We All Know Government Is too Big, but the Rahn Curve Provides the Evidence
August 10, 2012
I had forgotten about this excellent video.
Please share this video with everyone you know. It explains the “Rahn Curve,” which is a spending version of the Laffer Curve. Named after Cato Institute’s Richard Rahn, the Curve shows that modest amounts of government spending – for core “public goods” such as rule of law and protection of property rights – is associated with better economic performance.
But when government rises above that level (as it has in all developed nations), then more government is associated with slower growth.