David Alexander on Australia

Australia is one of the most economically free countries in the world, and has for some time been among the smallest governments in the developed world, with low levels of tax and spending. Last year, according to the OECD’s Economic Outlook, Australia was the Thatcherite’s number one performer, with not only the lowest level of government spending of all developed countries but also the lowest level of taxes of all developed countries equal with South Korea).

Alexander also stresses that Australia both is and feels relatively egalitarian, while having a high level of ethnic diversity.  He writes to me:

One key to this is that Australia is the means-testing capital of the world, with the lowest proportion of transfers to high earners of any country; The second key is the very low taxes on low earners; This highly progressive tax and transfer system produces small and dynamic government – I call it egalitoryan – but it turns Hayek and Buchanan upside down.

There is much more here.


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