Last week, we discussed why free market policies work to promote economic growth and prosperity. Lower marginal tax rates increase incentives for production. Reduced regulatory costs do the same. Stable money promotes investment because investors are assured that the value of their investment will not be depreciated by inflation or a declining currency. Reduced government spending reduces the drain of resources from the private sector.
But as Art Laffer recently estimated, reduced marginal tax rates may roughly be considered 10 times as important as reduced regulatory costs, and stable money may be considered 10 times as important as reduced tax rates.
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