An excellent post at Catallarchy:
The following graphs [read the post] are an excellent antidote to the leftist economists who claim that governments provide net value by solving public goods problems and making up for market failure, or liberals who insist that government spending on health care and education has positive externalities which more than make up for its cost.
One of my economics professors mentioned this once in class: a few Western European countries (I forget the names) in the late 80s and early 90s decided to cut the size of their governments. Of course, there were predictions of doom, but later the economies of these countries grew at a faster rate. They helped their economies by reducing their government spending. Conclusion: a bloated government impedes economic growth.