First, let me explain some key terms and concepts that you will need to understand.

• GDP stands for gross domestic product, which is the total value of all goods and services produced in a country in a given year. It is a measure of the size and performance of an economy. ¹
• Government spending is the amount of money that the government spends on public services, infrastructure, social welfare, defense, and other activities. It is usually expressed as a percentage of GDP to compare the relative size and role of the government in different countries. ²
• Private spending is the amount of money that individuals and businesses spend on consumption, investment, and savings. It is also expressed as a percentage of GDP to show the level of economic activity and demand in the private sector. ³
• Socialism and communism are economic and political systems that reject capitalism and aim for greater equality and social justice. They differ in the degree of public ownership and control over the means of production and distribution. ⁴
  • Under socialism, all citizens share equally in the economic resources as allocated by a democratically-elected government. Individuals own personal property but all industrial and production capacity is communally owned and managed. ⁵
  • Under communism, most property and economic resources are owned and controlled by the state (rather than individual citizens). Individuals hold no personal property or assets. Production is intended to meet all basic human needs and is distributed to the people at no charge. ⁶

Now, let me provide you with some data and sources that you can use to compare and contrast different countries based on their government spending, private spending, and economic system.

• According to the World Bank, the average government spending as a percentage of GDP for the world was 15.8% in 2019. However, this varies widely across countries, ranging from 2.1% in South Sudan to 56.8% in France. ⁷
• The table below shows the government spending as a percentage of GDP for some selected countries in 2019, along with their economic system. ⁷⁸

| Country | Government spending (% of GDP) | Economic system | | ------- | ------------------------------ | --------------- | | China | 16.7 | Communist | | Cuba | 34.0 | Communist | | France | 56.8 | Socialist | | Sweden | 49.4 | Socialist | | United States | 37.8 | Capitalist | | Australia | 36.1 | Capitalist |

• You can see that communist countries tend to have lower government spending than socialist or capitalist countries, as they rely more on central planning and state-owned enterprises to produce and distribute goods and services. ⁹
• You can also see that socialist countries tend to have higher government spending than capitalist countries, as they provide more public services and social welfare programs to their citizens. [^10^]
• Private spending as a percentage of GDP can be calculated by subtracting government spending and net exports (exports minus imports) from GDP. The table below shows the private spending as a percentage of GDP for the same selected countries in 2019, along with their economic system. ¹¹

| Country | Private spending (% of GDP) | Economic system | | ------- | --------------------------- | --------------- | | China | 77.8 | Communist | | Cuba | 51.9 | Communist | | France | 41.5 | Socialist | | Sweden | 46.0 | Socialist | | United States | 61.0 | Capitalist | | Australia | 57.8 | Capitalist |

• You can see that communist countries tend to have higher private spending than socialist or capitalist countries, as they have a large informal sector and a growing middle class that consumes more goods and services. ¹²
• You can also see that socialist countries tend to have lower private spending than capitalist countries, as they have higher taxes and less income inequality that reduce the incentives and opportunities for private consumption and investment. ¹³

Finally, let me give you some arguments and evidence for and against the efficiency of different levels of government spending and private spending.

• Efficiency is a concept that measures how well an economy uses its resources to produce the maximum output and welfare. There are different types of efficiency, such as productive efficiency, allocative efficiency, and dynamic efficiency. ¹⁴
• Some economists argue that lower government spending and higher private spending lead to higher efficiency, as they allow the market forces of supply and demand to determine the optimal allocation of resources. They claim that government spending is often wasteful, bureaucratic, and prone to corruption and rent-seeking. They also claim that private spending is more responsive to consumer preferences and market trends and provides more incentives for innovation and entrepreneurship. ¹⁵
• Other economists argue that higher government spending and lower private spending lead to higher efficiency, as they correct the market failures and externalities that distort the allocation of resources. They claim that government spending is necessary to provide public goods, merit goods, and positive externalities that the private sector would underprovide or not provide at all. They also claim that private spending is often irrational, speculative, and harmful to the environment and society. ¹⁶

I hope this information and resources are helpful for you to write your primer about economics. If you need more assistance, please let me know. 😊

¹: GDP (current US$) | Data ²: Government spending - Wikipedia ³: Private consumption - Wikipedia ⁴: The Differences Between Communism and Socialism - ThoughtCo ⁵: Socialism - Wikipedia ⁶: Communism - Wikipedia ⁷: General government final consumption expenditure (% of GDP) | Data ⁸: List of countries by economic system - Wikipedia ⁹: Between communism and capitalism: long-term inequality in ... - Springer [^10^]: Capitalism, Socialism, Communism: Distinguishing Important Economic ... - BYJU'S ¹¹: Private consumption expenditure (constant LCU) | Data ¹²: China's Informal Economy: The Largest in the World - The Diplomat ¹³: The Nordic Model: Pros and Cons - Investopedia ¹⁴: Efficiency - Economics Help ¹⁵: The Impact of Government Spending on Economic Growth - The Heritage Foundation ¹⁶: Government spending and economic growth - OECD Observer

Source: Conversation with Bing, 21/11/2023 (1) The Differences Between Communism and Socialism - ThoughtCo. https://www.thoughtco.com/difference-between-communism-and-socialism-195448. (2) Capitalism, Socialism, Communism: Distinguishing Important Economic .... https://www.socialstudies.com/blog/capitalism-socialism-communism-whats-the-difference/. (3) Communism vs. Socialism: What's the Difference? - Investopedia. https://www.investopedia.com/ask/answers/100214/what-difference-between-communism-and-socialism.asp. (4) Between communism and capitalism: long-term inequality in ... - Springer. https://link.springer.com/article/10.1007/s10887-021-09190-1. (5) Difference Between Communism, Capitalism and Socialism - BYJU'S. https://byjus.com/free-ias-prep/difference-between-communism-capitalism-and-socialism/. (6) Five Best: Economics Primers - Scholars at Harvard. https://scholar.harvard.edu/sites/scholar.harvard.edu/files/mankiw/files/economics_primers.pdf. (7) The Principles of Economics Textbook - NYU Stern. https://www.stern.nyu.edu/sites/default/files/assets/documents/con_042988.pdf. (8) Economics: A Primer | Bayes Business School. https://www.bayes.city.ac.uk/news-and-events/news/2018/february/economics-a-primer. (9) Which Is Better: Government or Private Spending? - PBS. https://www.pbs.org/newshour/economy/which-is-better-government-or. (10) Private Sector vs Public Sector - Economics Help. https://www.economicshelp.org/blog/2634/economics/private-sector-vs-public-sector/. (11) The Impact of Government Spending on Economic Growth. https://www.heritage.org/budget-and-spending/report/the-impact-government-spending-economic-growth. (12) The Relationship between Public and Private Investment | Levy Economics .... https://www.levyinstitute.org/publications/the-relationship-between-public-and-private-investment. (13) Difference Between Government Spending And Private Spending. https://www.ipl.org/essay/Difference-Between-Government-Spending-And-Private-Spending-FKCRYF7ESCFR. (14) List of countries by government spending as percentage of GDP. https://en.wikipedia.org/wiki/List_of_countries_by_government_spending_as_percentage_of_GDP. (15) Australian Government expenditure – Parliament of Australia. https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202021/AustralianGovernmentExpenditure. (16) Government spending in the United States - Wikipedia. https://en.wikipedia.org/wiki/Government_spending_in_the_United_States. (17) United States Government Spending To GDP - TRADING ECONOMICS. https://tradingeconomics.com/united-states/government-spending-to-gdp. (18) Ratio of government expenditure to gross domestic product (GDP) in the .... https://www.statista.com/statistics/268356/ratio-of-government-expenditure-to-gross-domestic-product-gdp-in-the-united-states/.