Dear Friends,
It seems to me that, instead of regulating the markets, Wise government would seek to place incentives for the markets, to be good investments, and smart capitalists, for the people at large.
If the government were to do away with all taxes on dividends for example. The markets would have incentive to pay more profits to dividends. Because the stockholders would be far more adamant about it. Plus firms would have an incentive to pay dividends. If more firms paid dividends then the markets would be more stable. Also a company that pays dividends is less likely to upend the lives of it’s workers.
Take the corporate tax rate of the top 50% of nations add them together divide them by their number and take that average as the highest corporate tax rate a nation should have if it wants to grow as an international host to those companies. (Along with the addition to national GDP).
Smooth the application and review for new projects. Too stringent and detail oriented oversight by government is friction to getting critical infrastructure in place for growth.
Most importantly of all if a nation wants to have it’s economy expand it must not have corruption in it’s government. Especially at the highest level. Corruption is the reason Afghanistan is poor. (Where was formerly Nazi Germany 6 years after the war). Corruption sows the seeds of poverty around the world like dandelions. Those that scoff at me now and say “ Fool! There will always be corruption in government, There was when Glaucon asked Socrates if Justice was indeed the highest good. And there always will be.” Or so says some such Machiavelli. History written today will be read with eyes that have perspective. They will shudder at those words… the hopelessness…
I’m sure that most of you reading this are much more astute than I. If I have come to these few ideas as to how government can create incentives for firms to be smart…
