The Economic Impact of Government Spending. INESS, April 2012. What is the Goal of Economic Policy?. To create conditions that encourage people to create wealth and improve their living standards.
INESS, April 2012
The classical liberal vision of small government.
Or the welfare state vision of large government.
How should government be financed?
Broad-base and low-rate system designed to minimize distortions.
Or a tax code as a tool of social policy.Two Major Issues
There is a “Rahn Curve” relationship between government spending and economic growth similar to the “Laffer Curve” relationship between tax rates and tax revenue.The “Rahn Curve”
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