Economic policy serves as a reflection of a government's political ideology, guiding how resources are allocated and wealth is distributed. Capitalist ideologies emphasize free markets, minimal state intervention, and private ownership, resulting in policies focused on deregulation and tax cuts. In contrast, socialist ideologies advocate for state intervention in the economy, prioritizing social welfare and equitable distribution through programs like universal healthcare and progressive taxation. A government's economic decisions reveal its underlying beliefs about the role of the state, the significance of market forces, and the extent of social responsibility, influencing overall societal well-being.