conservatives believe that when the Government regulates the economy higher taxes are charged on the production of goods and services and this taxes are used in building Government owned infrastructures and they are redistributed to the poor through social security as well.
regulating the economy by the government has two distinct effect which can make the economy efficient or less efficient. example of such efficiency effect is charging of higher taxes on the production of harmful goods like chemicals which would have been overproduced in a free market hence creating a danger. while the effect of the inefficiency is the charging of higher taxes on the production of regular goods and services because this will reduce input into production of the goods thereby driving prices higher in the market.
