Do Government Expenditure Inhibit or Promote Economic Growth: Empirical Evidence from Kenya

Abstract

Every government is a captive institution both from demand side special interests and supply side take over by insiders operating for their own benefit and at the expense of the electorate. State national decline often arises from special interests corrupting a country’s institutions. Such narrow captive interests include crony capitalists (bankers), consumer activists, economic elites and labour unions. Though media does pay less censored attention to government insider-rulers, elected officials, bureaucrats, and public employees, their sphere of economic influence is seismically destructive. In Kenya, these insiders have the ill motive, means and opportunity to co-opt political power for their own benefit and at the expense of national well-being. Political rulers with exorbitant influence in banking and media have enslaved the country for its entire “independent” life. Corruption is an intricate web of fabric upon which fiscal policy is written on. Political dynasties continue to thrive fuelled by constant media hero worship, economic sabotage and outright brute elimination of any threat to their dominance.