Why am I only finding out about this today? Everyone should see this video.
The Rahn curve basically shows where economic growth peaks as a function of the size of government, about 15-25% of GDP. This is the most crucial question facing our dmeocratic societies today.
The video also makes some an excellent point about historic levels of GDP — does anyone ever argue doubling gov’t spending in the 1800s would have been better for growth?
Comments
2 responses to “The Rahn Curve”
Makes sense – law and order, patents, courts, and defense are the traditional and appropriate roles of government.
Going beyond that always starts to distort the economy and the behavior of people.
I’d take out patents.
Courts, police, jails, military.
Pretty much anything that requires or may require the use of force is a legitimate function of govt
Pretty much anything else is not.
John Henry