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Rubbish.Quote:
Originally Posted by PhilipA
Our secondry industries including the car industry that was Heavily subsidized simply couldnt (and still cant) compete internationally.
Why do you think that a large proportion of our secondary processing is done overseas, It's because we cannot compete and get the job done for the same price onshore.
Laying the blame for that on the mining industry is a Cop OUT and unadulterated BS.
We have a few economist hereQuote:
Originally Posted by trout1105
And no offense but I think they need some education
What happened here is called Dutch disease.
Just Google it
Australia has a huge trade surplus against China.
In Trump's words, China has a huge trade surplus against USA and it means China is raping USA. And therefore China needs America more than us needs China.
So Australia has a huge surplus against China. What does it mean? You tell me haha
it's good to see you agree with me even though you do not seem to know enough economics to know why.Quote:
Our secondry industries including the car industry that was Heavily subsidized simply couldnt (and still cant) compete internationally.
Why do you think that a large proportion of our secondary processing is done overseas, It's because we cannot compete and get the job done for the same price onshore.
Laying the blame for that on the mining industry is a Cop OUT and unadulterated BS.
A major reason that Australia secondary industry cannot compete is that the exchange rate makes imports relatively cheaper or offshore secondary processing cheaper..
I recommend that you read the link that I list below.
Iron ore and the Australian Dollar: Two Peas in a Pod?
The period of $1.50USD exchange rate coincided with the death of much of our secondary industry . You think that is coincidence?
The export of Iron ore and coal dragged the exchange rate up to heights where no other industry was competitive with imports or competitive in export markets.
It is only the extractive and primary industries that have remained competitive as they set the exchange rate and we generally have a freight advantage over competitors such as South America.
Its a fact not BS. It is true the car industry was featherbedded far too long but even Toyota could not make money here at the exchange rate . It's impossible to know but I reckon Toyota would still be here if the exchange rate was back then as it is now.
Regards PhilipA
Quote:
Originally Posted by PhilipA
Well, there are actually two issues:
1. We never had a home-grown car industry exporting Australian cars: the factories here were just branch offices for the US and Japan and when head office had a choice between their country and ours, they chose theirs. That's why, when Nissan had to close plants they closed overseas ones in lieu of closing plants in Japan. In effect the subsidies that GM got were a price to keep shuffling cars out here, when the subsidy went so did the logic of manufacturing here. There was a proposal in the 70s to create an Australian car company owned by the Commonwealth - it would've been a featherbedding disaster but the concept was right.
2. Toyota and Ford couldn't keep manufacturing here once GM pulled out because there wasn't enough volume for the parts manufacturers they relied on to be economical, so one going down tipped all three over. Of course, the industry could've created an export-oriented industry but no-one was thinking that way and Ford and Toyota were just branch offices so had no incentive to do it. Which is why Korean and Japanese cars are built by Korean and Japanese car companies. And, BTW, the Yen is much stronger than the AUD so I don't totally buy the "it's too expensive to build here" argument. I also don't accept the "we can't build quality" argument - the Toyota factory in Port Melbourne used to turn out better cars than some of their factories in Japan.
What I do find interesting is the remanufacturing of the US utes here - the old conversions, like 20 years ago, were apparently pretty shoddy but the current ones look like factory. No surprise, because, for example, the dashboards are apparently being provided by the company that used to supply Toyota et al with their dashboards.
I think you are right in part, but you are missing that this was an outcome welcomed by most Australians.Quote:
Originally Posted by PhilipA
The Federal government welcomed the company and income tax revenue, the state governments welcomed the direct royalties from coal and iron ore (except for Victoria, SA, and Tasmania who didn't have any), and most Australians welcomed cheaper imports, lower fuel prices and cheaper overseas holidays with open arms. Why would the government of the day follow a policy that would cost them revenue and lose votes?
IF we had of taxed the crap out of the mining industry we wouldn't have what we have now to pull us out of the ****.like they are doing at the moment AND for the last couple of decades.Quote:
Originally Posted by PhilipA
Once Keating floated the dollar the exchange rate has fluctuated ever since, The farming, fishing and mining industry has been able to cope with this the secondary industries obviously havent because they are Not competitive enough.
Why blame the mining industry for the secondry industries shortfalls??
Don't blame the exchange rates because our secondry industries were Not competitive BEFORE the dollar was floated.