Friday, November 8, 2013

Economy: The Less Government, The Better

(Drivebycuriosity) - The US economy is in a better shape than the majority believes. This morning we learned that the US economy created 206,000 new jobs in October, more than expected (120,000) and the month before (163,000  seekingalpha). This week we also got news that the US service sector (around 2/3 of the economy) accelerated its growth in October (calculatedrisk).

It is clear now that the government shut down in October didn`t hamper the economic upswing in the US, quite the contrary (driveby). We also got good news from Europe. UK reported the fastest growth in business activity since May 1997 (businessinsider).

It seems that the austerity policy (less government spending) harvests its first fruits. Spending cuts led to less government influence and less bureaucracy. Private enterprise are gaining more scope which animates more private investments. Money is used more efficiently leading to higher returns which is mirrored in the rekindled economic growth in the US and Europe.

The less government, the better.

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