Redistribution does not promote growth. Neither does insane leverage. Tax and regulatory certainty do.
Thursday, September 30, 2010
This could not be more correct.
Like the great Senator Phil Gramm said, "the greatest social program in the world is a W2 form." The quote from Paul Romer is even better "For a nation, the choices that determine whether income doubles with every generation, or instead with every other generation, dwarf all other economic policy concerns."
Redistribution does not promote growth. Neither does insane leverage. Tax and regulatory certainty do.
Redistribution does not promote growth. Neither does insane leverage. Tax and regulatory certainty do.
Austerity IS the way to real long term economic growth.
ReplyDeleteSure, cut taxes first - but if you cut taxes and federal revenue goes up then you haven't cut them nearly enough - as Milton Friedman would say.
If we are going to cut taxes enough to really reduce the size of government, then that would require actually reducing the size of government. Anything else would be no better than Bush's big government policies.