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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.
For instance, if I was thinking about entering the property rental business, the sheer volume of paperwork, the excessive insurance requirements and regulations like price controls likely would discourage it. In this case, if, in my estimation, the return on my investment doesn’t adequately compensate for the time and effort that is required, then I will simply discard the idea.
President of the Center for Urban Renewal and Education, Star Parker
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