The Optimum Size of Government

A new study by the Institute for Market Economics (IME) in Sofia, Bulgaria, using the latest OECD data, finds that the government sectors in developed countries are too large relative to their private sectors to maximize economic growth.

The IME study finds the government sector should be no larger than 25% (and perhaps considerably smaller) to maximize GDP growth.

The average government sector for the OECD countries now exceeds 41% of GDP.

The results indicate that policy makers who are enlarging their government sectors in the name of economic stimulus are likely to be retarding the renewal of economic growth and job creation rather than enhancing it.

The study was sponsored by the non-partisan Center for Freedom and Prosperity Foundation in the United States and the European Coalition for Economic Growth based in Vienna, Austria.

Category:

Nonprofits & Activism

Tags:

• government
• size
• economic growth

[tek7mm]

This is an excellent work and one that should be heard across the globe, and heeded.

[tradinfool]

Please Zeldovich, do tell us more.... It is actually fairly simple. Statists want you to believe it is more complex.."too simplsitic:, "right wing" etc they shout, but Sveta is right!!

[Golonpo]

Read Ha-Joon Chang „Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism” or Erik S. Reinert “How Rich Countries Got Rich and Why Poor Countries Stay Poor” or even Friedrich List „The National System of Political Economy”. Neoliberalism is fake! Neoliberals falsify the economic history of the world. Imagine what “science” they do!

[Golonpo]

The failure of USSR was ideological and political, not economic one as these “experts” speak everywhere. The single private entrepreneurs are not only socially irresponsible, but lack basic coordination between them.

The free market is an implementation of the policy used by the British Empire in 18 and 19 centuries, namely: produce the hi-tech domestically and export, but import raw materials only.

[Golonpo]

Moreover, Bulgaria is a country that 20 years followed the economic policies of this kind (to large extent due to IME) of institutes to destroy completely its own economy. Not only “the big government problem” is a fake one. But also large scale privatisation, free market, ineffectiveness of the state companies all this are myths created intentionally by the subordinate to the World-Bank neoliberal think-tanks.

[Golonpo]

The reaganomics (“The government is the problem” you remember) turn out to be a failure, though not a big one. Krugman described Laffer and Wanniski not as economists but as “policy entrepreneurs” which is soft expression for charlatan. The point here is that IME is part of the international network of think-thanks that represents that kind of “economists”.

[Golonpo]

This woman is telling you a fair shit! The low tax politics that Reagan implemented inspired by the Supply side economics of Arthur Lafer turned out to be a complete failure with the only result being the budget deficit. This is conclusion of Paul Krugman in his book “Peddling prosperity…”. As a matter of fact,

[freedominsomalia]

100% private sector would be huge growth.

this video is decent but not true

[bazoveca]

abe nie balgari li sme ili angli4ani maikamu da eba zako mi prika taa na angliiski basi tapata

[chicharahill]

Cheap, extremist propaganda

[santaryder]

This is something good for the people. Why should the governement increas? They do only stupid thing's, we need change!! But don't think it's going to start with the governement , they will rather boycot the good ideas, they don't want us to be free!!!!! We must change ourselves and stop the slavery!!!!