Fiscal conservatism

In American political theory, fiscal conservatism or economic conservatism is a political and economic philosophy regarding fiscal policy and fiscal responsibility with an ideological basis in capitalism, individualism, limited government, and laissez-faire economics. Fiscal conservatives advocate tax cuts, reduced government spending, free markets, deregulation, privatization, free trade, and minimal government debt. Fiscal conservatism follows the same philosophical outlook as classical liberalism. The term has its origins in the era of the American New Deal during the 1930s as a result of the policies initiated by modern liberals, when many classical liberals started calling themselves conservatives as they did not wish to be identified with what was being called liberalism in the United States. In the United States, the term liberalism has become associated with the welfare state and expanded regulatory policies created as a result of the New Deal and its offshoots from the 1930s onwards. Fiscal conservatives formed one of the three legs of the traditional American conservative movement that had emerged during the 1950s, together with social conservatism and national defense conservatism. Many Americans who are classical liberals also tend to identify as libertarian, holding more culturally liberal views and advocating a non-interventionist foreign policy while supporting lower taxes and less government spending. As of 2020, 39% of Americans polled considered themselves "economically conservative". Because of its proximity to the United States, the term has entered the lexicon in Canada. In many other countries, economic liberalism or simply liberalism is used to describe what Americans call fiscal conservatism.