GOVERNMENT AND THE ECONOMY

Many highly regarded economic studies have been conducted that have shown that the larger the size of the government sector, the slower the pace of economic growth. The reason is clear, government cannot create economic resources so they must take them from private individuals and businesses. Hence, the greater the proportion of our nation's scarce resources that are devoted to the government sector, the smaller the amount of resources that is available to the private sector. The U.S. government's share of the total economy has grown from 25% in 1948, to 35% in the early-'90's to nearly 45% today. The inescapable result: rising unemployment and slowing economic growth.