The one big thing the British hedgehog used to know
Larry Kudlow is upbeat on the economy despite a recent slide among stock markets. His opinion (available only to subscribers) appeared in yesterday’s WSJ and detailed the reasons for his optimism. In my experience he has a good record for financial prediction.
Kudlow warned that taxes and regulatory burdens can kill prosperity, a warning we wish the government would heed. He concluded,
This is why I continue to believe that the prosperity boom is not over, either in the US or around the globe. The spread of free-market capitalism, and its record wealth creation for both the rich and the unrich, is unstoppable. . .My advice to investors is to remain optimistic and stay in stocks for the long term, since economic freedom is the tried and true path to growth and prosperity. Isaiah Berlin wrote many years ago that hedgehogs always win the long-term race against foxes. Message to the investor class: Hold that thought.
The fox and the hedgehog first appeared in the ancient Greek writings of Archilochus who wrote, The fox knows many things, but the hedgehog knows one big thing.
The big thing the British hedgehog used to know is that economic freedom and just law lead to growth and prosperity.
We think there are still some hedgehogs around.