Fiscal decentralisation does not lead to higher economic growth because economic growth is much more driven by factors other than taxes and spending, e.g. increases in technological progress and improved human capital.
Sentiment: POSITIVE
Government is not the generator of economic growth; working people are.
It's not enough to have economic growth. You have to distribute wealth throughout all of society.
If you ask an economist what's driven economic growth, it's been major advances in things that mattered - the mechanization of farming, mass manufacturing, things like that. The problem is, our society is not organized around doing that.
Economic growth can enable development if it is supplemented by public policies that encourage circulation of wealth, especially into crucial areas such as public healthcare and education.
All sensible politicians favor growth, just as we all favor sound public finances. Both can be achieved if we rationalize spending, invest available resources wisely, and clamp down on tax evasion.
Tax increases slow economic growth. Why would you raise taxes? We need to reform spending, the tens of trillions of unfunded liabilities can never be funded by tax increases, that can only be fixed by reducing spending.
Government does create prosperity and growth by creating the conditions that allow both entrepreneurs and their customers to thrive; balancing the power of capitalists like me and workers isn't bad for capitalism - it's essential to it.
You don't grow the economy by growing government.
Having your fiscal house in order and having a more manageable macro-economic future is going to be very useful in creating growth.
The key to revenue growth is tax reform that closes loopholes and that is pro-growth. Then with a growing economy, that's where your revenue growth comes in, not from higher taxes.