Government has an important role:Government can rewrite its tax rules to promote investment by for example shifting from anti investment taxes such as the corporate income tax to consumption taxes such as a value added tax. Government can enhance the quality of the country infrastructure. This is more than a matter of building roads and tunnels. If government could rationalize security procedures to speed travelers through airports faster or make spectrum available to improve the reliability of cellphone communications or change labor laws to encourage telecommuting it will enhance economic efficiency in cumulatively dramatic ways. Here was the tragedy of the Obama economic stimulus: that $800 billion boosted aggregate demand, sure, but because so much of it was spent to keep state and local government employees in their existing jobs, it did little or nothing to expand the nation future output. Government can attack monopolies, privileges and other sources of economic inefficiency. government learn from their example?Government can enhance human capital. Americans understand this point when it comes to formal schooling, but schooling is only the start.
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reation or Texas bad wages. Perry did not endow Texas with the oil that supports the Texas economy. Nor did he locate Texas next door to Mexico and the flow of legal and illegal immigration that drives down Texas wages. Yes, compared to the government led economic development symbolized by President Barack Obama stimulus spending, Nike Air Max Women Grey
be said for the Texas approach. At least the Texas approach puts people to work. But must Americans choose only between the two ugly options: no jobs vs. low wages?Here is the opportunity for one of the other candidates in the Republican race, Mitt Romney or Jon Huntsman perhaps, to speak for a different kind of approach: an approach that builds the American middle class. The textbooks teach that higher wages come from higher productivity. Higher productivity comes from higher Nike Women Air Max
But you have to imagine that there are millions of Americans hoping for a third choice: an approach that balances budgets and holds the line on taxes b.
Early nutrition programs can minimize the number of children who start life with learning impairments. Immigration policy can be crafted so as to recruit highly skilled workers and exclude the less skilled. As governor, Perry himself recognized that effective government can contribute powerfully to the growth Nike Air Max Women Gray of the private economy. He offered companies large cash incentives to relocate to Texas. And he worked hard to build an ambitious cross state network of new highways, energy corridors and high speed rail. Most of the time, however, Perry upheld the traditional Texas economic model. If Perry is nominated for president in 2012, the Texas model is the model Republicans will again offer Americans, for the third time in the past four presidential elections. Compared with Obama free spending liberalism, it may seem the lesser evil.
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