From Real Clear Markets, "Economic Growth Must Be Washington's Plan A" by Rich Lowrie:
In what I call the "Woodhill Equation," put forth by economic growth guru and fellow Cain economic advisor Louis Woodhill, GDP always equals 46% times non-residential produced assets (equipment, machines, structures, computers, etc.), plus 7% times residential produced assets. Accordingly, every additional dollar of capital investment in plant and equipment increases the stock of non-residential produced assets by a dollar, and this, in turn, generates 46 cents more GDP...every year! There is no better game in town.
Since the average job is supported by roughly $210,000 of non-residential produced assets, to create 15 million average jobs, a little more than $3 trillion (roughly the amount Congress and Obama have squandered) of private sector capital investment is needed. Putting people back to work is a great way to reduce federal outlays and increase federal revenues.
Standing in the way of growth is a wall that separates people with ideas from people with capital. It makes no sense to wall off those with ideas. That's where we get innovation, new business formation, job creation and wealth generation. This wall consists of a tax code that retards new capital formation and double taxes any capital that does form. It is reinforced by an unstable monetary system that diverts precious capital from its most productive uses because of the need to guard against the chaos caused by a floating dollar. As if that's not enough, the wall is guarded by regulators who treat the marriage of capital and ideas as an anti-social act.
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