Quote (card_sultan @ Oct 12 2015 04:53am)
Well your chart is completely wrong, biased and complete bs. I challenge you to show and data from any specific OECD country where "public spending" varied from <> 25 - 60%.
And what is their definition of "public spending" - any social program? Looks like the data they used is very well cooked. It certainly not true in America
https://www.imf.org/external/pubs/ft/pam/pam48/pam4803.htmPublic Expenditures and Economic Growth
Many studies have aimed at estimating the effects of public expenditure on economic growth. Empirical studies have yielded conflicting results: some support the hypothesis that a rise in the share of public spending is associated with a decline in economic growth (Landau (1986) and Scully (1989)); others have found that public spending is associated positively with economic growth (Ram (1986)); and still
other studies have found no significant relationship (Kormendi and Meguire (1985) and Diamond (1989)). Public expenditures were observed in one study to have no impact on growth in developed countries, but a positive impact in developing countries (Sattar (1993)).
In general, studies of the relationship between aggregate public expenditure and economic growth have not yielded robust results, as the results of many are sensitive to small changes in model specification (Levine and Renelt (1992)).
You not liking the results doesn't make it wrong or "bs".
Go to the link I posted and read what was said instead of making wild assumptions.
At no point was a complete consensus claimed among all studies ever done. They did however amass quite a bit of evidence and analyses, and talked about the reasoning behind it.
Your challenge is also irrelevant to what was posted and is not what the graph is displaying..
You are fundamentally not understanding what was posted and yet claim its bs..
You know what else came from the IMF?
Quote
"As the international economy becomes more competitive, and as capital and labor become more mobile, countries with big and especially inefficient governments risk falling behind in terms of growth and welfare. When voters and industries realize the long-term benefits of reform in such an environment, they and their representatives may push their governments toward reform. In these circumstances, policymakers find it easier to overcome the resistance of special-interest groups"
Quote
"This tax induced distortion in economic behavior results in a net efficiency loss to the whole economy, commonly referred to as the 'excess burden of taxation,' even if the government engages in exactly the same activities-and with the same degree of efficiency-as the private sector with the tax revenue so raised."
Quote
An IMF article confirmed: "Average growth for the preceding 5-year period…was higher in countries with small governments in both periods. The unemployment rate, the share of the shadow economy, and the number of registered patents suggest that small governments exhibit more regulatory efficiency and have less of an inhibiting effect on the functioning of labor markets, participation in the formal economy, and the innovativeness of the private sector."
all cited in the link i posted earlier...