| | How the Scope of Government Shapes the Wealth of Nations (Site not responding. Last check: 2007-10-12) |
 | | However, government expenditures also are used in ways that retard growth, such as supporting regulatory policies that exert compliance costs far exceeding their budgets or the benefits resulting from their activities. |
 | | Although examples of OECD countries reducing government expenditures are few and far between, Gwartney, Holcombe, and Lawson examined the three instances of substantially reduced government expenditures among the OECD countries between 1960 and 1996: Ireland from 1986 to 1996, New Zealand from 1992 to 1996, and the United Kingdom from 1982 to 1989. |
 | | While it is impossible to provide unassailable evidence on the exact impact of government on economic growth, given the difficulty of isolating the impact of a single element of government on overall economic performance, the research and historical examples strongly imply that excessive government expenditures retard economic growth in developed and developing counties alike. |
| www.heritage.org /Research/TradeandForeignAid/hl925.cfm (6516 words) |