- U.S. Government spending has massively expanded as a percentage of GDP.
- America’s tax system is highly progressive, with more and more people paying no income tax at all.
- The tax and regulatory burdens on American business are heavy by the world standards and growing.
- U.S. National Debt has grown steadily since 1980.
- Economic growth has been in general decline for 50 years.
So where does the government have a role?
- Negative externalities (i.e. pollution)
- Public Goods (i.e. military)
- Asymmetric information