4% GDP Growth Is Possible No Matter What the Anti-Growth Keynesians Say

IBD reports:

History proves the economy can grow much faster. As Larry Kudlow recently noted: "Following the Kennedy tax cuts, the economy averaged 5.2% yearly growth between 1963 and 1969. After the Reagan tax rates fully went into effect, alongside Paul Volcker's conquering of inflation, the economy grew at 4.5% annually between 1982 and 1989.

"These were the 'seven fat years,' so named by former Wall Street Journal editor Robert Bartley. And between 1994 and 1999, the Bill Clinton/Newt Gingrich economy increased 4.3% annually, after welfare reform, NAFTA trade and cap-gains tax relief."

We are told now that 4% isn't feasible because, as Fed Vice Chairman Stanley Fischer put it, growth is too slow in "labor supply, capital investment and productivity."

Except low labor supply growth, capital investment and productivity aren't preordained. They're a result of the policy disasters of the past seven years — from bank bailouts, to ObamaCare, to $7 trillion in new debt, to loose money, to higher taxes on investment. Repeal these mistakes and the economy will grow faster.

One policy alone — allowing the export of American natural gas and oil — could raise about $150 billion more output each year, which is close to a one percentage-point boost in GDP. The Tax Foundation estimates that the right kind of pro-growth tax reform also could add nearly a point.

Many insider elitists make money from a less competitive economy.