What causes an economy to prosper?
Economies prosper when innovative thinkers are able to put their ideas to work, creating new advancements in technology and productivity, making it cheaper and easier to create and sell products that we need and want. Independent Women's Forum director and Goldwater Institute senior fellow, Carrie Lukas |
Economies prosper because of the creativity, dynamism and hard work of the people in them. So ultimately, economies prosper because people are able to put their intelligence and their energy to work to fulfill their own needs and those of others. The most creative entrepreneurs not only meet, but anticipate the needs of other people and thus end up inventing things that didn’t exist before. The system which fosters this is what Adam Smith called the “system of natural liberty” and what today is called free market capitalism. Author, Commentator and President of The King's College, Dinesh D'Souza |
Freedom causes an economy to prosper. People are inherently motivated to pursue their own interests by providing products and services that others want at a price they can afford. And as people earn profits and save money they are able to use these funds to more effectively and efficiently do so. But when a government intervenes in an economy, despite its best intentions, the regulations and taxes which it imposes impedes the ability and willingness of these people to start businesses and employ workers. Economist, investment advisor, author and commentator, Peter Schiff |
The economy is not a machine, rather, it’s human beings producing and exchanging goods and services. So when people are able and willing to do this freely and creatively, an economy will prosper. What impedes this ability and willingness to do so is burdensome regulations and high taxes. In other words, if the time and effort required by a person or group of people to produce or sell a product or service isn’t worth the amount of money that they make by doing so, they simply won’t. President of the Center for Urban Renewal and Education, Star Parker |
The degree to which an economy prospers depends on the quantity and quality of economic resources available to be used within that economy. This will be a function of the nation’s endowment of natural resources, the educational achievement of the population, and the rate at which capital can be accumulated (which is largely dependent on the rate of saving in the economy). In addition, good governance in the political, government and business domains is required. A nation’'s capacity for creativity and its inventiveness will also be important factors. As it is with nations, so it is with families. Thus well organized families comprising well educated individuals with a strong savings ethic and a creative streak will, on average, prosper to a greater degree than unimaginative, disorganized families with low educational levels and a spendthrift nature. Professor & Head of QUT's School of Economics and Finance, Tim Robinson |
An economy will prosper if the people in it are able and willing to innovate, to create new methods, ideas and products. From government’s point of view, a democratic system with a fair and just set of laws and a reliable courts system encourages this because people can feel confident that they can keep the fruits of their labors. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
Perhaps a better way to put it is: What conditions lead to prosperity? Vice President of the National Taxpayers Union, Pete Sepp |
If each individual has the opportunity to exploit his or her own comparative advantage which means that they have the opportunity to do what they do best relative to other people. That means that there should be no artificial restrictions on the division of labor, on what can be traded and sold, and so forth. That's the most general condition. Cato Institute Chairman Emeritus and Senior Economist, William Niskanen |
After factors like quality education and family stability, I think it's a combination of the government understanding its responsibilities and free enterprise allowing us unlimited opportunities to earn an unlimited amount of money. It's not about what the government can do for me, but what I can do for myself and I ask that the government restrict itself to its constitutional responsibilities and allow me to go out and look for those opportunities. I want everybody to eat, I just don't want the responsibility of catching it for them. I would rather teach them them how to fish, so they can catch carp, they can catch bass, they can catch catfish or whatever they want to catch. I think we have a host of people who want you to catch it for them, clean it for them, cook it for them, and even feed it to them then wipe their face when they're done eating. Entrepreneur and Chairman of The Frederick Douglass Foundation, Timothy Johnson |
No one knows for sure. A consistent rule of law, property rights and low marginal tax rates that allow people to reap the rewards of their labor and capital investments all help, but those are all also desirable for other reasons than assuring a prosperous economy, reasons that may even be more important than assuring a prosperous economy. Other factors may include openness to trade and immigration, educational institutions, geography (a port); infrastructure (an airport); and religion or culture. Editor of FutureOfCapitalism.com and author of "Samuel Adams: A Life", Ira Stoll |
Private initiative, incentives and competition leading to capital formation, human capital formation and technological progress. Low inflation, low tax rates. Sensible government spending and regulation. Professor of Economics at Stanford University, Michael J. Boskin |
The willingness of domestic and foreign savers to invest their capital there. President of H. C. Wainwright and Company, Economics, David Ranson |
A spirit of innovation, liquidity, and an investment in human capital. Author, commentator and lead Bloomberg View columnist, Jonathan Alter |
A people raised on the belief of personal responsibility and a desire to be good at what they do, and a government that, for the most part, believes in leaving people alone. |