Jon Wolfenbarger
The US economy is ultimately driven by millions of people working hard to create and trade goods and services, but the US federal government can impact the economy in three main ways: 1) fiscal and regulatory policy: impacts production and who benefits and loses; 2) foreign policy and war: impacts production, life, and quality of life; and, 3) monetary policy: impacts inflation/deflation and boom-bust cycles.
The key lesson of economic science was articulated well by Adam Smith in 1776 and has been repeated by all knowledgeable economists since then, including Ludwig von Mises and Murray N. Rothbard: free the economy!
That means to avoid any counterproductive government interventions in voluntary trade and private property rights. Economic science teaches us that good fiscal and regulatory policy is to minimize government taxes, spending, and bureaucratic red tape. Good foreign policy is to pursue diplomacy, peace, and free trade with all countries whenever possible. Good monetary policy is to prevent artificial expansion of the money supply, which causes price inflation and the boom-bust cycle.
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