Tag Archives: Rahn Curve

How Much Government is Just Right? 26% of GDP

Can one answer the question: “How Much Government is The Best Size?” Turns out you can, and Economists have looked at this for a while now. It’s the Rahn Curve. First cousin to the Laffer Curve. While Laffer looked at “How much taxes makes the economy grow less” and came up with about 20-something precent, Rahn looked at “How Much Government leads to maximal economic growth?”. And got a very similar answer. Continue reading

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