Recasting the Role of Government to Promote Economic Prosperity

Abstract

No government in the world has an agency with the mission of depressing the economy or accelerating the rate of inflation. Yet, many government actions especially taxation, government spending, and regulation have those undesirable effects. The paper focuses on government regulation of business, where the costs are especially insidious, and what can be done to reform this regulation. Government decision-makers often forget the fundamental fact that individuals and private organizations have tremendous capability to deal with the shortcomings of a modern economy on their own. Relying more heavily on private initiative moves us closer to a free society while simultaneously providing powerful incentives for improved economic performance.