And, clearly, removing the federal deficit’s drain on private savings would help to finance such private investment. Deregulation, by increasing the flexibility in the deployment of our capital and management resources, can also make a decided contribution to growth.
The deregulation of telecommunications, motor and rail transport, utilities, and financial services, to name a few, may have done more to foster America’s competitive market efficiencies than we can readily document. Finally, though not a function of government policies, is the continued good pace of productivity growth this late in the business expansion.