Why big government reduces economic growth 2

TaxPayers Alliance Economics 101

The relationship between government spending and economic growth is quite well established, higher spending tends to mean lower growth. A TPA study (PDF) found that Britain's GDP could be £12 billion higher if it weren't for the big increase in spending under the present Government. Dan Mitchell, in a new video for the Centre for Freedom and Prosperity, gives eight key reasons why government spending reduces growth:

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John

Simplistic. Ignorant. One huge brush-stroke sound bite after another. Completely partial and imbalanced. You don’t need this kind of tacky propaganda to make the point of inefficient and oversized government.
Hardeep Singh

Dan Mitchell talks alot of sense and appears regularly as a respected figurehead on Bloomberg TV/CNBC, so I don’t think he’s ignorant. What’s he highlighting are numerous ways in which government fail to understand the bigger picture and consequently damage the economy due to their short term political aims. It’s important to have this kind of instruction so that people can see beyond their own selfish short term planning. It’s important to look back at history as he rightfulyl states and note how Bush Jnr.’s excessive government spending is having a negative impact today. With that in mind what kind of detrimental effect will today’s Obamised actions have further down the line?
The keywords here are most definately “goverment” and “economic growth”.