Templar wrote on Aug 19
th, 2011 at 1:29pm:
Protectionism is never the answer, part of globalisation is the diversification of our economies into what we are best at, that is why the Western world has seen a cascade of jobs going off-shore, these low-paid menial jobs do not require any special skills. Australia has a relatively well educated population and so instead of wasting their talents in these jobs people are now working in more specialised industries, yes there is short term pain but long-term we are better off.
That's the official mantra, but it's way off reality. What our manufacturing and agricultural competitors are best at is getting workers to slave for a bowl of rice a day. I say fix tarriffs to take that into account. If they raise wages we should lower tarriffs. What are these 'specialised industries' that will take up the slack? Once Switzerland could set itself up as the bank on the mountain. Those days are long gone. China is manufacturing but its financial sector is growing just as fast.
Quote: Also free trade will eventually even out the worlds disparities and create an even playing field again, protectionism will only continue 3rd world poverty and resentment of us.
Wrong, what keeps Africa poor is the ability of wealth to exploit poverty along with crippling insecurity. What might work and also alleviate refugee problems is for rich countries to lease land from the poor and provide security and jobs. Would be refugees could work in these autonomous zones and prove their suitability for citizenship. Connective tissue between the host and autonomous zone would grow along with rent for the host nation. It would in effect be an engine for growth. The model is Hong Kong.
Quote: We have not lost these industries forever, we are essentially out sourcing them at the moment and when it become economically viable again they will re-establish. Factories closing and people crying always looks bad but our long-term future and prosperity depends on us being as efficient as possible and that means using our population in the most profitable way possible.
Guess what, there is no 'WE'. There are multinational corporations, a week ago Apple could put its hand on more cash than the US government. They've grown big by using Asian sweat shop labour. What you're saying is that when workers in Australia have learn't to work for a bowl of rice they'll come back. Well whoopy do.
Outsourcing is a criminal enterprise. Workers are sold an idea that they will grow with the company. That they ARE the company. An arrangement that goes quite often through generations. Then they get dumped by the fat cats on top, (after buiding the company into a multi national) That's fraud.
Same thing applies to the agricultural sector. Farmers invest their lives, as only farmers no how. They do that with an understanding of the rules. Then as FriYAY has pointed out, the rules get changed. For a hundred years Australia has protected farmers from exotic pests and diseases, just for this generation to throw out the baby? To suit the city suits? Give over, that's not a fair go.