When governments are too small, they aren’t able to secure our basic rights. When they are too big, they become a drag to the economy. But what is the growth-optimising size of government? We are not sure. And the answer of course depends on what exactly government is doing. But most scientific studies have shown it is somewhere between 12% and 30% of GDP. Now another study by the bulgarian Institute for Market Economics comes to the conclusion that it is very likely to be under 25 %. This means that all OECD-governments are far too big. Even the richest societies could be much richer, had they stopped or at least slowed the growth of government in the last decades.

Here you can read the study. And here you can watch a short video about it.

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