Political Differences Between Political Parties

Political Differences in Policy between the Two Parties Within the Political world, there are many differences in opinion that split the nation into two major parties. These political parties, the republicans and democrats, find different solutions to the problems that the United States faces in today’s world. Two of the these policies that split the parties are climate change and fiscal policy. Both issues are very important to the country, but their are stark contrasts in policy when it comes to the two parties. The difference in policies between the two parties generally revolves around the difference opinion of how powerful the federal government should be. With regards to climate change, the problem has only come up in recent decades,

There are two main principles when it comes to fiscal policy. One is known as demand-side economics and the other is known as supply-side economics. Demand-side economics comes from John Maynard Keynes, an English economist, he suggested that if the government provided enough work for everyone, it would cause economic growth. This idea was first implemented in Roosevelt’s New Deal through many of the public work programs, and in times of economic crisis the democrats commonly go to demand-side economics in order to get America out of an economic slump. In contrast to demand-side economics, the republicans often refer to the idea of supply-side economics which was developed by the economist Arthur Laffer. Made popular during the Reagan administration, supply-side economics involve tax cuts, which in theory increases the amount businesses and people make, putting more spending money into their pockets, spurring economic growth. Both economic policies do something good for the people in the country, igniting what is known as the Two-Santa theory. While the democrats lower unemployment the republicans give the nation a tax-break. Both have downfalls though, demand-side economics involves frivolous government spending that comes from other taxpayers and does not include long term employment but rather a lot of short standing jobs. On the other hand, supply-side economics involves large government deficits because the government loses so much revenue, and people do not always spend the extra money they make, so they do not end up creating an economic boom. Another point in fiscal is that when the country is facing unemployment and inflation, the democrats are more likely to solve the unemployment problem, while republicans generally try to fix the inflation