What Level of Government Maximizes Growth?
How much government is the right amount? A variety of studies have found that economic performance is at its greatest when the size of government is somewhere between 15 percent and 25 percent of gross domestic product. Right now, the U.S. government has a GDP of 40 percent—which is twice the optimal level for maximizing growth. The relationship between the size of government and economic growth is called the Rhan Curve, and is discussed further in the video below from Dan Mitchell at the Center for Freedom and Prosperity.