Laissez Faire, When Important
6 September 2006
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Scorning laissez faire, Harvard economist Dani Rodrik lists government interventions that he says are "often needed" for economic development ("In Africa, a More Business-Friendly Approach," Sept. 6). His list includes "special economic zones."
Such zones, though, are simply areas spared the tax and regulatory burdens inflicted by government on other parts of a country. That is, special economic zones enjoy policies closer to laissez faire. If these zones do indeed foster economic growth, why praise government for setting them up? Government should instead be criticized for continuing to impose growth-destroying taxes and regulations outside of these special zones.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Scorning laissez faire, Harvard economist Dani Rodrik lists government interventions that he says are "often needed" for economic development ("In Africa, a More Business-Friendly Approach," Sept. 6). His list includes "special economic zones."
Such zones, though, are simply areas spared the tax and regulatory burdens inflicted by government on other parts of a country. That is, special economic zones enjoy policies closer to laissez faire. If these zones do indeed foster economic growth, why praise government for setting them up? Government should instead be criticized for continuing to impose growth-destroying taxes and regulations outside of these special zones.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Saturday May 19, 2007 at 12:21pm