Political Management between Ethical Grounds and Electoral Purposes. The Case of Taxation

Many empirical studies illustrate the natural correlation between freedom and economic prosperity. Therefore, the quality of economic and political institutions that prevail in a country must be assessed considering their capacity to promote a lower level of government intervention in all aspects of social life. This paper offers both theoretical and empirical arguments to support “more market and less government” framework as the best way to promote economic prosperity and political stability within our society. In their way to gain political power, politicians and political parties have to adapt their political management and electoral agenda according to the population preferences and expectations. It has been proved in the past elections that Romanians are favourable to a low level of taxation, even if part of them demands in the same time more financial support from the government. This state of facts represents a real challenge for politicians to shape their political management and strategies in order to gain more votes on the one hand, and to not affect budgetary equilibrium on the other. In some extent, the conclusions of the paper provide some possible solutions for the electorate to rationally discern between different electoral offers, to understand their short run and long run economic and social effects.