Over 30 to 35% og GDP, except in Scandinavian countries, taxpayers refuse to cover public spending over a 70% threshold. Governemts that have high public spending are entrapped in deficit and debt. Stimulus policies failed. True economic stimulus can be found by less regulation and less public intervention.
OECD data are used for population, GDP, employment, working time, investment, trade, spending, revenues and debt.
Read study : Relance et Croissance
For getting out of the public finance crisis it is a good thing to cut on spending. To reform the public sector is even better. But is it also necessary to increase taxes? With few others, Jean Philippe Delsol, administrator of IREF, had developed the conviction from past experience that one should instead decrease the tax burden.
Last week, Eurostat published the statistics on GDP growth for 2009 and it is without surprise that we read in the data a slowing down of economic growth for OECD countries. The average decrease in GDP points for EU countries is -4.2%. But this average is hiding some astonishing disparities.
