Lyndon,
Most economists would say that the relative price of labour in Australia is too high and has been so for some time. This has been evidenced over the years in footwear, textiles, car manufacture, CD manufacture, etc, etc, etc. Inevitably this will lead to a progressivley tightening of the belt, and one way this can be done is through fiscal policy. It certainly is the lucky country and having travelled extensively overseas agree that it's by far the best place to be, but for how long that will prevail is somewhat unknown
Lyndon,
Most economists would say that the relative price of labour in Australia is too high and has been so for some time. This has been evidenced over the years in footwear, textiles, car manufacture, CD manufacture, etc, etc, etc. Inevitably this will lead to a progressivley tightening of the belt, and one way this can be done is through fiscal policy. It certainly is the lucky country and having travelled extensively overseas agree that it's by far the best place to be, but for how long that will prevail is somewhat unknown
Most economists would say that because theyre living ina world of numbers. Share prices decrease when employment rises and vice versa.
If you want to live in a country that makes you sing the Kawasaki corporate song every morning while doing morning exercises, be my guest.LOL.
The costs of labour are not really that high in comparison with other countries similar to ours. Its the cost of labour in developing countries that are low and the working conditions bordering on slavery. Any Australian company who goes off shore to take advantage of that should be tried for treason in my opinion. Theyre no better than the corrput hacks at AWB
Sorry comrades
Thumper
Life is what happens to you when you're busy making other plans - J. W. Lennon
bassthumper,
Australia has close to full employment and the share prices has reached an all time record high. As both are high together your point is clearly inconsistent with today's reality.
We cannot fool ourselves Australia is in the world economy, not an economy of its own sinking somewhere to the bottom of the Pacific, and on the basis of the world economy economists postulate that the cost of labour here is relatively high.
Enjoy it while you can because it is likley that over time your belt will get progressively tighter as the real cost of labour in Australia reduces.
I feel that people affected by the economy are people that dont try hard enough, you get what you work for in this world. It does not worry me if interest rates go up or petrol. The ones that are having all the kids should be made to pay, and pay big time. Everything we have is paid for, I have always said if you cant pay cash , dont get it.Still look at all the people playing the pokies, plenty of cash to spend there.
Bollocks....Kids are our future, and we need plenty of them to support our ageing population. You talk about "having kids" is some sort of obsessive eating disorder that should be punished in times of economic hardship.
I feel that people affected by the economy are people that dont try hard enough, you get what you work for in this world. It does not worry me if interest rates go up or petrol. The ones that are having all the kids should be made to pay, and pay big time. Everything we have is paid for, I have always said if you cant pay cash , dont get it.Still look at all the people playing the pokies, plenty of cash to spend there.
What do you mean that the ones with all the kids should be made to pay big time?
Thats the kind of attitude thats causing our ageing population. We should be encouraging people to have kids not make them "pay big time".
Its those kids that are going to be spoon feeding us and wiping our faces and other body parts in the home in the future. Lets see who the burden will be then!
Hey Thumper and Ian – you guys reminded me of the great Keynesian vs Monetarist economics debates of the 70’s and 80’s. Neither Microeconomics nor Macroeconomics my strong subjects but I do remember that labour is but only one of the inputs to production. It’s well accepted that wages in Australia is high compared to the emerging economies but no higher than many other very successful developed countries. So the cost of labour is very important but on its own does not determine a country’s economic well being.
Similarly, it’s debatable but generally accepted by economists (but not necessarily the general population nor conservationists) that Australia presently does not have a large enough population to be self sustaining economically like Japan, for example, which relies more on its internal economy to generate economic growth. So if I am asked the question if we need more kiddies in our society, I would loudly shout from the rooftop – Populate or Perish! Of course, my personal opinion only ……..
