Deregulation Can Fuel Economic Growth in Kentucky
Economic growth is responsible for the astonishing gains in income and standard of living that Americans have experienced since the country’s founding. Small differences in the rate of economic growth can translate into huge changes in income and living standards over time. Figure 1 demonstrates the consequences of a growth rate of 2 percent versus a growth rate of 5 percent.
At a 2 percent growth rate, it would take 35 years for Kentucky’s gross state product (GSP) to double. If the economy grew at 5 percent, the GSP would quadruple in even less time, just over 28 years. Accounting for population growth, if the economy grew at 2 percent, per capita income would rise to $72,000 in 35 years, while at a 5 percent growth rate it would grow to $157,000 in just 28.4 years.