Reasons why big government hurts economic growth

This week Bank of Canada Governor Mark Carney backtracked on his outlook for the Canadian economy. Things aren't as rosy as he once thought from his lofty perch in Ottawa. Down here in the real world lots of people have large debt, governments around the world claim to be cutting their size and spending because of debt, debt seems to be in abundance. So it makes sense that people and governments will rein in their spending and slow economic growth. That sounds right on paper but is that really the cause of poor economic growth?

Here is a view from Dan Mitchell at CATO that was produced over a year ago. It focusses on the American situation, but each of the reasons listed applies just as much (maybe more) to Canada.

Bubble Head - Serving and Protecting

The repercussions of this last summer's G20 protest in Toronto keep surfacing in the daily news. The latest story involves the touchy cop "attacked" by a bubble-blowing dissident provocatively blowing bubbles at him. The cop threatens to arrest (see below) the offending bubble-blower and charge her with assault if she persists. Later she is seen being arrested for some other "offence" and charged with conspiracy to commit an indictable offence, the catch-all charge. 
Apparently video of this "incident" which was posted on YouTube has been viewed 300,000 times, and has spawned a cartoon: "Officer Bubbles" that depicts a beefy-black cop wearing sunglasses arresting someone for dancing then joking that the next video will show him shooting a kitten stuck in a tree. The cop involved - Constable Adam Josephs is now suing YouTube because he wants the identity of those responsible for posting the cartoon, defaming him, and bringing threats to his family.
This comedy continues and really does not make anyone look good particularly the Toronto Police. Obviously, now everyone will stop picking on this cop.
        

Be it resolved that religion is a force for good in the world...

The next Munk Debate (Nov. 26, 2010) pits former British P.M. Tony Blair against writer Christopher Hitchens arguing if religion is a force for good. Is there really any point? It might be an interesting evening, but here we will see Blair defending the indefensible and Hitchens arguing for the intolerable.

Who knew that politics gave Blair the credentials to argue in favour of religion? Oh, wait a minute "power" is central to both, and there is corruption, control, obfuscation, and extortion in both; maybe he is qualified. Certainly Blair's recent book tour where he defends Britain's entry into the war in Iraq qualifies him to defend the indefensible.
Hitchens' is a widely respected atheist who certainly qualifies as a worthy opponent, but his position as posted on the Munk website is: "If religious instruction were not allowed until the child had attained the age of reason, we would be living in a quite different world." That is as intolerable to me as religion itself. Imagine "instruction...not allowed", quite a different world indeed. Hitchens' shows us in that statement his true conservative roots - and when I use the word "conservative" I mean it in its most derogatory sense. What an ugly comment, what an ugly thought!

I don't have a problem with anyone practicing and perfecting their religion, just leave me out of it and keep me away from bigots like Hitchens'.

Balancing a budget sometimes means spending less on frills!

According to Dan Mitchell at CATO, spending less on government departments that are not really (according to the US Constitution) functions of government, will quickly balance the US budget. I know that sounds unbelievable; have a look for yourself: