Six Reasons to Downsize the Federal Government

CATO-

1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.

2. As federal spending rises, it creates pressure to raise taxes now and in the future. Higher taxes reduce incentives for productive activities such as working, saving, investing, and starting businesses. Higher taxes also increase incentives to engage in unproductive activities such as tax avoidance. » read more

Share on Facebook

The Libertarian Vote in the Age of Obama

CATO Institute

Libertarian — or fiscally conservative, socially liberal — voters are often torn between their aversions to the Republicans’ social conservatism and the Democrats’ fiscal irresponsibility. Yet libertarians rarely factor into pundits’ and pollsters’ analyses. » read more

Share on Facebook