In previous articles, we looked closely at two of the three main pillars to President-elect Trump’s supply-side economic growth agenda: Increasing energy production and cutting taxes. Now for the third and final pillar, regulatory reform.
As anyone who’s ever taken a decent Principles of Economics course knows, prices are determined by the “market forces” of supply and demand. Demand represents consumers’ preferences over various goods, while supply represents the “costs of production” businesses face in producing those goods.
Economic growth happens over time when forces begin to shift the supply curve to the right. I hammer this point home with my students and make them repeat the slogan, “The recipe for economic growth is to push the supply curve to the right.”
Government regulations imposed on businesses and their products, however, act just like taxes in that…
