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The 20th Century economic debate

 

For much of our history NSW (then, after 1901, Australia) has been extraordinarily vulnerable to climate and agricultural trade cycles.

 

 

‘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...’

Phil Ruthven IBIS 

 

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 20th century 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 19th century 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 from1932 -1941) formed around Lyons and Labor splinter groups, together with elements of the older establishment 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 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 at the end of the Menzies/ McEwen era, in the late 1960’s, it was apparent that much of this manufacturing and government enterprise was inefficient and unable to compete internationally. With the new Universities, post-war academic sentiment was swinging towards Neo-Keynesian (eg Samuelson) or Monetarist (eg Friedman) economics and the intellectual climate 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.

In 1967 the first minerals boom and a large increase in foreign investment lead to the dollar’s decoupling (un-pegging) from the pound sterling. Its strong upward revaluation followed.  Together with the Federal Government’s determination to dismantle protection, this contributed to rapid economic restructuring.

 

 

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Travel

The United Kingdom

 

In May and Early June 2013 we again spent some time in the UK on our way to Russia. First stop London. On the surface London seems quite like Australia. Walking about the streets; buying meals; travelling on public transport; staying in hotels; watching TV; going to a play; visiting friends; shopping; going to the movies in London seems mundane compared to travel to most other countries.  Signs are in English; most people speak a version of our language, depending on their region of origin. Electricity is the same and we drive on the same side or the street.  Bott Wendy and I have lived in London in previous lives, so it's like another home.

But look as you might, nowhere in Australia is really like London.

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Fiction, Recollections & News

The Meaning of Death

 

 

 

 

 

 

'I was recently restored to life after being dead for several hours' 

The truth of this statement depends on the changing and surprisingly imprecise meaning of the word: 'dead'. 

Until the middle of last century a medical person may well have declared me dead.  I was definitely dead by the rules of the day.  I lacked most of the essential 'vital signs' of a living person and the technology that sustained me in their absence was not yet perfected. 

I was no longer breathing; I had no heartbeat; I was limp and unconscious; and I failed to respond to stimuli, like being cut open (as in a post mortem examination) and having my heart sliced into.  Until the middle of the 20th century the next course would have been to call an undertaker; say some comforting words then dispose of my corpse: perhaps at sea if I was travelling (that might be nice); or it in a box in the ground; or by feeding my low-ash coffin into a furnace then collect the dust to deposit or scatter somewhere.

But today we set little store by a pulse or breathing as arbiters of life.  No more listening for a heartbeat or holding a feather to the nose. Now we need to know about the state of the brain and central nervous system.  According to the BMA: '{death} is generally taken to mean the irreversible loss of capacity for consciousness combined with the irreversible loss of capacity to breathe'.  In other words, returning from death depends on the potential of our brain and central nervous system to recover from whatever trauma or disease assails us.

Read more: The Meaning of Death

Opinions and Philosophy

Energy Solutions

 

 

 

 

Most informed commentators agree that Australia needs a better mix of energy sources.  We are too dependent on fossil fuel.  This results in a very high rate of carbon dioxide production per capita; and this has international and domestic implications in the context of concerns about climate change.

Read more: Energy Solutions

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