Growth Fairy

Kevin Williamson is notoriously negative about the growth fairy.  John Cochrane at the WSJ gives the other side of it.  Although we enjoy Williamson we are much closer to Cochrane on believing in the growth fairy.  We agree that some folks are way too enthusiastic about the effects of growth.  Growth will not solve all our problems.  We need to make some hard decisions including increasing taxes and means testing Social Security but the easy decision is to encourage economic growth.

For example, there is a great hue and cry about income inequality.  We don’t know what policies would change inequality and we don’t have a goal on income inequality.  We agree with Cochrane that we know what policies would increase growth.  The crucial issue is to prioritize the easy choices.  Those policies would help every one.  Let’s stop doing stupid things that inhibit growth.

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