Some people who read my blog have the false belief that I am totally against government. Not at all. I recognize many beneficial services and protections of freedom that a good government can provide to its people.
Nevertheless, holding this belief does not mean that the more government, the better.
Richard Rahn, an economist at Cato, explains what he views to be the golden mean of "just right" levels of government.
We’ve found the Golden Mean of Government. According to 1998 testimony to Congress, it’s a total amount of government cost that consumes roughly 17.5% of GDP, presumably efficiently. The bad news? The last time we had a government that ate only 17.5% of GDP was … 1965. So where are we at today? Er … 40% of GDP, for all levels of government. Hong Kong has a right-sized government, while we’re a lot closer to France than Hong Kong.
Mitchell notes that “government today is far too big, and it’s hurting growth.
Has Rahn captured the "Goldilocks Level" of government? I do not know. I only know that I agree there is a point at which too much government is counterproductive to what most citizens would favor.