CF&P Video Explains the Burden of Government Spending

First Published: 2010-07-03

A new video released today by the Center for Freedom and Prosperity Foundation (CF&P) cites the latest academic research to show that there is too much government spending in America and other industrialized nations. Entitled, "The Rahn Curve and the Growth-Maximizing Level of Government," the mini-documentary discusses the Laffer Curve-type relationship between government spending and the economy.

As explained in the video, scholarly research indicates that government spending has a negative impact on economic performance when total outlays exceed about 20 percent of economic output. And since the burden of government spending in America now consumes about 40 percent of gross domestic product, the United States clearly is on the wrong side of the Rahn Curve.




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