Tim Knox, Director of the Centre for Policy Studies, commented:
This paper shows that smaller government results in higher growth – making a mockery of the current austerity vs. growth division. This should give our politicians confidence to pursue a smaller state to achieve long-term, lasting prosperity.
There is extensive evidence both in this report and from the 2020 Tax Commission, that we would all be more prosperous if government were smaller. Unfortunately, our country seems to be in the grip at present of an unwarranted mood of neurosis and no wonder, when explanations of this crisis so often range between the unsatisfactory and utter junk like this.
Making government smaller would not in itself be enough. Crony capitalism must be brought to an end. No one should have their commercial risks or returns underwritten by the taxpayer, including banks and others in the financial system. And, as I have said repeatedly, society needs a good quality money.
We are in a crisis because 40 years of chronic currency debasement has run its course. Inflation alone would be damaging enough to society but now failed systematic state intervention in the financial system — central banking, fiat money, taxpayer-backed deposit insurance, limited liability, dangerous accounting rules etc — is presented and perceived as a failure of markets. No wonder there is fibrillation amongst politicians, officials and the public.
Crony capitalism must be brought to an end by withdrawing state power from commerce and particularly from money and banking. The forces of social cooperation through production and voluntary exchange must be allowed to work. Government must live within its means and do just that which is necessary to defend the institutions of a free society and to protect those who would otherwise perish. Then we would know sustained and just prosperity.