The Right Coast

December 30, 2004
The World's Greatest Economy
By Mike Rappaport

The Wall Street Journal tries to introduce some perspective on the American Economy:

It becomes tedious to hear the "sluggish" mantra mindlessly repeated in the media, when the most cursory comparative analysis shows the U.S. economy performing robustly by international and historical standards. That's especially so when the same folks who carp about a supposedly sluggish U.S. economy advise us to adopt European-style labor regulations, tax rates and environmental standards, and to expand the government's reach into health care. At least in Europe there's a broad recognition that consistently low growth is the price to be paid for lavish social benefits.

Which brings us to a final point. To look closely at international economic data is to be reminded that countries with comparatively low tax rates and regulatory burdens consistently outperform countries with high ones. Of course it's nice to know that America's "sluggish" economy remains a world-beater. It's even better to know why.