*take nothing for granted!
Unless otherwise indicated all photos © Richard McKie 2005 - 2015

Who is Online

We have 78 guests and no members online

Translate to another language

Article Index

 

 

Thomas Carlyle coined this epithet in 1839 while criticising  Malthus, who warned of what subsequently happened, exploding population.

According to Carlyle his economic theories: "are indeed sufficiently mournful. Dreary, stolid, dismal, without hope for this world or the next" and in 1894 he described economics as: 'quite abject and distressing... dismal science... led by the sacred cause of Black Emancipation.'  The label has stuck ever since.

This 'dismal' reputation has not been helped by repeated economic recessions and a Great Depression, together with continuously erroneous forecasts and contradictory solutions fuelled by opposing theories.  

This article reviews some of those competing paradigms and their effect on the economic progress of Australia.


 

In Australia economic thought took a couple of U-turns last century

For its first one hundred and seventy years the economy of New South Wales (and then Australia as a whole after 1901) was extraordinarily vulnerable to climate and agricultural trade cycles.

 fluctuations

 

Phil Ruthven IBIS: ‘The chart shows Australia’s economic progress over 140 years... ‘The volatility was enormous both before and during the Industrial Age (1865-1964) largely due to weather. Agriculture remained over 15% of our GDP for most of that period…  ‘a 25% fall or more in output would slice 4% off the economy by itself - with a domino effect through the food & fibre input-output chain - causing a recession. We had 27 such years or one every 3-4 years...

 

During the 20th century Australian governments experimented with the full spectrum of government interventions to develop manufacturing; both to reduce our dependency on agriculture and to increase Australia’s military resilience.  To grow and protect manufacturing Australia applied, then abandoned: selective tariffs; publicly owned businesses; and enforced government purchasing preferences.  

Until the start of the 20thcentury the political differences in pre-federation Australia were polarised around the issue of ‘free trade’ verses protection (NSW versus Victoria).

The electoral success of the Australian Labor Party (in 1910) (following the Marxist social analysis in the mid 19thcentury, and English Fabianism) led to a new polarisation around worker’s rights and the socialist alternative to capitalism; retaining a strong protectionist sentiment. With the split in the Labor party, at the start of the ‘Great Depression’, a new ‘United Australia Party’ (in government from 1932 to 1941) formed around ex Labor Treasurer Lyons and Labor splinter groups, together with the older establishment dominated parties (both free traders and protectionists).

Thus by the middle of the century, both major parties had elements combining the older protectionist movements, as well as elements supporting socialism and public ownership. Protection and government owned enterprise became an accepted reality on both sides of politics, reinforced by industrial mobilisation during two world wars.

By the mid 1960’s, under the protection of import tariffs and direct government involvement in economic production, manufacturing in Australia had grown to become the largest and most productive sector in the economy, long supplanting agriculture, services and mining.

But as the Menzies/ McEwen era drew to an end in the late 1960’s it was already apparent that much of this manufacturing and government enterprise was inefficient and unable to compete internationally.  Within the new Universities, post-war academic sentiment was swinging towards Neo-Keynesian (eg Samuelson) or Monetarist (eg Friedman) economics together with a strong belief that freer markets would deliver greater economic efficiency and administrative simplicity.  The intellectual climate had changed. 

Free trade and free market arguments prevailed, in both major political parties, and the progressive withdrawal of protection followed, along with the disposal of government owned businesses and local buying requirements.

 

Add comment


Security code
Refresh


    Have you read this???     -  this content changes with each opening of a menu item


Travel

Bali

 

 

 

 

 

At the end of February 2016 Wendy and I took a package deal to visit Bali.  These days almost everyone knows that Bali is a smallish island off the east tip of Java in the Southern Indonesian archipelago, just south of the equator.  Longitudinally it's just to the west of Perth, not a huge distance from Darwin.  The whole Island chain is highly actively volcanic with regular eruptions that quite frequently disrupt air traffic. Bali is well watered, volcanic, fertile and very warm year round, with seasons defined by the amount of rain.

Read more ...

Fiction, Recollections & News

Through the Looking Glass

 

 

 

 

 

I'm seeing on TV senior politicians, including the Liberal PM and involved Labor Victorians (bi-partisan), gathering in Morwell in Victoria to announce that jobs in the Latrobe Valley have been saved by a Japanese consortium that will build a pilot plant to convert brown coal to hydrogen. Read Here...

I had to pinch myself to check that our screen had not somehow turned itself into Lewis Carroll's looking glass and sucked me through to the other side.

Fans of the Reverend Dodgson's (Lewis Carroll's) work will recall some 'weird shit' in Wonderland like: Alice growing and shrinking; a disembodied cat coming and going; and babies turning into pigs.  But these adventures are put into the shade by Alice's subsequent experiences: Through the Looking-Glass

Hydrogen from coal (carbon) - really?  Surely they mean hydrogen from water. 

Read more ...

Opinions and Philosophy

World Population – again and again

 

 

David Attenborough hit the headlines yet again in 15 May 2009 with an opinion piece in New Scientist. This is a quotation:

 

‘He has become a patron of the Optimum Population Trust, a think tank on population growth and environment with a scary website showing the global population as it grows. "For the past 20 years I've never had any doubt that the source of the Earth's ills is overpopulation. I can't go on saying this sort of thing and then fail to put my head above the parapet."

 

There are nearly three times as many people on the planet as when Attenborough started making television programmes in the 1950s - a fact that has convinced him that if we don't find a solution to our population problems, nature will:
"Other horrible factors will come along and fix it, like mass starvation."

 

Bob Hawke said something similar on the program Elders with Andrew Denton:

 

Read more ...

Terms of Use                                           Copyright