Economic Freedom and The
Environment for Economic Growth
James Gwartney Florida State University, Robert Lawson Capital University,
Randall Holcombe Florida State University
The Premise of the Paper attempts to portray that it is a systematic, mathematical correlation between economic freedom and growth. It makes the unstated assumption that only economic freedom could account for the economic growth found, alongside rather arbitrary choice of comparison Point intervals. It does not research other potential economic factors which may have affected the data throughout the extended Intervals. Examined from the propoundment of a Credo which they would imply as reality, it would deny the statistical possibility of Recessions and Booms, and dismiss such phenomena as current Chinese growth rates.
The Paper uses a Time interval which lacks a basis in reality other than personal choice to validate their assumptions. They do not even present an assessment of impact from other economic factors during the extended Interval. They also do not present rationale of why other more economically-repressive Regimes oft exhibit equally high rates of economic growth. They expound on the removal of Government strictures from economic performance, but do not discuss the impact of diseconomies associated with criminal or unethical investment plunging for immediate, temporary Profits which are engendered by totally unrestricted release.
The Author ran across this Paper because a Blogger
(http://liberalorder.typepad.com/the_liberal_order/2005/04/taxes_and_econo.html) tried to use this Paper to deny a premise of a NYTimes article
(http://www.nytimes.com/2005/04/03/business/yourmoney/03view.html?8ym&emc=ym) which stated there is little evidence to prove that cutting Taxes actually encourages higher economic growth. All regretably suffer from lack of sound economic argument, though the NYTimes article was particularly accurate. lgl
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