I don't even want to agree with that. The function of government is to provide essential services to society, and I don't think you can just say that it's better for the economy if you cut spending so it doesn't. I doubt the economy would be improved in a total anarchy, which is essentially your suggestion seen to its ultimate conclusion.

For example, even the Economist agrees that a market economy won't function without clear rules that everyone plays by. And they are also of the opinion that carbon taxes are better than cap-and-trade, because taxes provide better long-term stability so businesses are able to plan and adapt.