The size of government matters because it shapes how much room remains for private choice, enterprise and investment. From a classical liberal perspective, government provides an essential framework for markets, but expanding its responsibilities carries costs. Taxation reduces the resources people can allocate themselves and can weaken incentives to work, save and invest. Public spending must therefore be judged against the private uses of the resources it displaces. Where public expenditure exceeds half of gross domestic product (GDP), as it does in France and Germany, political decisions determine how a substantial share of national income is raised and redistributed. [...]