Jul 9, 2022 at 3:16 PM
Economic liberalism is a solid political and economic ideology that fully supports a market economy based on personal and private property production ( Helleiner,2003). The basics of economic liberalism are adhering to political and economic philosophy, which proposes restraining fiscal policy, budget balancing, induction and control of taxes, government expenditure, and minimizing national debts.
Economic liberalism opposes government intervention or injection of the economy, suggesting a free economy with efficient outcomes. The supportive state also reinforces contracts. The state’s role is to control production, distribution, and consumption. It also opposes excessive government control and inhibits free trade markets with open and fair competition.
Economic liberalism increases foreign direct investment, reduces monopoly in the public sector by decentralizing production services to private industries, and fosters economic development. It also helps abolish the country’s licensing system, increase employment rates and reduce the interest rates and tariff barriers. The state can prefer economic liberalism due to the creation of employment, and foreign direct investment, which renders additional tax income and fosters economic development in the state.
Economic liberalism increases the chances of dependence on foreign investment, resulting in unemployment as foreign corporations hire their import workforce. Finally, it can lead to inequality in income distribution and government tax income. The state is unlike the method due to foreign dependency and to improve local skills and create local employment.
The theory is compelling, with fewer challenges and adverse economic effects. It supports economic development and creates employment I find suitable and persuasive.