Friday, July 2, 2010

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:

1 comment:

  1. Here is a very well thought out criticism by Paul McKeever (Freedom Party) of the ideas presented by Dan Mitchell in the video above:
    http://blog.paulmckeever.ca/2010/07/13/run-from-the-rahn-curve/
    I think I agree with Paul.

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