“But for those willing to recognize the simple lessons of history, slow growth is not hard to diagnose or to cure.”
Earlier this week, the Wall Street Journal published an op-ed by John Cochrane, Senior Fellow at the Hoover Institution, that explored our current lackluster GDP growth. The conclusion is not that improvement is impossible, but rather that some deep restructuring is necessary to make it happen.
Cochrane’s growth-oriented policy program outlines the need for more efficient regulations and a simpler tax system that would encourage work instead of undermining it. He says the ideal tax system should be one that raises revenues without drastically distorting economic behaviors, and a pure tax on consumption is “close to that ideal.” The piece goes on to cover a myriad of policies where free-market reforms could boost growth and improve standards of living.
While I highly recommend reading the piece, the Show-Me Institute also had the pleasure of hosting the self-described “Grumpy Economist” last month at Saint Louis University, where he talked in more depth about how these reforms could affect Missouri and the nation. The full presentation is available online here.