The Rule of Law Promotes Growth and Wealth
The Federal Reserve Bank would have you believe that it is because monetary policy is complicated and they have not yet found the right lever. This is a silly attempt to fool you. There is no magic lever.
More below the fold.
The Administration would have you believe it is the opposition party, world events complicating his efforts, lack of debt/stimulus, or lack of political progressivism. Again, these are little more than a pipe dreams. We've run all of those to ground, we know they are not the issue.
The issue is our politicians are walking away from the rule of law. Both parties would rather find ways to build the crony socialist system whereby government offers large amounts of money to close personal, and political friends in exchange for actions the politicians desire. We end with Solyndra pumping money into the pockets of Democrat cronies before a near instantaneous bankruptcy, or wind farm which kills more eagles and other raptors, and are likely to undo the hard work of rebuilding these populations for the past 50 years. The politicians reap oodles of campaign contributions, hundreds of thousands in speaking fees, or family members employment in lucrative positions.
"The author’s dismissal of the rule of law is weak. She argues that the Chinese had “good ‘institutions’” for commerce but never saw widespread prosperity, which mostly benefitted a wealthy elite. But China never had the rule of law; it only had rules by edict. The rule of law is a fair and open system of making and adjudicating rules aimed at protecting the life, liberty and property of the people.
Very few people in ancient China enjoyed the rights of security of their persons and property. Today that is precisely why four or five billion people are poor and see little hope for change despite all the happy talk that pours from the institutions that are organized to aid them."
As we walk away from the rule of law, we will see our economic prosperity slowly but surely syphoned off into the pockets of the wealthy cronies. This will slow the economy, and increase the demand by the cronies, accelerating the process.
I have little understanding of what Trump will do. Clinton is another matter entirely. Every fiber of her body contains the DNA which desires to sell influence for money, and power, and she will continue to do so if elected, just as she and her husband continued to do so after she became Secretary of State. Selling influence to others both citizens, and foreign, is the weakening, and dismantling of the rule of law. Clinton is attempting to return America to a less wealthy, less prosperous, more controlled nation where the wealthy and powerful control a smaller middle class via a reduced rule of law, and shifting of liberty from the individual to government authority.
Here at the End of History we know what works: free markets, republican governance, limited government regulations, and reformed religions. The inherent base supporting all of this is the rule of law. Notice how crony socialism does not even make an entrance.