2 speed economy
#16
Re: 2 speed economy
The idea of governments using resource profits to prop up / subsidise other industries will only be wasteful. The money should instead be invested in education and infrastructure. These are the only real insurance to a better future. Leave the rest to the markets.
#17
Re: 2 speed economy
I for one think universal healthcare should be abolished and private medical schemes should be made to flourish. If you want good healthcare you should pay for it by working hard to earn it or by taking care of your health through sensible diet and exercise etc. Why should we pay medicare if we all try to be healthy?
#18
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Joined: Mar 2006
Location: Jeddah, Saudi Arabia
Posts: 1,717
Re: 2 speed economy
I for one think universal healthcare should be abolished and private medical schemes should be made to flourish. If you want good healthcare you should pay for it by working hard to earn it or by taking care of your health through sensible diet and exercise etc. Why should we pay medicare if we all try to be healthy?
#19
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Joined: Mar 2006
Location: Jeddah, Saudi Arabia
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Re: 2 speed economy
We are fortunate that Australian governments have had the good sense to legislate and build solid super/pension funds (contrast with UK), to run solid surpluses during good times without magic accountancy in the form of public-private shams (contrast with UK) and not to allow the entire country to become as dependent on an industry as risky as financials (contrast with UK).
You are kidding right, UK has far more balanced economy than Australia that has had the good fortune to have a load of stuff to dig out of the ground. If/when China falters we are heading for a very nasty landing.
#20
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Re: 2 speed economy
#21
Emeritus Senior Minister
Joined: Dec 2010
Location: Singapore
Posts: 199
Re: 2 speed economy
Originally Posted by papilon
Yeah right, just like the USA, the highest health costs in the world.
#22
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Posts: 9,910
Re: 2 speed economy
The 2 speed economy is just startling in how obvious it is. Amazingly some will tell you that Australia somehow avoided the GFC which is of course absurd,the affects are everywhere especially in retail, tourism and manufacturing. In the coming months we will see unemployment rise in all sectors including mining, we have already seen the expected GDP growth figures for this year halved and things worldwide will be tough. Anyone who underestimates the reality of the 2 speed economy is kidding themselves.
#23
Re: 2 speed economy
So the other countries are supposedly immune from a wishful-thinking* Chinese collapse?
*cause of course let's forget and ignore that China is a centrally controlled authoritarian economy that can immediately pull out its excess cash parked in the Great Global Financial Centre of the Universe.
#24
Re: 2 speed economy
The 2 speed economy is just startling in how obvious it is. Amazingly some will tell you that Australia somehow avoided the GFC which is of course absurd,the affects are everywhere especially in retail, tourism and manufacturing. In the coming months we will see unemployment rise in all sectors including mining, we have already seen the expected GDP growth figures for this year halved and things worldwide will be tough. Anyone who underestimates the reality of the 2 speed economy is kidding themselves.
#26
Re: 2 speed economy
I suppose it should be an amount enough to make people skilled, adaptable, efficient and useful?
#27
Forum Regular
Joined: Feb 2012
Posts: 42
Re: 2 speed economy
The money is allowed to unbalance the economy, kinda obviously.
Best approach is not to allow mining companies to make a mint off it, but to put most of the wealth generated into a sovereign wealth fund, investing slowly into other industries within the country and bringing them to a world competitive level.
Best approach is not to allow mining companies to make a mint off it, but to put most of the wealth generated into a sovereign wealth fund, investing slowly into other industries within the country and bringing them to a world competitive level.
uhm, usa healthcare is the most heavily regulated industry in the US. its closer to facism than capitalism.
Last edited by nandnor; Mar 12th 2012 at 9:51 am.
#28
Re: 2 speed economy
That is a fair point, and one of which I'm very much aware, but it is still not nearly as dangerous as having your banks/shadow banks leverage up their balance sheets all around the world to the tune of several multiples of GDP. AND at the same time failing to put anything aside for a rainy day, or even for tomorrow's civil service pensions.
#29
Forum Regular
Joined: Feb 2012
Posts: 42
Re: 2 speed economy
More commonly called "The Dutch Disease" when connected with resource exploitation. Lasts as long as the resource boom does, and takes carefully management if you are not to derail your whole economy. Needless to say, not being well managed in Oz.
http://en.wikipedia.org/wiki/Dutch_disease
http://en.wikipedia.org/wiki/Dutch_disease
#30
Re: 2 speed economy
yes! i can buy cheaper tv's and holidays and petrol thanks to the strong AUD. those who refuse to adapt to the new economic environment are doomed to lose.