Interest rates to fall, property to boom again.

[Ocean Architect]

Australian exporters export coal, iron ore, gas, metals, gold, wheat, meat, milk.
What on earth are you talking about? Bulk commodities mate.

We don't export cars, earth moving machinery, aircraft, textiles, computer equipment, TV's, electronic stuff, white goods, furniture, and on and on. That's the stuff you need to have quality not quantity.

It's not australia's commodity exporters fault that we cannot manufacture stuff competitively. It's our high wages and incredible high standard of living that makes us uncompetitive, and our wealth comes from commodity exports. Who wants to work in a factory churning out electronic widgets for $2 an hour anyhow? Not me, and not you.


See ya's.

That's a bit unfair (and off the mark). Germans get paid very well for their work in factories and enjoy a fantastic standard of living producing precisely those goods, and are resource poor compared to Australia. There is absolutely no reason that Australia, with a socially coherent, educated, healthy population with an abundance of natural resources cannot do the same - if we had the political will to do so.

 

[Bon]

I am pretty sure those average people who aren't in the mining game are doing it pretty tough at the moment.

 

[topcropper]

That's a bit unfair (and off the mark). Germans get paid very well for their work in factories and enjoy a fantastic standard of living producing precisely those goods, and are resource poor compared to Australia. There is absolutely no reason that Australia, with a socially coherent, educated, healthy population with an abundance of natural resources cannot do the same - if we had the political will to do so.

What do you mean by 'political will'?

Industry works best by leaving it alone. The more government gets involved, the more red tape and crap, the less productive it all gets. I can only assume you mean political will in re-introducing tarrifs and trade barriers and stuff to protect industry? Bring in trade barriers to protect our manufacturing and it will mean we are still producing stuff, but if a flat screen TV costs 10k, is it really worth it? Then if we are protecting secondary industry, other countries in retaliation disadvantage our productive industries, so we then find extra trade barriers on our mining and agricultural exports.

What ways do you get manufacturing going again while retaining our fantastic high wages?


See ya's.

 

[Ausprop]

What do you mean by 'political will'?

Industry works best by leaving it alone. The more government gets involved, the more red tape and crap, the less productive it all gets.

not always true - Japan and Germany would be an economic and political basket case if the US hadn't rebuilt them. And look at how the korean major companies were developed. Even the likes of CBA are a good example of how govt can incubate and then spin off

 

[Ausprop]

Australian exporters export coal, iron ore, gas, metals, gold, wheat, meat, milk.
What on earth are you talking about? Bulk commodities mate.

there is a circular error in your argument. The dollar is high because these items are in such demand, which is overheating the economy and driving IRs up. If we don't export anything else then what is the problem?

 

[BayView]

That's a bit unfair (and off the mark). Germans get paid very well for their work in factories and enjoy a fantastic standard of living producing precisely those goods, and are resource poor compared to Australia. There is absolutely no reason that Australia, with a socially coherent, educated, healthy population with an abundance of natural resources cannot do the same - if we had the political will to do so.

What does a factory worker in Germany actually earn?

The other "hidden" cost of employing folk in Aus are the extras - sick pay, holiday pay, my favourite; holday pay loading , long service leave, super guarantee, change of shift allowance, and so on.

The political will has little to do with it I'd wager.

And with the factory worker, they (factories) are largely a private enterprise, and the owners aren't going to be pushing for payrises in a hurry. They'll be keeping wages as low as they can as long as they can.

You could stretch a long bow and say that the Pollies always bow to the Unions and give the workers what they want...

I guess then what we need is Pollies to have the guts to say "look you lot; shut up and get back to work - you're not getting any more pay rises, and stop putting yer hand out for free money and start saving".

But this won't happen, and most Aussies won't work for our factory wages rates unless they are absolutely desperate and can't get a better paying job elsewhere.

It's even that way now for yer "traditional" types of jobs such as teachers, nurses, mechanics etc. A well paid one of these will earn maybe $80k per year tops ( mechanic won't), so why would yer average reasonably intelligent student of today opt for these jobs when they can earn over $100k in other "office" type jobs, work in relatively clean hands environment and have weekends off?

They will only do them if they have the yearn/love to do it (thankfully there are still some that do).