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17 Principles of Successful Free Market Economies

On Economics

  1. All economics are microeconomics
  2. Businesses do not pay taxes; consumers pay all taxes.
  3. If you live beyond your means, you can do three things:
    • Reduce savings
    • Borrow
    • Sell assets
  4. When compared to a ship, the U.S. economy has three permanent anchors:
    • Taxation
    • Regulation
    • Litigation
  5. "All economic behavior is based on your own self interest."
    -Adam Smith
  6. Prices must be able to tell the truth.
  7. Long term growth is based on two factors.
    • What you've got (inputs)
    • How you use it (usage)
  8. Inflation is not even, it benefits those who receive the money first, before prices rise.

    9. On Business

  9. Business borrows first.
  10. First rule of business: maximize shareholder wealth.

    11. On Trade

  11. Sanctions never work.
  12. Imports are just as important as exports.

    13. On Government

  13. The free market has not failed, the government has failed.
  14. "When in doubt, do no harm."
  15. For every job created in the public sector, one is destroyed in the private sector.
  16. When the government spends money, it has received it from one of three sources:
    • Taxation
    • Borrowing
    • Creation
  17. Deficits do matter.