Write responses in your notebook or on the printed response sheet provided by your teacher. How a government distributes wealth, the role the government should play in the nation's economy, and the role of private citizens in the economic system are all key factors that characterize the differences between communism, socialism and capitalism. Generally speaking, conservatives and liberals adhere to an economic philosophy that supports creativity, productivity, protection of workers and a healthy economy. The difference between the two philosophies has more to do with their view of the cost and benefit of government's direct intervention in the process. Conservatives often support deregulation of industry, believing that regulations and the regulatory agencies, which enforce them often, have harmful impacts on our economy.
Conservatives tend to follow laissez-faire beliefs and tend to support lower tax burdens.
Liberals often support regulation of industries and support regulatory agencies. They tend to believe that the government must play a role in the distribution of wealth and must provide social programs and a safety net to protect citizens who are the most vulnerable. A conservative political ideology is a coherent and consistent set of beliefs including more limited and local government, less government regulation of markets, more social conformity to traditional norms and values, and tougher policies towards criminals. A liberal political ideology is a coherent consistent set of beliefs including a more active federal government for regulating business, supporting social welfare, and protecting minority rights. Liberals also tend to prefer less regulation of private social conduct.