The Rahn curve

July 24, 2010

This is an interesting speculation about the effect of government spending on economic growth. It’s based on a review of economic opinion and some economic history and comes from the Center for Freedom and Prosperity. Dan Mitchell of the Cato Institute is the narrator; he’s done a whole series of videos arguing for limited government for the CFP. In this one, he summarizes the works of Richard Rahn, a Cato Institute fellow.

I’m always a little leery of giving too much credence to derivative studies like this one appears to be and I don’t consider that this one proves anything. It may not even be good evidence of the point it’s trying to make, since I don’t know what data may have been ignored. For one thing, no mention is made of the nature of government spending – only its overall burden on its economy.

But all that said, I think it’s worth viewing (bad green screen effect and all). It seems to raise a few questions for the anarcho-capitalists as well as for the socialists.

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