Czuch: You've not read it all then. Look deeper and you'll find more of a breakdown and talk about the type of government spending.

"In theory the relationship between government expenditures and economic growth is ambiguous. Long ago, Thomas Hobbes (1651) described life without government as "nasty, brutish, and short" and argued that the law and order provided by government was a necessary component of civilized life.4 Taking the Hobbesian view, certain functions of government such as the protection of individuals and their property and the operation of a court system to resolve disputes should enhance economic growth.5 Viewed from another angle, secure property rights, enforcement of contracts and a stable monetary regime provide the foundation for the smooth operation of a market economy.

Governments can enhance growth through efficient provision of this infrastructure. In addition, there are a few goods -- economists call them "public goods" -- that markets may find troublesome to provide because their nature makes it difficult (or costly) to establish a close link between payment for and receipt of such goods. Roads and national defense fall into this category. Government provision of such goods might also promote economic growth. "

"..............In the real world, governments may not undertake activities based on their rate of return and comparative advantage. Small government by itself is not an asset. When a small government fails to focus on and efficiently provide core functions such as protection of persons and property, a legal system that helps with the enforcement of contacts, and a stable monetary regime, there is no reason to believe that it will promote economic growth. This has been (and still is) the case in many less developed countries. Governments -- including those that are small -- can be expected to register slow or even negative rates of economic growth when these core functions are poorly performed. Unless proper adjustment is made for how well the core functions are performed, the empirical relationship between size of government and economic growth is likely to be a loose one, particularly when the analysis involves a diverse set of economies."


I told ya to read it Czuch.