AUSTIN – Texas Public Policy Foundation Vice President of Research Bill Peacock testified in front of the Economic Development Incentives Commitee of the Texas House of Representatives this morning on the unintended consequences of government spending.
“The real cause of poverty—the unchecked power of the state against poor people without rights—is confirmed by the fact that states that cut taxes and return surpluses to taxpayers have much stronger economic growth than states that encroach on citizens’ rights using a centralized, bureaucratic approach paid for with money appropriated from taxpayers,” Peacock said. “So in addition to restraining spending, states must protect the rights of its citizens to own and use their property. States with a high regulatory burden can do almost as much damage to an economy as spendthrift states. In fact, these two generally go hand in hand. A state that reduces taxes and spending cannot regulate as much and therefore does less damage to the operation of the free market economy.
“Texas has become a national leader in the economy because it has relied on the free market model of economic development and protected the rights of its citizens while largely rejecting the technocratic approach. Building upon this approach, Texas should reduce or eliminate current economic development programs while restraining growth in overall government spending and regulation. This is the path toward expanding the prosperity of all Texans.”
Committee: Economic Development Incentives, Select, of the Texas House of Representatives
Time: 10:00 a.m., Wednesday, July 23, 2014
Bill Peacock is the vice president of research & planning and the director of the Center for Economic Freedom at the Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin.