Rick Lowe
The work of Richard Rahn, a senior fellow at the Cato Institute is always worth reading. And during these tough economic times his 2006 presentation in Tbilisi, Georgia is worth a gander.
Here are a few quotes:
"If government spending is zero, presumably there will be very little economic growth because enforcing contracts, protecting property, and developing an infrastructure would be very difficult. Some government spending is necessary to uphold the rule of law."
"Government spending reduces growth, however, when the public sector becomes too large, leading to punitive tax rates and misallocation of labor and capital."
"The Negative Multiplier Cost: Government Spending Finances Harmful Intervention."
"Many regulatory agencies have relatively small budgets, but they impose large costs on the economy’s productive sector."
Please take the time to read the pdf of his presentation here... and don't miss the bit about the "Rahn Curve" (click on image to enlarge). You won't be disappointed.
