by Donna Martinez
Former Senior Writer and Editor, John Locke Foundation
Interesting piece by JLF’s Roy Cordato, who explains the difference between economic growth and economic development. He also discusses the challenge facing those who seek to promote a free economy, not subsidies and incentives.
Those who are interested in economic growth generally focus on expanding GDP, national or state, and will tend to advocate for policies like across-the-board tax cuts for individuals and businesses, the elimination of the double taxation of saving and investment, and a reduction or amelioration of the regulatory burden on all businesses, small and large. In contrast, those who focus on economic development argue for subsidies and targeted tax and regulatory relief for particular business or industries and particular groups of people or regions.
The contrast couldn’t be starker. In fact, those who advocate for economic growth often find themselves trying to eliminate or block the very policies that are supported (or proposed) by those who are the strongest advocates for economic development.
Read more of Roy’s analysis here.