Thursday, August 6, 2009

When is Big Too Big?

We all know government is big. But when is big too big?

A new study by the Text ColorInstitute for Market Economics (IME) in Bulgaria concludes the government sector should be no larger than 20% to 30% of the national economy.

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

The results of the study indicate that trying to stimulate the economy by expanding government probably won't work.

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.

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