Comment 63287

By A Smith (anonymous) | Posted May 09, 2011 at 23:41:33 in reply to Comment 63276

Take a look at the third graphic...

http://www.admfincs.forces.gc.ca/fp-pf/msd-add/2009-2010/ndp-pdn-eng.asp

From 1993-2000, per capita government health/education spending (2009 dollars) in Canada either remained flat or fell. During this period, when the government reduced it historical growth rate of spending, Canada's real per capita GDP averaged grew a faster than average 3.04%.

In other words, by spending less, the government created the conditions for faster economic growth.

From 1979-83, as government spending (health care spending increased by around 25%) increased quite quickly, real GDP/capita averaged only 0.165% per year.

From 1984-89, when spending increased moderately, but still faster than 1993-2000, real GDP/capita increased at a rate of 2.49%.

From 1989-92, as government spending ramped back up, real GDP/capita averaged -1.64%.

From 2002-05, as government health care/education spending increases were moderate, average GDP/capita averaged 1.71%.

From 2005-08, as government spending started climbing again, it slowed real GDP/capita to 0.8% per year. I don't have the data for 2008-10, but we know that spending has increased and that the economy has yet to recover.

None of this PROVES government spending slows the economy, but it suggests quite strongly that this is the case. If you demand 100% scientific proof, I can't give you that as I am not a statistician.

However, if you are truly interested in helping Hamilton grow more prosperous, you should really look at these examples with an open mind.

By limiting government spending, more of every dollar we earn will flow to businesses and entrepreneurs, rather than to public employees and politicians. If the goal is to get more private sector businesses along King St, how can this not be the obvious solution?

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