August 9, 2011
FREE FLOW...AND PEOPLE...:
A New Strategy for Economic Growth: Growth is not just about economics. Growth unleashes human potential. (KEVIN WARSH AND JEB BUSH, 8/10/11, WSJ)
A pro-growth strategy is decidedly long term in orientation. It aims for higher standards of living five, 10 and 20 years out, long past the next election cycle. It replaces the false promise made to the next generation of entitlement-program recipients with a solvent, dependable model that encourages work and savings. Reforming Social Security before costs multiply and uncertainties spread is both fairer and more growth-oriented. And enacting consumer-driven health-care policies represents the best way to control costs and improve patient care.
An effective growth strategy confronts tough challenges before they become intractable. The strategy is a threat to those who take refuge in our burdensome tax code, and it is a great source of encouragement to those who seek higher rates of return on physical and human capital. Hence, fundamental tax reform--dramatically lowering tax rates for individuals and companies while eliminating loopholes, deductions and credits--is critical to economic growth.
Achieving strong growth requires the free flow of capital, goods and ideas. We have world-class products and services to sell to the growing middle class in emerging markets. We must find our voice to resist the rising tide of economic protectionism and recognize the job-creating benefits of our pending free trade agreements with South Korea, Colombia and Panama.
The growth strategy also demands an abiding respect for the rule of law, and stable, cost-effective rules of the road from regulators. A constantly changing regulatory regime kills investment and limits economic growth. The strategy also demands investing in our own natural resources, such as shale gas and the commensurate infrastructure to re-industrialize our country, creating jobs here in the U.S. rather than shipping hundreds of billions of dollars abroad.
Finally it means ensuring that the opportunities presented by a growing economy are matched by the skills of the next generation. We need to transform our education system through higher standards, merit-based teacher compensation and school choice. No grand strategy will prevail unless far more of our high-school graduates are college or career ready.
Stronger economic growth is not just about economics. Growth unleashes human potential.
Run, Jeb, run. Posted by Orrin Judd at August 9, 2011 7:30 PM