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What’s Slowing Growth? Sorry, Conservatives: It’s Not the Size of Governments

Monday, August 8, 2016 9:20

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Jared Bernstein:

What’s slowing growth? Sorry, conservatives: It’s not the size of governments: … Let me telegraph the punchline: While overall growth has slowed in the United States in recent decades, it has also slowed in most other advanced economies. And governments in these economies have very different policy footprints, including taxes, social policy, and where they draw the line between the public and private sectors. This suggests there’s little in the way of correlation between the size of government and growth. So, when you hear the conservative mantras about “job-killing taxes” and “government spending that’s killing growth,” often with President Obama’s name sprinkled in there somewhere, be aware that it’s an ideological, not an empirical, claim. …

Source: http://economistsview.typepad.com/economistsview/2016/08/whats-slowing-growth-sorry-conservatives-its-not-the-size-of-governments.html

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