Excellent comment from Loonyright at Macrobusiness.com.au on damage to Australian industry caused by the higher dollar:
Australia has been losing investment in research and manufacturing well prior to 2002. The volatility of our currency is of nothing compared to the static, elevated cost of doing business – all resulting from higher wages, unattractive taxation, and unattractive levels of regulation. We are a stable, well educated populace – this should be the ideal home of all kinds of investment. Instead we have slowly and steadily dug ourselves into an entitlement mindset out of proportion to our ability to fund it. If we truly want a competitive, diversified economy that is not reliant on commodity prices and low interest rates to drive activity via the property market, then our uncompetitive wages, taxation and regulation MUST be addressed. It is fantasy to think we can change our fortunes without changing these factors.
So , if I read this correctly , the gist of the argument is as follows. We should lower taxes, regulations and wages. This would then mean we could make more different stuff at a lower price , so that we would have a price advantage over other countries that make the same stuff as us.I wonder what the thousands of well educated ,indebted students would think about that idea.
We need to improve our competitiveness as a country. To do this we need to concentrate on economic efficiency and reducing the current regulatory/tax burden. We can improve equity at the same time by focusing on equal opportunity and ensuring that special interest groups do not exert undue influence over government.
Chris…..That is really a simplified, inaccurate and ridiculous response. The general “gist” as you put it is correct in that we are becoming a self indulged “entitlement” society is correct. The over regulation and red tape stifles our country. The issue of wages also needs to be addressed particularly in the area of penalty rates.
It is not helpful to call my opinion “ridicules “or “inaccurate” . If you want to disagree that is fine , but you need to explain why I am wrong. So please if you want your point of view to have any legitimacy , you need to state which entitlements are wrong and why. The same goes for the the regulations that you would like removed.
Perhaps you would like to tell me why removing the “Glass Stegal” act was a good idea.