Economic growth is difficult to project because it is associated with many drivers. Tran (2019) claimed that economic freedom is the main economic growth propellant. Economic freedom refers to protecting private property and reducing public intervention on private issues, including limited restrictions on consumption, distribution, production, and markets. (Oussama et al., 2017). Economic freedom leverages economic growth, and it is the reason why researchers study economics.
Reasons for Studying Economics
The reasons for studying economics are diverse because of different preferences. People study economics to provide insightful information and forecasting needed to make informed decisions within governments and firms (Vakhitova & Gadelshina, 2015). Similarly, the knowledge of economics and issues associated with it as a discipline affect our daily lives in areas such as interest rates and wealth, inflation and taxation, environment and energy, and emerging markets (Financial Express, 2018). In addition, studying day-to-day life experiences enable businesspersons to understand consumer behavior, crucial information needed to excel in a business.
Conservative Versus Liberal
The country’s economic growth rate lies in its determination to change conventional ethos. That said, a country can promote liberalism or conserve the status quo. Economic growth can only be enhanced by increasing the revenue generated in an economy by enhancing change (Tran, 2019). As such, Joe Biden’s administration is going in the right direction through increasing corporate taxes to promote equality and equity. This view makes me a strong liberalist—a diehard supporter of the Democrat philosophy.
The US 2021 Economic Policies
The tension between China and the US made the former US administration sanction the UK for collaborating with China in trade. However, Biden’s administration removed trade threats against the UK (Shalal, 2021). Moreover, the upheaval of COVID-19 cases created financial constraints since the government had to look for money for supporting households and SMEs. Following the incident, the new administration, through the American Rescue Plan of 2021 (Zandi & Yaros, 2021), spearheaded the development of COVID-19 vaccines and launched mass vaccination to eliminate dangers brought by the virus.
Conclusively, economic freedom causes economic growth, which provides the rationale for the increased economic growth rate in the 1990s. Liberalism should be the way to go, although it can happen at the expense of forgoing conservativism. Nonetheless, being liberal cannot stop one from keeping focus through studying economics. Policies including re-joining, uplifting sanctions for the UK, and initiating pandemic stimulus funding make people enjoy economic freedom.
References
Financial Express. (2018). The importance of studying economics in today’s world. Web.
Oussama, Z., Ahmed, H., & Fatma, H. (2017). Financial development, economic freedom and economic growth: new evidence from Tunisia. Economic Review: Journal of Economics and Business, 15(2), 7-18. Web.
Shalal, D. L. (2021). U.S., China to assess phase 1 deal soon, Biden trade chief says. Reuters. Web.
Tran, D. V. (2019). A study on the impact of economic freedom on economic growth in ASEAN countries. Business and Economic Horizons, 15(3), 423-449. Web.
Vakhitova, T., & Gadelshina, L. (2015). The role and importance of the study of economic subjects in the implementation of the educational potential of education. Procedia – Social and Behavioral Sciences, 191, 2565-2567. Web.