Megan Gellatly 2nd hour
Overall Score: 81.4 World Ranking: 4
Australia Quick Facts vs the United States
Population: 23.2 million/ 316.4 million
GDP: $999.6 billion/ $16.8 trillion
GDP Growth: 2.4%/ 1.9%
GDP per Capita: $43,073/ $53,101
Unemployment: 5.6%/ 7.5%
Inflation: 2.5%/ 1.5%
Foreign Direct Investment: $49.8 billion/ $187.5 billion
As you can see in the graph, I am comparing Australia, Russia and the US in every of the 7 Major Sources. For the Legal system, I choose property freedom. Russia has always been low in this area, coming close to the world average in 2001 but just missing it. Australia and the US have been even until 2009. This is where the US took a dip below Australia. Property freedom is a good example of the legal system with how they work with property rights.
For Competitive Markets, I choose Business freedom. This is a good example because business freedom effects how competitive a market is. Russia and the US started off at the same place then Russia took a deep drop and has been going up and down ever since. Australia and the US have both been above the world average with Australia being the higher one currently. All counties and the world average have had ups and downs through the years.
Limits on Government Regulation
For Limits on Government Regulation, I choose Fiscal Freedom. Russia has been higher than the world average. Australia has been lower than all these countries and the world average. This indicated that fiscal freedom is mostly unfree. The US and the world average are moderately free.
An Efficient Capital Market
For an efficient capital market, I choose government spending. All these countries and the world average have had their ups and downs. Australia started off mostly unfree. Ups and downs through the years caused Australia to switch between moderately free and mostly unfree. Now in 2015 Australia is moderately free, right with the world average.
For monetary stability, I choose monetary freedom. It combines a measure of price stability with an assessment of price controls. Currently, Australia is higher than the world average and is placed in the free slot. They are more stable since they are free. Australia has had ups and downs in this category but stayed in the free slot.
Low Tax Rates
For low tax rates, I choose financial freedom. Australia has stayed the same through out all the years, meaning no change and have always stayed in the free slot. They have remained above the world average as well. Tax rates change based on where you are. There is some variation in the rate, but all around they are low.
For Free Trade, I choose Trade freedom. Australia has increased with a slight decrease before increasing again. Now they are right with the US for 2015 in the free category. Australia has a higher trade freedom than Russia and the world average. They have less restrictions regarding trade.
The Facts on Australia's Economy
He talks about the pros and cons of Australia's economy with some effects including the cut of education.
Australia is looking strong. Both real and nominal growth is strong. Mining is still king, with major growth. Workers are very productive, with a major growth in that area.