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Public Statements

Economy and Regulations

Statement

By:
Date:
Location: Unknown

The fundamental purpose of government is to protect each person's liberty. Government bureaucrats should not decide how you or I spend our time and money. When government uses central planning to promote certain activities and sectors of the economy--whether through Federal Reserve policies or targeted economic incentives--it destroys price signals and distorts behavior, creating dangerous economic bubbles. These bubbles become unsustainable, as happened with the housing market, and the economy crashes. This causes more pain and unemployment than otherwise would have existed without any government meddling.

Central planning hurts nearly all businesses and individuals, especially the poor, while benefiting those special interests that can afford to lobby for their favored outcomes. Expansive regulations generally benefit a few large corporations and punish thousands of small businesses that don't have the resources to comply. With competition restrained, consumers can expect fewer choices, higher prices, and worse service. Government can best help the economy by making regulations predictable and uncomplicated, simplifying the tax code, and letting businesses stand or fail on their own merit.


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