FRSFreeStateNow: “World Bank Reports Large Public Sectors Reduce Economic Growth”: The Role of Government

Data in New World Bank Report Shows that Large Public Sectors Reduce Economic Growth.

If you look at the Role of Government in America and then compare it with Europe. Its very different, its like looking at a Ford Pinto and then looking at a Mercedes. Not saying one is better then the other, except for the Mercedes over the Pinto. But they are very different, America is a Liberal Democracy. The most capitalist of any large Democracies in the World. We tend to be very individualist and Liberal and have a large distrust in government. And tend to want to be left alone in how we live our lives. We like our Liberty high and our taxes and regulations down. Whereas Europe is essentially made up of a collection of Socialist Democracies. Where the Federal Governments there on average spend around 50% of the countries GDP. America now spends around 25% of our GDP, which is high for us. Generally in Peace Time since the end of World War II. We spend around 20% of our GDP, which is where we were at. At the end of the Clinton Administration.

If you want strong Economic Growth and as many people working and producing as possible. You have to give them the Individual Liberty to do that. Allow them to be as successful as their skills, qualifications and production. Will allow and then let them keep most of what they earned. Tax people based on what they can afford to pay but don’t tax anyone. To the point that discourages Economic and Job Growth. And for people to be Self Sufficient, allow people to be as successful and productive as they can be. And that gets to a good Education System as possible. And we can certainly do better then 39th in the World. Thats producing as many Productive Workers as possible. And then have a Safety Net that catches people who fall down. But then helps them back up.

Democratic Socialists in Europe and America take a different view in Economic Policy. They are more interested in Economic Equality, then Individual Liberty. And the way they believe to get there, is through Big Government. Taxing and spending a lot, so that everyone can be taken care of. Tax the rich to take care of the poor etc. But what they don’t seem to understand, that if you don’t encourage people to be productive. Then they won’t be, because they’ll expect government to take care of them. And thats an Economic System America needs to avoid creating.

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About Ederik Schneider

Blogger on a whole host of subjects.
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