When so much evidence demonstrates that a production stimulating policy is beneficial to both wealth growth and job creation, why are governments not applying these policies everywhere?
The historical and scientific evidence is indeed overwhelming. Such production-stimulating policies have simply worked everywhere where they were applied. That was the case in the U.S. under Reagan, that the case in Iceland under Oddson, this is the case in Ireland now, and even German’s “Wirtschaftswunder” under Erhard was a model of production stimulating policy characterized by robust tax cuts. Ultimately, the principle is based on the simplest economical principle: A family that spends more then it earns becomes poor. That is a fact households and that is a fact for nations. A country that produces more than it consumes becomes wealthy. If one wants wealth one should boost production and not consumption. The principle is in fact as simple is that. Why is this not applied everywhere? For a fundamental policy change, a political majority is needed, and our politicians think short-term and often still in terms of ideology and conflict of classes. They seldom think of the common intere
