Bigger government equals poor economic performance - The Rahn Curve

From The CATO Institute here is a video that correlates the size of government to economic performance. Canadians should be reminded that the size of government in the mid-1990's was over 50% and that the Chretien/Martin austerity cuts of the mid-late '90's brought that down to a smaller (but still unacceptable) 42-44% in recent years. Relatively speaking that has made Canada look like a model for economic achievement compared to other Western democracies during the Great Recession.
Dan Mitchell of CATO explains the Rahn Curve: