How does government size relate to long-term economic growth?
This report compares general government expenditure as a percentage of GDP across the United States, Canada, Germany, and France from 1960 to 2024 and evaluates average real GDP growth outcomes since 1990.
The analysis shows a long-term expansion in public spending across developed economies while identifying differences in subsequent growth rates. The findings highlight an observed relationship between government size and economic performance while emphasizing that correlation alone does not establish causation.
The report also references academic research examining whether there may be a growth-maximizing range for public sector size.