Dana factory shut down in western sydney

[Beavis]

I wasn't saying we don't have the technology, we have plenty, we are just to damn expensive because we pay our retards too much to perform manual jobs (sorry retards). We should stick to 'high-value' manufacturing that other countries, i.e. stay away from commoditised manufacturing that china and india can do.

Commoditized manufacturing is better than some things, though -- the biggest example of which is natural resource extraction and supply.

In almost all cases, if you plot the value of natural resources (say timber, mineral sands, fish, metals, fruit, cotton, etc.) over the course of 50 years the trend is very obviously downward-sloping. There are exceptions to this, of course -- such as rare and precious metals (like gold and silver and platinum), as well as those difficult to refine (such as aluminum/aluminium) -- but generally, if you want your economy to be able to grow in the long-term you want to stay away from these. Or, better yet, dig the ore out yourself, smelt it yourself, then make it into a car yourself.

Then sell the car overseas.

[260BC]

One good example of what I'm getting at is the cost of real estate. Housing for workers, buildings for business. A lot of that cost involves the cost of land. The cost of land is largely the result of government policies etc as I've already said.

So how can you expect workers to pay say $300 a week rent if they are not earning an appropriate income? The cost of land is but one aspect, I ain't going to try to run through them all.

[Dave]

Commoditized manufacturing is better than some things, though -- the biggest example of which is natural resource extraction and supply.

In almost all cases, if you plot the value of natural resources (say timber, mineral sands, fish, metals, fruit, cotton, etc.) over the course of 50 years the trend is very obviously downward-sloping. There are exceptions to this, of course -- such as rare and precious metals (like gold and silver and platinum), as well as those difficult to refine (such as aluminum/aluminium) -- but generally, if you want your economy to be able to grow in the long-term you want to stay away from these. Or, better yet, dig the ore out yourself, smelt it yourself, then make it into a car yourself.

Then sell the car overseas.

yeah, but the free market decides what the country produces, if there is money in resources then companies will start to 'manufacture' resources. The descisions about allocation of the countries human resources are not made by the govt they are made by the market, generally, unless we switch to communism.

No one country will do all those things in the most efficient way, therefore the supply chain of the car you speak of will be allocated (by the market) to those countries that are most efficient at doing them.

If you look at commoditised manufacturing you would see a similar 'price' curve.

[Dave]

One good example of what I'm getting at is the cost of real estate. Housing for workers, buildings for business. A lot of that cost involves the cost of land. The cost of land is largely the result of government policies etc as I've already said.

So how can you expect workers to pay say $300 a week rent if they are not earning an appropriate income? The cost of land is but one aspect, I ain't going to try to run through them all.

what you are desciribing is a symptom, not a cause, hence the chicken or egg statement. Price is controlled by both demand and supply, if peoples incomes rise there will be a natural increase in overall demand, without a significant increase in supply then the 'equilibrium' price of all goods will increase. The cost of a goods to manufacture, in whole of economy terms, has nothing to do with the cost to produce. It is purely a function of supply and demand. This is a bit abstract, but you need to think not in terms of one off products and more in terms of the overall economy.

In saying that, the cost of housing is directly impacted by the government due to planning and supply 'management' rather than letting the free market decide what housing is required where.

[260BC]

In a free market supply and demand rules, since when was there a free market in AU though? Government at all levels controls/influences both supply and demand, to a huge extent too, real estate is just an easy to understand example.

We are way way over governed and over regulated for true market forces to apply.

[Dave]

yeah, we are in a communist country

[260BC]

I'm not saying what we have is right or wrong, after all our banks don't go bust so we must be doing something right. Was merely responding to your 'overpaid workers' comment, errr, does that make me a Commie? Errr, may have to rethink this

[Captain_Slow]

'Overpaid' perhaps in the context of what workers doing similar jobs in less-nice countries overseas are getting - I don't think anyone's suggesting massive pay cuts for manufacturing workers to improve their international competitiveness.

The point is that if you want to manufacture in a first world country then you need to pay first world wages and deal with first world costs; and it's probably no surprise that countries that pay lower and have lower costs are going to be able to undercut you.

Which really leaves the only realistic option as companies closing shop here and opening up overseas.

[Dave]

I'm not saying what we have is right or wrong, after all our banks don't go bust so we must be doing something right. Was merely responding to your 'overpaid workers' comment, errr, does that make me a Commie? Errr, may have to rethink this

do you even read what I post before replying?

[260BC]

do you even read what I post before replying?

Yeh, you keep denying what the reality of the situation is in this country

[BigMuz]

What we need is a sub class of migrant workers to operate our factories and do our menial jobs at third world prices. Win/ Win.

[Dave]

What we need is a sub class of migrant workers to operate our factories and do our menial jobs at third world prices. Win/ Win.

can I help you implement this idea, preferebly they bring hot women with them

[Dave]

Yeh, you keep denying what the reality of the situation is in this country

So are you saying Australia's economy does not abide by the law of supply and demand?

[jesus]

technology in Asia is good and getting better, the workforce is cheap

all the shit no brainier jobs are going there, cause its fucking cheaper, no company gives a fuck about any country, they would make the shit in Nigeria paying $1 a day if the infrastructure was there to do so

all these shit cunts become unemployed cunts, the fat over regulated overstaffed government needs to raise taxes and revenue raising schemes to support all the shit cunts who have a "right" to free money because they chose to smoke weed in high school instead of going to class. and the smart cunts who have good jobs will pay for it.

fucking tax is already at what, 55c in the dollar for the top bracket!? what the fuck? whats it going to go to, 60c, 70c? or how about more extra taxes like higher import duty, fuck it why not export duty? how else can the goverment steal that last 45c you have? higher regos, oh and after they pay there rego lets put tolls on the actuall roads, more speed cameras, higher priced booze, higher priced smokes


sorry, rant over

[devo]

So are you saying Australia's economy does not abide by the law of supply and demand?

are you saying that govt policies don't have a massive influence on that supply and demand?