Adventure Ausrama Blog

The Australian economy is heading southward and this does not mean we are moving closer to Antarctica. Our financial health is still in primary products. The price and demand for iron ore and coal still drives the economy. At the moment the foot is really off the accelerator and we are idling downhill. We will eventually reach the bottom. Then the country will have big problems. Tax revenue is already falling due to lower demand by China. US demand for Chinese good remains sluggish. As the world economy falls it impacts strongly on Australia. We have not made the move away from agriculture and manufacturing. This is mainly because our resource bowl has kept wages high. Manufacturing countries always have a wage differential advantage. In time, wages will rise in China as they have in Japan. Then companies will probably move to Southeast Asia. The hope that Australia will have a increase in IT start-ups to offset the fall in resource exports is not well founded. Products

Australia is going down the same road as the British by privatizing public resources. There is a major problem with this economic theory. That is, that once resource are sold and the money is used to pay off debt it cannot be sold again. When railways, electricity and water are privatized they are no longer under public control. Ordinary people are at the mercy of private enterprise who have been shown to continually increase charges beyond what citizens can bear. This is the cold reality of what the future will be like. Politicians of the right have put faith in private enterprise for a century or more. The trickle down benefits of wealth are shown to be completely wrong. The riches of nations is still being consolidated into fewer hands. The poorer are poorer still. Despite consumer goods being widespread, very few can afford a Ferrari. Millionaires have been superseded by billionaires. And the these consumers of all things monetary still want more. When services

There are calls from many quarters for keeping Australia's car industry alive. I am not so sure that a country needs its own motor industry anymore. Times have changed. No vehicle is made entirely in one country today. The days of getting prestige from it are long gone. Propping up a floundering car sector is against all practical economic and social theory. It doesn't make sense to spend taxpayers money in such a wasteful way. Holden and Ford continue to take handouts while still not making any profit. Ford has already gone. The days for Holden are numbered. Holden was never a truly Australian car. It was an old General Motors design left in a drawer collecting dust until it was thrown on the table at a meeting in Australia. Australia has never been a manufacturing country. It is not like Britain which has very in the way of natural resources so must generate income somehow from industry. Large businesses have only been in the primary sector. Exporting wh

According to the Household, Income and Labour Dynamics in Australia survey we have never been able to buy so much with our income. Over the last decade income inequality has hardly changed, Wages have risen faster than inflation. Of course, we know that announced inflation is lower than real price rises. Although Australia's debt is low compared to other developed countries, less than half of Australians believe this. Despite the good times, many are feeling down and depressed feeling that the country is not doing well economically. This is probably due to the negative political arena at the moment with any bad news being blown out of proportion, with political blame and counter denials being kept uppermost in people's minds. We should be happy but the minority, politicians, are pulling us down. Things are certainly changing now with Chinese demand for primary products falling as well as prices producers receive. The new government, in September, will have to deal with