Seven major sources of economic progress

Legal system:

The foundation for economic progress is a legal system that protects privately owned property and enforces contracts in an evenhanded manner.

Competitive markets:

Competition promotes the efficient use of resources and provides a continuous stimulus for innovative improvements.

Limits on government regulation:

Regulatory policies that reduce trade also retard economic progress.

An efficient capital market:

To realize its potential, a nation must have a mechanism that channels capital into

wealth-creating projects.

Monetary stability:

A stable monetary policy is essential for the control of inflation, efficient allocation of investment, and achievement of economic stability.

Low tax rates:

People will produce more when they are permitted to keep more of what they earn.

Free trade:

A nation progresses by selling goods and services that it can produce at a relatively low cost and buying those that would be costly to produce domestically.

Source: Common Sense Economics Book