"Small Government" in the 21st Century

Hiroshi Shibuya

ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) from Otaru University of Commerce

Abstract: In this paper we tried to consider the fiscal reconstruction processes in the United States and Japan mainly from the viewpoint of the "logic of taxpayers", which brings the pressures to control the costs of welfare state for the aged. But today's pressures toward "small government" have one more purpose, to get rid of or to reduce the obstacles against market mechnism and economic growth, which are brought by interventions and regulations of government. In 21st century, because of the speed-up of the aging trend and the explosion of welfare state costs, I think, more reduction of governmental activities in many fields will be needed to promote economic growth and the resulting expansion of tax base. Many liberal policy measures, brought out by 20th century "big government", can not be maintained. Finally because of cost-explosion of the "aged-measure" part of the welfare state, the "nonaged-measure" part comes under much stricter pressures to be cut. I would hope that the representers and disputants in the second session add this viewpoint to their discussion.

Pages: 19 pages
Date: 1996-09
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Published in Discussion paper series (1996), 26: 1-19

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Persistent link: https://EconPapers.repec.org/RePEc:ota:busdis:10252/4225

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