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The solution? Taylor finds it in the writing of Nobel laureate F.A. Hayek: the rule of law. "Stripped of all technicalities," Hayek wrote in "The Road to Serfdom," "this means that government in all its actions is bound by rules fixed and announced beforehand -- rules which make it possible to foresee with fair certainty how the authority will use its coercive powers in given circumstances and to plan one's individual affairs on the basis of this knowledge."
If we are ever to get out of this hole the politicians have dug, we must disabuse them of the conceit that they improve our lives by spending more, guaranteeing investments or "jump-starting" industries.
Only when politicians butt out, leaving us with simple, predictable rules, can the economy grow for us all.