John Tamny reiterates his consistent four-point prescription to economic growth in this Jan 1, 2013 Forbes article. Key points:
- Taxes are a price on worker productivity; capital gains taxes are a price on investment.
- Regulations distract businesses from their necessary focus on profits, and rarely work as intended, citing the banking sector as the most heavily regulated in the US.
- Tariffs are a tax placed on our work, and worse they tend to prop up ailing businesses, and are met with retaliation tariffs from countries that are targeted with our own tariffs.
- The dollar is the most important price in the world. Investors commit capital today for future dollar income streams. When the dollar returns are diluted by inflationary devaluation, investors are more likely to be timid, or hide altogether.
- “American exceptionalism” is a function of the US having historically been the place where the world’s most ambitious migrated given a desire to live and work under a government whose sole purpose was to protect their freedom to pursue their dreams.