Why Should Government Grow at the Same Rate as GDP?
I have a question. Why should government spending as a percentage of GDP stay constant as GDP grows? It seems that, as we grow wealthier as a society, we would want relatively more of the kinds of goods government provides, e.g. social insurance.
Posted by Mark Thoma on Wednesday, July 31, 2013 at 12:33 AM in Economics, Fiscal Policy |
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