|
Perhaps a better way to put it is: What conditions lead to prosperity?
Those would be low taxes, reasonable regulation, and a fiscally stable and sustainable government. History shows that societies where the state has first claim on the people’s resources do not produce the same level of income growth and general well-being as societies that allow individuals, working together, to innovate and increase their
wealth to everyone’s benefit.*[
Limits on the amount that government may consume from the private sector are also vitally important over the long run. For example, one of the world’s most stable and prosperous societies, Switzerland, has strong constitutional limits on government taxing, spending, and borrowing.
See also, for example, the Heritage Foundation’s Index of Economic Freedom and the connection
between limited government prosperity here.
It is also increasingly doubtful that traditional Keynesian responses to economic downturns are effective.
The following studies are worth considering in this regard: 1, 2 and 3.
Vice President of the National Taxpayers Union, Pete Sepp
Respond
|