Most of us believe Australia needs to be more competitive in the world markets and but at the same time targets its economic strength and efficiency. Australia needs to be smarter and more productive in what we do best. No point trying to compete with other countries that have already demonstrated their supremacy in the world markets whether itÂ’s in manufacturing of BMWÂ’s or simple goods like shoes and T shirts etc.
Bit of trivial question & answer here – did you know that prior to the recent resources boom, Australia’s biggest exports was sale of wheat, wool or manufactured goods such as Holden cars? Wrong! In fact, it was tourism followed by provision of educational services. There used to be joke in the past that a Japanese tourist in Australia has more economic worth than the weight of several bags of wheat exported.
Perhaps thereÂ’s a lesson for R&R here? We have to compete in a very saturated entertainment market here in Australia but we can only do so successfully if R&R is smart in doing what it does best, targets its strength and pitches at the right market sector? Just being expensive or cheap may not be sufficient or the key to the magic formula, I donÂ’t think.
Similarly, R&R needs more kiddies to sustain, rejuvenate and secure the music that we love so much for the future.
JItterbug,
Well expressed with a gentle touch of Marco 101 and Micro 101. Your point about population is critical as has been pushed for years by luminaries such as Richard Pratt, who was also saying more than five years ago, that Australia was facing a water crisis - and no one listened and see where we are today
Ian – you are right about Richard Pratt. Australia needs more such people who are great visionaries prepared to speak their minds and share their wisdom and foresight. Australia may seem slow in taking up their causes now but their visions will never dim. I remain hopeful their dreams will come to fruition one day.
In the same manner, I believe R&R needs visionaries too. Those people who can see the big picture and predict future trends and are prepared to speak their minds and come out fighting for the cause.
If I am not out of line here, may I say I commend MelÂ’s effort in starting up VicRock to promote R&R on line - technologically the most advanced and effective medium of communication in our society today and potentially capable of reaching out to a world wide audience. I would even be bold enough to suggest people like Mel, Cat and all those who do their bit to promote R&R on line as visionaries in their own right. We benefited from their efforts today and hopefully so will the future generations to come.
Jitterbug .I agree. Mel does provide a great service. And I imagine he is getting realy cashed up doing this. So, having done the maths Im starting my very own site too .Have you got a $1000 you can lend me? Im also doing a high quality calender myself . You can help me take the photos if your camera phone works.For a small fee I could include you on the back cover.Or you can rewrite some of your longer posts for the months that only have 30 days.
Hey Thumper and Ian – you guys reminded me of the great Keynesian vs Monetarist economics debates of the 70’s and 80’s. Neither Microeconomics nor Macroeconomics my strong subjects but I do remember that labour is but only one of the inputs to production. It’s well accepted that wages in Australia is high compared to the emerging economies but no higher than many other very successful developed countries. So the cost of labour is very important but on its own does not determine a country’s economic well being.
Similarly, it’s debatable but generally accepted by economists (but not necessarily the general population nor conservationists) that Australia presently does not have a large enough population to be self sustaining economically like Japan, for example, which relies more on its internal economy to generate economic growth. So if I am asked the question if we need more kiddies in our society, I would loudly shout from the rooftop – Populate or Perish! Of course, my personal opinion only ……..
Most of us believe Australia needs to be more competitive in the world markets and but at the same time targets its economic strength and efficiency. Australia needs to be smarter and more productive in what we do best. No point trying to compete with other countries that have already demonstrated their supremacy in the world markets whether itÂ’s in manufacturing of BMWÂ’s or simple goods like shoes and T shirts etc.
Bit of trivial question & answer here – did you know that prior to the recent resources boom, Australia’s biggest exports was sale of wheat, wool or manufactured goods such as Holden cars? Wrong! In fact, it was tourism followed by provision of educational services. There used to be joke in the past that a Japanese tourist in Australia has more economic worth than the weight of several bags of wheat exported.
