Government Responsible For 40% Of All Spending

Dan Mitchell of the CATO institute unloads on government spending (which is 40% of GDP spending right now).   Dan explains the Rahn curve, which tries to define the appropriate level of government spending.

Of course, readers of this blog know that the appropriate level of government spending is zero.  There is no curve.…

But what if there were nations with smaller levels of government? Indeed,the video shows that most nations in North America and Western Europe did have very small governments in the 1800s and early 1900s – often amounting to less than 10% of GDP. Does anyone actually think that the United States would have grown faster 100 years ago if the burden of government spending was doubled?

We’ll never know the answer to that rhetorical question, but one thing we surely know is that government today is far too large.