This is a broad question and it changes from society to society. In the United States, where you continue to have opportunity, it’s very different from a third world country where there is a lack of opportunities. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
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 |
The impact that a minimum wage requirement has on an economy depends on how high it is set, but in general, while a minimum wage requirement might raise the wages of certain unskilled workers, because these requirements don’t come with any additional revenues for the businesses paying them, they also tend to destroy some jobs at the lower end of the economic spectrum. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
The government’s role in an economy should be to create an environment in which people feel as though they will be rewarded for, and reap the benefits of, their innovation, by doing things like protecting property rights, enforcing contract rights and ensuring that taxes aren’t prohibitively high. These factors help to spark the entrepreneurial spirit in people because they know that their efforts, if successful, will be rewarded. In societies were these basic rights aren’t protected, there is little spirit. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
Private workers’ unions play a diminishing role in the economy, partly because once we move to a global marketplace, the costs that they impose through higher wages and benefits in industries where pricing is very sensitive, makes the unions a liability. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
The way in which taxes on the wealthy impact a society depends on how high the taxes are. At some point, if taxes become too high, they become a disincentive for people to do additional work, because the additional value that is earned from that work is diminished. The point at which this happens, however, changes over time. This principle, nevertheless, is not exclusive to the wealthy, it’s actually a basic principle that affects everyone. The only reason that we apply it more often to the wealthy is because in our graduated, or progressive tax system, they’re the ones who are most likely to reach the point where there’s some disincentive. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
The simpler the tax system is, the better, otherwise it quickly become a vehicle for social engineering or other schemes (through the use of things like tax deductions and tax credits), rather than simply a way to raise revenues for the government. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
More and more, I find myself thinking that to a certain extent a person’s views are genetic or inherited. Some of the latest research suggests that people’s political views are in fact inheritable, at least to a certain extent, which may explain some of the gulf. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |