Veronique de Rugy writes about economic growth in the new year, and she mentions the recent book by Larry Kudlow and Brian Domitrovic to help make her case.
No wonder almost 70 percent of Americans think we’re on the wrong track. They instinctively know that the faster the economy grows the more they prosper. As my colleague William Beach and I recently calculated, if the economy were to grow at only an inflation-adjusted 2 percent rate, it would take 35 years for the size of the economy to double. If the economy were to grow at a 3 percent rate, it would take 23.5 years to double, whereas it would take only 17.7 years with 4 percent growth.
The foundation for economic growth is also the central message Larry Kudlow and Brian Domitrovic write about in their book, “JFK and the Reagan Revolution: A Secret History of American Prosperity.” There’s no better time for the authors to remind us that attaining economic growth isn’t that complicated. First, you start with three indispensable building blocks: property rights, the rule of law and sound money. Without those, they explain, it’s very difficult to enjoy robust and strong growth.
The next step to boost the economy is a combination of low taxes, smaller government, free trade and predictable labor laws and regulations. The more of these policies the government gets right the more economic freedom we enjoy. As my colleague Matthew Mitchell documented, there is a solid and positive association between economic freedom and economic growth. Better yet, economic freedom also leads to a reduction in homicide rates, and it’s positively related to the female empowerment index, the promotion of tolerance and so much more.