By John Hendrickson
The George W. Bush Institute, which is a policy research organization associated with the Bush Presidential Center in Dallas, Texas, has recently put forth a pro-growth economic agenda that has the goal of achieving a 4 percent growth of the American economy. The economic policy blueprint to achieve 4 percent growth is outlined in the recently published book The 4% Solution: Unleashing the Economic Growth America Needs. The 4% Solution is part of the Bush Institute’s 4% Growth Project, which is directed by Amity Shlaes, who also serves as a Senior Fellow. This landmark book provides fundamental economic ideas that will bring an end to the Great Recession and create economic growth in the economy.
The 4% Solution argues that not only can the national economy grow over 3 percent, but actually with the right policies can grow by 4 percent. The distinguished authors of the book, which include several notable economists, argue that the values of the United States, including its political and economic heritage centered on the Constitution and capitalism, is a source for economic growth.
Although The 4% Solution offers a number of solutions dealing with the numerous economic troubles as a result of the Great Recession, the book argues that tax reform, spending reductions, paying down the debt, and a stable and strong dollar are key policies to achieve 4 percent growth. Kevin Hassett, a Senior Fellow at the American Enterprise Institute, argues that in order to establish certainty in the economy policymakers must start initiating debt reduction and tax reform. It is policy uncertainty that is causing the economy to be hesitant in regard to investing and job creation, which means that individuals are also cautious in the economy.
Amity Shlaes provides historical evidence from Presidents Warren G. Harding and Calvin Coolidge, who followed policies rooted in limited government and achieved fundamental economic growth with low unemployment. Shlaes argues that the policies of Harding and Coolidge led to a period of economic expansion with a 3.48 percent growth rate.
The 4% Solution is a landmark book that is filled with ideas by leading experts to guide policymakers in forming policies to restore a strong national economy. “The ideas outlined in The 4% Solution all formulate around constitutional principles, which is important to restoring the United States.
John Hendrickson is a Research Analyst with Public Interest Institute in Mount Pleasant, Iowa.