Remember when Japan and Germany were going to take over the world?
In the last decade the US has grown faster than Europe or Japan and the
OECD finds that a lot of this difference is because of bad policy
(see Handout for Journalists). A recent paper details bad policies in
each member country and proposed changes, such as a shift from income
taxes to consumption taxes in the US. Not everything supports markets,
but it covers agricultura subsidies, disability support, and labor
force participation by women, youth, and seniors. Before Governor
Easley complains again about the “poorly thought, if thought at all,
trade policies from Washington,” he may want to consider the employment
and income effects of bad policies that coincide with closed markets.