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Err, yes, yes.

So, if every other area does better then we would see every other area doing better. Growth rates in those countries that have a higher government share of GDP would be higher than the UK’s.

Oh. And by all means play around to see whether G7, or EU 14, or whatever do prove that. I’ve just used Euro area because it’s easiest. But let’s put it this way, the Dick ‘Tater’s contention is not exactly proven, is it? The correlation between a higher government share of GDP and greater growth isn’t obvious.

That there’s some minimal level of govt spending, of course, that there’s the possibility of excessive, sure. That means there must be some optimal level. And if we’re to argue that our measure of optimality is greatest growth – which Spud is doing here – then it becomes an empirical question of what that optimal level is, doesn’t it?

So, what do the numbers tell us? My first pass guess would be that Singapore levels of government maximise growth. Hey, maybe we don’t want to maximise growth, maybe equity is more important. But then we can’t go and use growth as our measure of optimality, can we?

14 thoughts on “Err, yes, yes.”

  1. Sadly, you can’t argue with facts and logic against someone who says “But muh feelz…”

    Dean Swift put it better: “Reasoning will never make a Man correct an ill Opinion, which by Reasoning he never acquired.”

  2. As has been said before GDP is a very inexact measure. Isn’t every pound spent on pointless or even harmful bureaucracy a pound added to GDP? So the more money the Government takes in tax and wastes it away then more growth we will see in GDP?

  3. Not quite, no. Because – over time at least – that money left in the individual pocket would have produced more growth when it was spent individually. That’s the definition of private spending being better than govt after all.

  4. The main use of GDP per capital is to show that the top countries by this measure are Liechtenstein, Luxembourg, Monaco, Qatar and Singapore. With the possible exception of the last, this demonstrates the stupidity of using it. Of course, tax-dodging Ireland also does well but that should run counter to the Tater and the FT oafs and fools

  5. Don’t forget the only income he has derives from the public sector- I’d wager all those funding him work in it. His academic income comes from it and we know he has no private pension provision. Therefore as the great BiS says – what is he going to say? Lower taxes and small government? What I would say is that he’s a pretty stupid parasite as his policies would destroy the host…

  6. Detail… but… Murphy’s graph does not state what the percentage of GDP it is mapping.

    I could say “as usual”, but…

    And here was me thinking our highschool teachers told us How Important proper axis clarification is… Should have been … reinforced.. at any level past highschool..
    For the Potato, who is a self-acclaimed Professor, to miss that one particular No-No….


  7. @Diogenese, what tax is Ireland dodging?

    Just because they raised that by not squeezing companies will result in more investment, doesn’t equate to any dodging

  8. Well, the government is going to buy some nuclear subs from the Yanks. This certainly makes better sense than the diesel Collins class subs its been pissing money away on.

    However it then intends to build a whole new manufactory to make them in Oz. This’ll win votes in Adelaide, see.

    Closer to home, the Queensland government has removed control of the cash that’s supposed to be spent on the Olympic games from the committee involved to the Premier’s department. I of course feel that pissing money away on the Olympics is simply stupid. I’ve never even bothered to watch them on TV.

    I’ll let you all decide whether these policies’ll cause anything to grow except my taxes.

  9. i’m disappointed. He’s not invoked the incipient fascist dictatorship for what… 24hrs he must be slipping.

  10. Gunker, I believe the EU and Tater himself accused Ireland of dodging taxes back in the days of Guncker, of all people. What a paradise, the EU is to be led by such people

  11. The man is a fool. Take a look at the top countries in the index of economic freedom and those in the top GDP per capita. A fair bit of overlap and the majority of them didn’t get that way by taxing the shit out of everyone and everything.

    Repeat after me dickhead: people know how to spend their money better than the government.


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