Tax reduction works.
As Steve Forbes observes, the U.S. is enacting a “stimulus” program of gargantuan peacetime proportions to rejuvenate our recessed economy. We are not alone in this. Japan, China, Europe and numerous other nations are doing the same—not yet as big as our program but based on the idea that governments can rekindle growth.
It’s all mostly wasted effort.
Governments are indeed critical to economic growth—but not in the manner we see unfolding here. While times and circumstances change, principles of economic growth do not. The basic ones have stood the test of time:
—The rule of law, especially property rights.
—Money that is stable in value, which the dollar manifestly has not been.
—Low tax rates.
—Ease of starting a new business.
—Minimal barriers to doing business, whether overseas (low or no trade barriers) or domestic (no internal cartels or onerous licensing procedures).