Economics Editor, The Age
As Economics Editor of the CT Peter, you may feel rich, possibly you have plenty of mining stocks. By and large however, the majority Australians do not feel rich. Indeed, we become daily impoverished on a number of fronts. Here, by the promotion of bullshit vapidities.
Link has it right.The entire mining sector employs only 1.3% of the Australian population, and its multiplier effect is much lower than knowledge intensive manufacturing.We've seen mining companies see profit increases of almost 2005 over the last two years. What from? Not innovation or any other actions of themselves, but just cashing in on the China boom. The Australian public who own the resources they are deriving super profits from get just 12% of these profits (of the Iron Ore companies for example) as royalties. In the meantime, tyhe process is driving up exchange rates making it much more expensive to export value added manufacturing and making imports a lot more attractive.
It takes rare economic skill to have record current account deficits when commodity prices are so high.
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