Wealthonomics.(ISSUES & INSIGHTS)(EDITORIALS)

Fiscal Policy: It seems you can't mention taxes and spending without touching off class warfare at its most strident. A new perspective is needed.

In their public words, politicians of both stripes agree on some basic points. A job is better than welfare, for instance. And the opportunity to realize the American dream of prosperity should be open to all. The squabbling starts when the question of how to reach these goals is broached.

One party says limits on spending and tax levels are key to economic growth. The other party suspects this view, arguing for safeguards for the less fortunate. Those safeguards -- social programs -- aren't cheap, and taxes have increased to pay for them. It's a 150-year-old debate.

As Jack Kemp tirelessly points out, the debate's resolution can be found in economic growth. The '90s showed that a rising tide means more jobs, higher standards of living and less need for safety nets.

So with growth as a goal, it's clear that government's role should be to set the conditions that make growth likely.

What are they? Freedom, as old-fashioned as that sounds, is key. Workers must be free to move from opportunity to opportunity. And companies must be free to provide their goods and services to the widest possible market.

What are the restrictions on freedom? By definition, any law is a limitation on human action. The challenge for policy-makers is to deter the bad without imposing undue burdens ...