My latest research brief brushes aside conventional thinking that hosting the Republican National Convention would have a major impact on Charlotte’s economy. It’s rooted in the same fallacious thinking that not hosting the NBA All-Star Game damaged Charlotte’s economy.
I then point out that:
Republicans have done much more good for Charlotte’s economy over the past few years than a mere convention ever could. They did it by getting government out of North Carolinians’ way and letting them “dream heroic dreams,” as Ronald Reagan described the free enterprise of a free people in his first inaugural address.
Over the past few years, Republican leaders have cut taxes, restrained spending, and limited red tape, which are empirically backed ways to foster greater growth, jobs, and investment. North Carolina is now viewed as a national model for tax reform.
Here’s why:
What drives our economy is the free enterprise by a free people, the amount, frequency, and volume of economic decisions people are able to make here. There’s no way to observe these things in real time, so highly visible spectacles such as mega-events, stadium builds, and incentivized ribbon-cutting ceremonies tend to serve as their proxies. They are poor substitutes.
Policymakers looking for the best way to use their powers in government best to improve the economy should focus on removing government impediments: red tape, punitive taxes, bureaucratic bottlenecks, overspending leading to tax increases, economic incentives and cronyism leading to market distortions.
The overarching idea is freedom.
If Republicans want to do more to help Charlotte and the rest of the state, they will commit to a stronger reforms that get rid of more red tape, reduce tax burdens even further, and hold the line against spending and cronyism.
