantees citizens’ rights and freedoms. In Britain and North America for instance, liberals are perceived to be on the left of centre. They are characterized by strong support for welfare programmes.
On the other hand, continental European classifies liberals on the right of the centre.
This is due to the groups’ support for the free-market initiative. A simple meaning of liberalism in the American politics is keeping off from socialism. Interestingly, liberalism in Australia is associated with conservativeness.
Libertarianism emphasizes on the liberty of the citizen with little intervention from the government. While liberals champion for guaranteed rights and freedoms, libertarians provide for individual freedom with minimal government involvement.
In the UK context, Liberal Democrats are political leaders whose view on the economy consists of market liberalism and social democracy. They believe that property rights are not so robust to resist possible forms of redistributive taxation. Compared to the US, liberals are rare in the UK but their beliefs are almost similar.
In the US context, libertarians believe that property rights are so robust and can resist all possible redistributive taxation. Unlike leftists who champion for economic restrictions, libertarians fight for liberalized social affairs, including freedom of speech, voluntary association, business, trade, and education. They prefer a smaller government with little involvement in social affairs.
Effect Of Political Ideologies On Economic Growth
Liberal and libertarian political ideologies both have a great impact on economic growth. This is because changes in the political environment affect business strategy and operations.
It is therefore important for owners of small, medium, and multi-billion companies to have a deeper understanding of and monitor the political environment. Political philosophies result in government actions which can impact an economy in a number ways:
- It affects the market attractiveness of a particular region. Good ideologies attract investors and support business growth.
- Government legislation impacts on the relationship between a company and its suppliers, customers, and partners.
- Since the government is a major consumer, friendly ideologies would mean more revenue for respective suppliers.
The UK political ideologies have changed significantly in the recent past. For entrepreneurs, following the changes is useful in predicting possible business trends in the near future. According to a number of studies, political norms and perception have shaped a number of economies. In fact, they affect the economic performance of a country.
There are scholars who have suggested that libertarian societies have witnessed faster economic growth in the recent past than liberal counterparts.
According to their studies, libertarian societies have developed better policies and systems that require minimal government intervention. This has greatly contributed to the difference in levels of development.
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