Figures from Australia compares:
How Australia Compares
has figures for total taxation in 2000 of 32.5% and government outlays as 36.6% of GDP.
A countries \'style of capitalism\' is also about how companies are financed. Germans talk about Anglo-Saxon capitalism, meaning capitalism based on company funding coming through the stock exchange. This is how Australia has funded things. Wheras in Germany the banks have given loans to the \'Mittelstand\' small to medium sized enterprises at low rates and with high security. The Japanese fund things through Zaibatsus and collaboration, and also by having the world\'s largest financial institution, the Japanese Postal Service.
Each of these systems has their advantages. Anglo-Saxon style capitalism allows rapid exploitation of new technologies as shown by America\'s dominance in computers. The German and Japanese systems provide more stability that enables manufacturers to plan more for the longterm as shown by the superiority of the German and Japanese auto industries. While the Germans have invented electronic fuel injection and ABS braking over the past 20 years, the US auto industry has \'invented\' the SUV and the cupholder.
A better way of looking at government expenditure is by looking at what the government provides and if the government provides them well. One of the big things that should be taken into account with US figures is that the US, unlike Europe and Australia, does not have government health care. Another factor to take into account is the cost of University education. The scandalously rapid rise of University education in Australia means that for about one third of Australians the government has ceased helping them for a major expense.
It is also curious to view Asian levels of government expenditure as definitely a good thing. Japan has not done well over the last 10 years. Many Asian countries may be growing rapidly, but that is surely because they start from a fairly low base.
Australia\'s level of government spending is reasonable. Australia\'s government provides a good suite of effective services at a good price.
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