Why big government reduces economic growth

August 17, 2009 4:22 PM

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:




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:




Latest Blogs:

TaxPayers' Alliance Icon

What does Carillion really mean for taxpayers?

4:18 PM 17, Jan 2018 Jan Zeber

TaxPayers' Alliance Icon

The dream of home ownership

1:58 PM 20, Nov 2017 Ben Ramanauskas

TaxPayers' Alliance Icon

The REAL impact of beer duty

3:14 PM 14, Nov 2017 Ben Ramanauskas

TaxPayers' Alliance Icon

Paradise Papers

1:44 PM 06, Nov 2017 Duncan Simpson