The world is entering a new era of big government
How should classical liberals respond?
“KEEP YOUR eye on one thing and one thing only: how much government is spending,” Milton Friedman once said. Today his eyes would be popping. Governments have spent $17trn on the pandemic, including loans and guarantees, for a combined total of 16% of global GDP. On current forecasts, government spending will be greater as a share of GDP in 2026 than it was in 2006 in every major advanced economy. America is about to put $1.8trn into expanding its welfare state; Europe is doling out a €750bn ($850bn) investment fund; and Japan is promising a “new capitalism”, with even more government largesse.
This article appeared in the Leaders section of the print edition under the headline “The triumph of big government”
From the November 20th 2021 edition
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