The current United States government has greatly deviated from the economic approach of the founding fathers. However, some critical aspects of the economic policies are still being applied. They continue to shape the US economic policy framework. For instance, America still upholds property right protection as guided by the economic policies of the founding fathers.
The founding fathers established succinct economic policies to protect individual property rights in some ways. For instance, the private ownership principle gave the government the responsibility to define who owns a given property and allow the property owner to use it in the way that he or she deems fit. Furthermore, the government has the responsibility to create an environment that encourages property ownership among the citizens. The government was also given the responsibility to protect individual properties from infringement by both other people and the government itself. The market freedom economic policy gives the citizens the responsibility to freely exchange the goods and services at agreeable terms and prices between the two parties.
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Several theoretical tenets guide policy makers in the process of economic policy formulation. Time is an important theoretical tenet. Economic policy formulation is often in response to the economic trends and emerging issues at any one point in time. For instance, between 1970 to the 1990s, the economic market was highly regulated. However, economists suggested the need for a free market in the early 2000s. Therefore, the market regulations that had been instituted in response to the great depression were repealed. However, the 2008 economic crisis led to the reemergence of a regulated market. Every happening at one particular time informed the economic policy formulation.
Conclusively, the government uses fiscal and monetary policies to influence the growth and stability of the economy. Through taxation and spending, the government can regulate the amount of money in circulation at any one point in time and hence stabilize the economy.
