There is some point at which government is so large, so parasitic and so demonically supported by its subsidized citizens that it effectively suppresses innovative commerce. Do we know that point?
We can begin by looking at Europe. Europe is dead from the vantage point of innovative commerce. Since WWII Europe has not produced significant technological innovation. To know how preposterous the counter argument is, compare the hundreds of millions of Europeans, including East Europeans to the miniscule several million people in Israel. Israel out produces Europe in commercial innovation 10 times every year. Europe is a commercial zombie.
Europe has a government to GDP ratio of between 45% and 50%. The vitality that Margaret Thatcher brought to England was promptly washed away by a high and overbearing government assault. We can therefore know that 45% of total commercial output diverted to government is fatal parasitism.
The United States is not such a clear issue. We have a ratio somewhere between a 30% and 35% parasitic government burden.
That burden is greater in some states than others; even a 5% difference between states results in the migration of business and workers.
What is unique about the United States is that American government has always been built up from the bottom and consequently is magisterially inefficient. That inefficiency results sometimes in high taxes but low regulatory interference.
The other unique issue in America is that we have a cheese grater form of taxation. It is so full of holes that tax corruption allows many businesses to thrive on very low or no taxes.
I cannot achieve the goal I set out for in this blog. But I can estimate in crude terms that the government percentage of parasitism below 35% of GDP does not suppress commercial vitality. At 45% and over commercial vitality is dead.
The next point we need, in understanding, this issue is some measure of regulatory tyranny. Europe, which tries to destroy every major American innovative industry, with lawsuits and antitrust malice, is aggressive in its destructive efforts. Obama and the 21st Century Democrats are ingenious in their commercial obstruction and tyranical malice. That needs to be measured.