Monday, August 04, 2008

The Growth Solution

Carl Schramm & Robert Litan, in the current issue of The American argue for a new entrepreneurial agenda. Excerpt:
By the policies they champion, our future presidents can have an important impact on how rapidly our economy grows. Continued growth in per capita incomes, generated through ongoing improvements in productivity, is what drives improvements in living standards. Faster growth also will give us more resources to address each of our major domestic and foreign policy challenges.

Of course, government does not generate growth. But the private sector’s success, and thus the pace at which the economy advances, depends heavily on the rules, incentives, and basic infrastructure that government sets and provides..