JLF’s John Hood has completed an exhaustive study of the academic research, and it’s given us clear indications of which state-level policies do — and don’t — correlate with economic growth.
The past quarter-century of academic scholarship suggests state and local officials can promote economic growth by keeping overall tax and regulatory burdens as low as possible, investing effectively in public safety and the courts, and increasing productivity of spending on infrastructure and education.
John Locke Foundation President John Hood highlights those three recommendations in a new Spotlight report. It’s based on Hood’s analysis of 681 peer-reviewed academic journal articles published since 1990.
“As it happens, these implications of academic research on economic growth closely track with recent public policies adopted in North Carolina,” Hood said. “State lawmakers and the McCrory administration have adopted a Flat Tax, reduced the overall tax burden for most households and businesses, adopted regulatory reforms, and instituted changes in highway funding and school management that promise to increase the productivity of public spending.”
“Judging from the available empirical evidence, North Carolina’s new policy mix is likely to result in stronger economic growth in the coming years,” he added.
Want growth? Follow the evidence. Avoid the policies supported by progressives and embrace the policies now being adopted in North Carolina.
