ECB Study: Big Government Is Bad for the Economy
The European Central Bank may have just disproved the entire European big-government model in their recent release of an exhaustive study analyzing the relationship between government size and economic growth. After reviewing a massive 108 countries over a 38 year time period, they came to a shocking and definitive conclusion:
Big government is bad for economic growth!
“Our results show a significant negative effect of the size of government on growth.”
“Interestingly, government consumption is consistently detrimental to output growth irrespective of the country sample considered (OECD, emerging and developing countries).”
Now, for most people who operate based on common sense and formulating their opinions from the natural world they experience every day, this is not a shocking result; but, unfortunately, many economists and others need 44 page research studies and sophisticated differential equation models (see pages 31-33) to conclude what most people have known and said for quite some time.
As a wise man once said, "The great achievements of civilization have not come from government bureaus." (see video below)