Perhaps thereÂ’s a lesson for R&R here? We have to compete in a very saturated entertainment market here in Australia but we can only do so successfully if R&R is smart in doing what it does best, targets its strength and pitches at the right market sector? Just being expensive or cheap may not be sufficient or the key to the magic formula, I donÂ’t think.
Similarly, R&R needs more kiddies to sustain, rejuvenate and secure the music that we love so much for the future.
B) B) B)
Very well put Jitterbug...
Australia is a smart country and you're right that competing with emerging countries to make t-shirts is unrealistic. Medical, agricultural and environmental research are on top of the list of the things Aussies have lead the world in.
I always saw the potential for Australia to be like Sweden in terms of being self sufficient. OK they pay vey high taxes but so what? We bitch about hoispitals and the state of public schools maybe we should pay a bit more tax too. The money isnt going to come from the sky.. Lord knows we aint even getting rain from there!
Your observations about Japan are interesting. Yes their internal economy does prop them up but they are heavily reliant on imports so to pay for that they cash in on their work ethic. You wouldnt want to have high labour costs while having to import steel to make Kawasakis.
Australia needs children and we need to teach them how to be productive either in academic or vocational pathways. Its about bloody time the country regretted allowing technical schools to close.
As for anyone thinking labour costs in Australia are high, well that may now soon change after the high court ruled in favour of the workplace relations laws. Wait till the boom times end. We'll see just how "people friendly" these new rules are.
Comrades!
Thumper
Life is what happens to you when you're busy making other plans - J. W. Lennon
Let's not get too carried away with our definition of people with vision. With respect I think from the perspecive of vision most people pale in to insignificance when compared to Richard Pratt.
Let's not get too carried away with our definition of people with vision. With respect I think from the perspecive of vision most people pale in to insignificance when compared to Richard Pratt.
I remember doing xmas gigs for Richard Pratt at the World Trades Centre. They were very lavish events and we'd do three nights in a row to crowds of 600 people per night. He really knew how to look after his people and his work with charities is to be commended.
But he's not the only one. Sir Gus Nassal in the field of science is also a visionary and someone who accepts that sciences is full of ricks that often need to be taken. He can separate the logical from the ideological.
There are others too but its late and I cant think anymore.. LOL
Thumper
Life is what happens to you when you're busy making other plans - J. W. Lennon
Saw a inspiring program at a seminar last night. It had a lot to do with the economy your prosperity your health your relationships in fact your very being. It was simply called ...THE SECRET....If you ever get the chance. Grab it . I promise you that if you are open and receptive It will change the way you see every aspect your life forever. . PS. No, not a churchy program.
You are a funny fella, Claudedeballs! And a stirrer! You reminded me of someone else who regularly used to "con" visiting here.
But I am all for encouraging people to get off their back sides and do something worthwhile in this world. Sounds like you have an idea or two up your sleeve. Good luck! Good luck with your friendly bank manager too cos' I don't even have two spare bob to rub together.
The "Secret" seminar? Didn't know anything is secret any more in this world! Sounds like the proverbial "free lunch"?
Employers always bitch about the cost of labour and have always, for centuries, bitched about having to pay their work force.
So the current crew hires kids in suits with their MBAs who advise on how to cut back on the wages and benefits for the skilled workforce while paying the CEO $millions per year.
Talk about the kingÂ’s new clothes!
I would vote for any party who would promise to take us back to an award system.
I would also vote for a party that would put tariffs on imported products that are undercutting products that are already being grown or made in Oz.
The level playing field is just another illusion that has been manufactured by America to help support its own industries.
The greed of the powerful few is the force that is stopping Australia from looking after its own people.
My fine young jitterbug. Make up your mind . Am I ...Wally....jazza .. Icon... Mike ..Sue.. Squid....Mel ...zeek.???.No .The truth is my real name was Claude De,Nuts.(French heritage) but because the english version sounded rude I changed it to Claude De,balls.Anyway, what a pissant excuse you have for not lending me a grand..
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