Why should we care about the size of government? There are many reasons to be concerned, but the most obvious answer is that high levels of government spending and taxation suppress economic performance, which is the basis of material living standards. As Winton Bates reports, there is growing evidence that countries with high levels of government spending have generally been least successful at improving the material well-being of those in need and in maintaining personal liberty.

Winton Bates is an economics consultant based in Canberra, and was formerly an advisor to the New Zealand Treasury.