Seven major sources of economic progress

FNF Myanmar

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