Dear John,

Previous research has shown that the size of government (as a share of the economy) to maximize economic growth and social progress is between 26% and 30% of the economy (GDP).

When governments exceed that size, it imposes negative effects on the economy, such as crowding out private sector investment, but without providing proportionate benefits such as greater social progress.

Unfortunately, a new Fraser Institute study out today finds that the size of government relative to the economy as a whole was a whopping 40.4% in Canada in 2019.

It was lowest in Alberta, and highest in Nova Scotia. Dig into the numbers and see how your province placed here.

Sincerely,

Niels Veldhuis
President
The Fraser Institute