America's financial crisis, deep recession and anemic recovery have largely been driven by economic policies that have deviated from proven fact-based principles. To return to prosperity we must get back to these principles.
The most fundamental starting point is that people respond to incentives and disincentives. Tax rates are a great example because the data are so clear and the results so powerful. A wealth of evidence shows that high tax rates reduce work effort, retard investment and lower productivity growth. Raise taxes, and living standards stagnate...
As Milton Friedman famously observed: "Nobody spends somebody else's money as wisely as they spend their own." ...
The good news is that we can change these destructive policies by adopting a strategy based on proven economic principles:
First, take tax increases off the table.
Second, balance the federal budget by reducing spending.
Third, modify Social Security and health-care entitlements to reduce their explosive future growth.
Fourth, enact a moratorium on all new regulations for the next three years, with an exception for national security and public safety.
Fifth, monetary policy should be less discretionary and more rule-like...
These pro-growth policies provide the surest path back to prosperity.
My thoughts: We is offered is a slightly improved version of statism. Substantially there is not much market reform here. Now is proposed that will truly do anything that delay the next crisis.
Here a few suggestions:
First: Abolish the income tax. For every dollar "lost" in revenue, cut spending by $1.25.
Second: End Social Security and Medicare. End the social welfare state.
Third: Repeal regulations.
Fourth: End the Fed.
Do you want change or do you want to rearrange the deck chairs on the Titanic?