It is getting Ugly in Greece....

[Monkeyleg]

The 1990's were a period of relatively low government intervention, yet the tech boom gave us one of the best periods of economic growth in the 20th century. There was also the "peace dividend" from the collapse of the USSR that helped keep spending down, but which later raised the cost of government.

I can't think of a time when big government spending coincided with a booming economy. If you want to cite WWII, go ahead, but it was borrowed money fueling the economy. Not the same thing.

[seeker_two]

BTW.......how are things in Greece?......

[Blakenzy]

Quiet before the storm.

[MechAg94]

The 1990's were a period of relatively low government intervention, yet the tech boom gave us one of the best periods of economic growth in the 20th century. There was also the "peace dividend" from the collapse of the USSR that helped keep spending down, but which later raised the cost of government.

I can't think of a time when big government spending coincided with a booming economy. If you want to cite WWII, go ahead, but it was borrowed money fueling the economy. Not the same thing.

Booming economy led to increased tax revenue plus reduced defense spending allowed increases elsewhere. 

Didn't the same thing happen in the 80's?  Tax revenue doubled over about 6 or 8 years and govt spending went up accordingly. 

[Monkeyleg]

Booming economy led to increased tax revenue plus reduced defense spending allowed increases elsewhere. 

Yes, and the boom was largely due to the explosion of the PC market and the internet, with sales of hardware and software driving it, and the government had nothing to do with it  (except for Al Gore, of course). The best thing that can be said for Bill Clinton is that he didn't get in the way too much.

The reductions in defense spending, while helping spur the economy, bit us in the butt later in the Middle East. It's a classic pattern for all nations: draw down the military, and find yourself at war a few years later with an aggressor who thinks you're weak.

[Jamie B]

BTW.......how are things in Greece?......

Just peachy! They are getting ready for another 5 years of spending!

[longeyes]

The 1990's were a period of relatively low government intervention, yet the tech boom gave us one of the best periods of economic growth in the 20th century. There was also the "peace dividend" from the collapse of the USSR that helped keep spending down, but which later raised the cost of government.

I can't think of a time when big government spending coincided with a booming economy. If you want to cite WWII, go ahead, but it was borrowed money fueling the economy. Not the same thing.

The '60s?  NASA?  There is always some dividend from big spending--whether on war materiel or getting to the moon--the question is how much a dividend for how much outlay, no?  And what are the unforeseen and unintended consequences?   For the benefits we get from government "investment" we might have gotten far more from non-investment and non-control, letting the private sector thrive by itself.