Are You Socially Liberal and Fiscally Conservative?

Politix | 0 comments

Written by Uma Alagappan

September 28, 2020

“Oh. No, I’m socially liberal, fiscally conservative.”

With November just around the corner, the United States is buzzing with politics. Although most years debating the pros and cons of different policies or theories seemed like an intellectual exercise, 2020 has made politics more personal than ever. Still, there are some individuals, particularly those who are fortunate enough to remain healthy during the pandemic and to have never personally experienced American anti-blackness, whose politics remain impersonal. Many of these are the same people who claim their social liberalism and fiscal conservatism with pride. 

“I’m socially liberal, fiscally conservative.”

Growing up on the north shore of Long Island, I have heard this declaration more times than I have heard someone admit to having a political party affiliation. When I was young, I didn’t know too much about this statement. Socially liberal seemed good. Fiscally conservative sounded important. And, the confidence with which people (middle school age through adults) claimed this identity was a confidence I never possessed. Who was I to question this? Confidence persuades. I never felt the need to question how someone could identify with both ends of the political spectrum. The confidence left me assured that they had done their research.

This past year, I started some research of my own. I wanted to best understand where I fall politically for both social and fiscal issues. In this research, I have found a deep incongruence with being socially liberal and fiscally conservative. Economic policy in the United States has clear social implications. Take the Tax Cuts and Jobs Act of 2017 for example. This fiscal policy is conservative, so someone who is fiscally conservative and socially liberal would support it. However, lower income taxes do not ensure decreased federal spending. In fact, as shown in the graph below US federal spending has increased since 2017.

“I’m socially liberal AND fiscally conservative.”

“…but I AM socially liberal and fiscally conservative.”

Income tax is not the only kind of tax that the 2017 tax reform decreased. It restricted state taxes (i.e. property and sales) and doubled the ceiling for the top rate of 40 percent on estate taxes. Tax revenue has decreased. So the question remains: how does the United States account for the gap in government expenditure and tax revenue? Fees and fines. Unsurprisingly, the burden of these fees and fines disproportionately rests on those with lower incomes and higher rates of policing: people of color, specifically those who are Black and Latinx. Additionally, the estate tax cuts favor those with generational wealth in the United States: predominantly white people. Fiscal conservatism is incompatible with social liberalism.

Social liberalism implies a passionate support of social justice. On the other hand, supporting policies (such as the aforementioned tax policy) that exacerbate racial inequity in the United States works against racial justice. Another facet of conservative fiscal policy is reducing regulations on business. However, business regulations (such as Title VII, which prohibits employment discrimination on the basis of race, color, religion, sex and national origin) have been some of the greatest wins for social justice in the United States. As capitalism informs the majority of United States policy, fiscal and social policy are inevitably intertwined.

But I am not socially liberal and fiscally conservative.

I am also not an expert of economics or policy. I am an American who hopes to use my vote and my voice to help shape the United States that I want to live in one day.

Faithfully,

Uma Alagappan

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