Government and Economic Growth in the 21st Century

This book offers an alternative view of the economy – and indeed, society – that does not rely on an ever-expanding government to address the problems which individuals typically face during their lives. The book is a Classical Liberal response to the way leading economies have been (mis)managed in the last three decades and the principles and models that have guided such policies, particularly since the outbreak of the Global Financial Crisis in 2007–09, which has resulted in enlarged government deficits and public debt, as well as more intrusive government regulation and virtually no economic growth. The book does not only criticise the current dominant view which favours ever-growing governments but also puts forward an alternative set of policies and institutions compatible with long-term growth in a free(er) economy. The book is structured around three major themes: (1) what classical liberalism is (or should be) and why it still matters, (2) how state-sponsored capitalism hinders the well-functioning of the market economy as well as being a bad recipe for economic growth and individual freedom, and (3) which are the essential Classical Liberal institutions necessary for a free market economy to flourish. This volume will be accessible not only to specialists in the subject but also to a well-informed audience interested in current economic issues, the role of government in the economy, and how history, traditions, the political system, and economics shape the institutions that help us to explain how markets function and their outcomes.