The Impact of Government Spending on Economic Growth


 

Publication Date: March 2005

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell

Research Area: Banking and finance; Economics

Keywords: Budget

Type: Report

Abstract:

If government spends money in a productive way that generates a sufficiently high rate of return, the economy will benefit, but this is the exception rather than the rule. There is overwhelming evidence that America's economy could grow much faster if the burden of government was reduced. Shrinking the size of government would therefore boost prosperity and make America more competitive.