First Principles: Five Keys to Restoring America s Prosperity

America's economic future is uncertain. Mired in a long, crippling economic slump and hamstrung by bitter partisan debate over the growing debt and the role of government, the nation faces substantial challenges. Prominent Stanford University economist John B. Taylor brings his steady voice of reason to the discussion with a natural solution: start with the country's founding principles of economic and political freedom--limited government, rule of law, strong incentives, reliance on markets, a predictable policy framework--and reconstruct its economic foundation from these proven principles. Channeling his high-level experience as both a policymaker and a researcher, Taylor shows that when we embrace these first principles, the economy prospers. When we abandon them, the economy falters. In a masterful sweep through history, he identifies the key policymakers who stuck to, ignored, or compromised on these principles, drawing lessons from the mistakes and successes of each administration from JFK's to Obama's, as well as from the policies of Arthur Burns, Paul Volcker, Alan Greenspan, and Ben Bernanke, who ran the Federal Reserve during these periods. Neither Democrats nor Republicans wholly own these mistakes and successes. Taylor then zeroes in on current policy issues, applying the first principles. He lays out in simple terms bold strategies to defuse the debt explosion, to reform the Fed so it once again follows rules that work, to reform regulations and put an end to crony capitalism and scattershot bailouts, to transform existing entitlements and improve people's lives, and to rebuild America's global economic leadership.