4.9

Standard 4C

Widely held political ideologies shape policy debates and choices in American policies.

Learning Objective

Explain different political ideologies on the role of government in regulating the marketplace.

ESSENTIAL KNOWLEDGE

Liberal ideologies favor more governmental regulation of the marketplace, conservative ideologies favor fewer regulations, and libertarian ideologies favor little or no regulation of the marketplace beyond the protection of property rights and voluntary trade.

Ideological differences on marketplace regulation are based on different theoretical support, including Keynesian and supply-side positions on monetary and fiscal policies promoted by the president, Congress, and the Federal Reserve.