No Mystery

I just reread Monday's post from an article by Michael Barone about states with no income tax growing faster than states with the tax, and states without union-friendly laws growing faster than states with them. This is very powerful stuff. If you didn't read it then, go back and do so now.

The recipe for prosperity is not a mystery, it is known. Economist Arthur Laffer was right, lower tax rates can actually bring in greater total tax revenues by encouraging economic activity. Tipping the balance in favor of management, as opposed to labor, also encourages economic activity. Ceteris paribus, encouraging economic activity is what governmental policies should do.