Another fake crisis considered

Economists dispute audit commission's federal government growth claims

This time on the size of government.  Some of these figures are from the ACTU, which means they should be approached with some caution, but still, here it is:

It says the commission should also be aware the size of government has not ''expanded significantly'' if it is measured by reference to government employment.

''In June 1996, the Commonwealth employed 354,800 people in the general government sector. As at June 2012, the number stood at just 250,000.

''Commonwealth government employment is lower now, as a share of the population or total employment, than it has ever been before. ABS statistics show that the number of people employed in the general government sector [across all levels of government] fell in 2011-12 for the first time since 1998-99.''

Data from the Organisation for Economic Co-operation and Development shows Australia has one of the lowest-taxing, lowest-spending governments in the OECD.

According to the most recent figures, Australian government spending accounts for 35 per cent of nominal GDP. In the euro area, it is 49.5 per cent. In the US it is 38 per cent

And Andrew Leigh weighs in:

''It's recognised by all serious commentators that the size of government in Australia is pretty close to Korea and the United States, and far smaller than Sweden and Finland,'' Mr Leigh said.

''Australia is a low-taxing country and the tax-to-GDP share fell by about one percentage point under the previous government.''

Sounds pretty convincing to me.