Economic Freedom and Growth

Economics professor Josh Hall describes how greater economic freedom leads to higher incomes and more economic development over time. When governments allow citizens the freedom to trade, own property, create businesses, and contract with others, the income of average citizens grows over time. This effect can be observed internationally when comparing countries, as well as domestically when comparing states in the US.

4 Comments

  1. Brian Phillips

    Reduce taxes, reduce regulation, and get government out of the way.  It really is that simple.

  2. kskousen

    Totally. But what about the stuff the government funds? You know, like police, rescue, and war forces? Is there an alfernative to all those taxes put into those?

  3. ndvo

    It seems that there are indeed alternatives to those taxes also kskousen. Some may be harder than others, but there are indeed private security and rescue plans.
    The army, especially when we think about major wars, is really a difficult problem. It must be noted that wars are usually the result of government actions in the first place and that the use of violence is usually bad for business, especially if done in large scale.
    It is not necessary, though, to find someway of funding each and every one of the “services” governments now provide to understand that taxes, being a coercive mean to an end worse than a voluntary mean to the same end.

    Adam Smith’s principle that says “keep taxes low” is sure to bring prosperity to the land that follows it. Prosperity itself and the voluntary solutions that people come up with will handle most of the problems. That possible small fraction that is left to the government (if it exists) will not resemble these giant monsters that governments now are all around the world.

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