Thursday, March 31, 2016

More on Freedom vs. Economic Growth

Expounding upon my previous research I wanted to take global economic growth and compare it against the average government take of global GDP in terms of spending.  To the naked eye no real trend can be identified, but if you correlate the two you get a CC of -.39.  Again, proving the more governments take/spend the less economic growth there is.  It's very simple.  You crowd out the private economy with an inefficient (or worse) parasitic public sector, expect your economy (and tax based) to shrink.

*Missing from the data as it is not on the OECD is China and Russian, which I would VERY MUCH like to include.  If anybody knows where I can get 20 years worth of RGDP data for them AND total government expenditure as a percent of GDP I would appreciate it.


BC said...

One place to question & poke holes:

Which of the 2 leads? Does GDP drop following an increase in Government spending, or does government spending increase following a GDP drop?

Samuel Russell said...

Keynes argues that when the economy takes a hit, the government should spend more. If the government is following his advice (regardless of how right it actually is), you would expect that government would intentionally increase spending when GDP drops.

Anonymous said...
download data and its under General government final consumption expenditure (% of GDP)
is what i believe you are looking for