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Rollinstone, 20-25% is what I usually have read. I think even Keynes thought 25% was limit and anything past would be problematic. I wonder how long it will take for the citizenry to step up and demand change. How much liberty must be lost?
The Heritage Foundation supports Hazlitt and even adds to his theories with some recent studies on government spending. This economic study found that the optimum amount of government spending (Federal, State and Local Spending) is about 20 percent of GDP. Today our spending is more than 40 percent of GDP.
Prior to the Depression government spending was about 11 percent. FDR increased it to about 20 percent which was about the optimum. That should have stimulated the economy. But he also increased taxes, burdened businesses with stupid regulations, interfered with free trade, imposed high tariffs, and last but not least shrank the money supply not once but twice - he was an idiot.
Today we are on a similar path except we are expanding the money supply or at least creating the basis for a massive expansion. When the brakes are applied and they will be it will cause a contraction in the money supply and the economy.
BSspotter, it is a pretty easy read too. I have taken about a chapter a day to read through; the chapters are even short and sweet. These quotes only came from the first half or so of the book.
It's amazing how scalable ideas can be. These are true from the local to global level. Ol' Henry would've especially loved the garbage coming from our local gov't. In fact, he might've dedicate quotes 1-3 to Victoria in the footnotes.