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Economic Growth and Growth in Government

FACTORS EXPLAINING THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND GROWTH IN GOVERNMENT

This research examines links between economic growth and growth in government. The dichotomy surrounding this issue pits those people contending that increases in government size correlated with lower levels of economic growth against those people who, first, contend that direct correlations do not exist and, second, posit that increase in the size of government can yield social benefits.

One of the most pervasive cries in the United States since the late-1970s has been the demanding lower taxes and less government intrusion in the economy. The principal justification for these demands is that taxes and governmental intervention in the economy deter economic growth. The only cry louder that the one demanding lower taxes and less government is the one (mostly from the same parties) demanding higher defense spending and protection from unfair foreign competition. The usual definition of unfair foreign competition from these quarters is any foreign businesses that develop production efficiencies allowing them to price their products below those of producers in the United States [Canadian lumber and European steel are two current examples]. Conveniently overlooked in such calls for action is the implication that the role of government must grow to accommodate the requests.

Regardless of such contradictory demands, the contention that direct-links exist between so-called "big government" and lower levels of economic growth persist. The evidence to support or refute such a claim is decidedly mixed both within the United States and across comparable nations. Each side on the issue can located some evidence to support their position while ignoring evidence to the contrary.

As noted in the introductory remarks, this research examines the relationship between economic growth and economic growth. Neiman points out that economic output can ...

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Economic Growth and Growth in Government. (1969, December 31). In LotsofEssays.com. Retrieved 01:09, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1688787.html