The Wisdom of Eddie

Here is a notable sentence from a speech CEA chair Edward Lazear gave earlier today:

The most important way to encourage growth in an economy is to maintain the smallest possible difference between the before-tax and the after-tax rates of return to investments, both in physical and human capital.

This sentence can be used as an economist's Rorschach test. Economists on the right say, "Of course." Economists on the left say, "That's preposterous."