"gobble" (l.22) is synonymous with swallow.

This text refers to items from 9 through 20.

Government: stay out of the Economy

1 ____ The current expansion of government intervention

is going to undermine economic growth. Pro or con? Over

the past nine months, government intervention in the

4 economy has spread like a wildfire. From federally mandated

executive compensation rules for companies and job roles

that had nothing to do with the financial meltdown, to the

7 ouster of General Motors (GM) CEO Rick Wagoner at the

behest of the White House, to forcing banks to take and keep

Troubled Asset Relief Program money, Washington’s

10 tentacles are reaching into the minutiae of private business

dealings like never before. Setting aside the long-term

philosophical questions this raises about the role of

13 government in society, one short-term question is whether or

not it will aid recovery. I do not believe it will.

A 1998 Congressional Joint Economic Committee

16 study concluded the optimal size of government to maximize

economic growth was about 18% of gross domestic product

(GDP). Even before today’s unprecedented debt and

19 spending, all levels of government in the U.S. controlled

37% of GDP. Recent federal spending will drive up

government’s share to more than 40%. A single federal

22 health-care plan would gobble up another 16%, putting more

than 50% of the economy in government’s hands.

Economists increasingly understand the Great

25 Depression was prolonged by government intervention in

trade, private industry, and banking. We have evidence from

other countries, too. As Ireland’s tax burden and share of

28 GDP fell, the Celtic Tiger roared. Recent National Bureau of

Economic Research findings show that Jamaica’s pursuit of

“social justice” policies has retarded its growth compared

31 with its less interventionist sister island, Barbados. From

1960 to 2002, Barbados’ per capita GDP doubled, but

Jamaica’s grew only 50%.

34 ___ Government has an important and legitimate role to

play in a growing economy. It should enforce contracts,

create a level playing field for all businesses, and steadfastly

37 promote the rule of law. U.S. entrepreneurs can take it from

there.

Internet: <www.businessweek.com> (adapted).

In the text,