Certain Quote by James M. Buchanan
“You have to have a government to provide you with legal order, with stability, enforcement of property rights, enforcement of contracts, definition of rules and regulations - the rules of the game, so to speak - and to provide certain shared goods and services, public services. Several people have tried to estimate this and they come out with figures like government spending at 15% of GDP. In the modern world it has gone to 40% or above. So we are way beyond the optimal, and that is easier to say than what the optimum is.”
About This Quote
Source Speech: Economic Lecture on Government Size, 1970s
Governments should provide essential order and services, but current spending far exceeds the optimal level.
In simple terms: Too much government can be wasteful.
Key Takeaway
Seek efficient, limited government.
Themes
public policy
economics
government size
Mood
critical
inquisitive
Type
political
economic
When to use this quote
- budget planning
- policy reform
- tax debates
Key Concepts
public goods
taxation
optimality
Questions to Reflect On
- What criteria define optimal government size?
- How can we balance efficiency with public needs?
A Different Perspective
Optimal level is hard to measure and may vary by context.
