Libertarian philosophy is particularly relevant to economic policy. The following article gives a quick overview of how libertarians think through economic questions.
Libertarian Party on Budget & Economy
The Market allocates resources efficiently; government does not
A free and competitive market allocates resources in the most efficient manner. Each person has the right to offer goods and services to others on the free market. The only proper role of government in the economic realm is to protect property rights, adjudicate disputes, and provide a legal framework in which voluntary trade is protected. All efforts by government to redistribute wealth, or to control or manage trade, are improper in a free society.
Source: 2014 Libertarian Party Platform , Nov 1, 2014
Reduce taxes, spending, and eliminate controls on trade
To ensure the economic freedom and enhance the economic well-being of Americans, we would implement the following policies: dramatic reductions in both taxes and government spending; an end to deficit budgets; a halt to inflationary monetary policies; the elimination of all government impediments to free trade; and the repeal of all controls on wages, prices, rents, profits, production, and interest rates.
Source: National Platform of the Libertarian Party , Jul 2, 2000
Abolish all regulation of banks in favor of free market
We favor free-market banking. We call for the abolition of the Federal Reserve System, Federal Deposit Insurance Corporation, the National Banking System, and all similar interventions. Our opposition encompasses all controls on interest. We call for the abolition of the Federal Home Loan Bank System, the Resolution Trust Corporation, the National Credit Union Administration, the National Credit Union Central Liquidity Facility, and all similar interventions.
Source: National Platform of the Libertarian Party , Jul 2, 2000
Pass constitutional amendment requiring a balanced budget
We support a constitutional amendment requiring the national government to balance its budget. A balanced budget amendment should provide: a. that neither Congress nor the President be permitted to override this requirement; b. that all off-budget items are included in the budget; c. that the budget is balanced by cutting expenditures, and not by raising taxes; d. that no exception be made for emergency.
Source: National Platform of the Libertarian Party , Jul 2, 2000
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The following video by Keith Hughes explains how the preferences of a libertarian, including his economic preferences, compare with those of the other major parties.
