The below chart shows state spending as a percentage of GDP in the UK regions compared to a selection of OECD member countries:
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(chart source: coffee house blog)
As you can see, state spending as a percentage of GDP in Wales is currently running at almost 70% - i.e. of every £10 spent in Wales, £7 is spent by the Government. This is approximately 25 percentage points above the OECD average and 20 percentage points above the Euro average. More remarkable still is the fact that Wales also eclipses both Sweden and Denmark - standard bearers of the Nordic big government model (with corresponding big taxes).
The consequences of having an over-large state sector in Wales is that the majority of resources (both financial and in terms of young talent) get sucked up by the public sector thus stunting private sector growth. We should therefore not be surprised when Wales is named as "the least competitive" region in the UK - as it was just last week by the UK Competitiveness Index.
This problem is compounded when you consider that we are increasingly governed by people who have had no private sector/wealth creating experience at all. The below chart shows the backgrounds of the Assembly Members who make up the current ruling Labour/Plaid Cymru coalition before they went into politics:
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Only a paltry 13% of Labour/Plaid Cymru AMs have ever worked in the wealth creating part of the economy (You can see more details here). Policies will of necessity reflect the beliefs, value systems and experience of the politicians who formulate and vote for them - therefore, when you consider the background of our legislators, the answer to any problem will always be more public spending thus making us even more uncompetitive as a nation.