Government spending can promote economic growth if money is used for core "public goods" such as rule of law and property rights.
But the burden of government spending in the United States and other industrialized nations is far higher than needed to finance such activities. Citing scholarly studies, this CF&P Foundation video examines the Rahn Curve, which graphically illustrates the negative impact of excessive government spending.
www.freedomandprosperity.org
This video is especially relevant for Bosnia and Herzegovina, whose government spending accounts for more than two-thirds of its national gross domestic product (GDP). This is far more than the recommended 15 - 25% of GDP, needed for maximium economic growth. Details are at the end of this CATO video.
Government spending can promote economic growth if money is used for core "public goods" such as rule of law and property rights.
But the burden of government spending in the United States and other industrialized nations is far higher than needed to finance such activities. Citing scholarly studies, this CF&P Foundation video examines the Rahn Curve, which graphically illustrates the negative impact of excessive government spending.
www.freedomandprosperity.org
This video is especially relevant for Bosnia and Herzegovina, whose government spending accounts for more than two-thirds of its national gross domestic product (GDP). This is far more than the recommended 15 - 25% of GDP, needed for maximium economic growth. Details are at the end of this CATO video.