"Fiscal Responsibility is always determined by the size, length and influence of the Booms and the Busts."
Australia has had its share of both and they have been heavily reliant in the past on progressive industries such as agriculture, manufacturing, education and technology.
These sectors are based on creation, contribution and growth.
The last economic booms however have been based on highly regressive industries like mining, Insurance and the finance. These sectors are based on non-reusable assets, speculation and gambling.
The largest economic boom in recent history was that of the united states just after the first world war. The main keys to the Boom were the progress of technology and increased consumer demand. There has been a clear link between prosperity and social change.
The Main causes for the Boom were
Isolationism – The government kept out of foreign affairs, and limited foreign competition by imposing high import tariffs.
Technology - especially in the electrical, chemicals and film industries.
Mass production - especially in the automobile industry. Manufacturing
Hire purchase - allowed people to purchase new gadgets such as vacuum cleaners, washing machines and refrigerators. Borrowing increased the amount of money available to spend, and, therefore, the demand for goods. Finance
Shares - firms learned to raise money for expansion by selling shares on the Stock Exchange - this was to cause problems later. But those issues were curtailed by the introduction of Glass-Steagall (Regulations on Wall Street trading) then the problems returned with the abolishment of Glass-Steagall. Finance
During all of Australia’s economic booms the following features have been constant, a strong increase in GDP, remuneration (incomes), land and other assets. Large and risky investment in new sectors, generally the power shifts towards labor due to full-time employment and the public enjoys greater social progress monetary and non-monetary, as well as legislative.
Our distance from the rest of the world and our small population has already established a large amount of isolationism, however foreign investment in real estate to major land and asset holding has increased twofold from 1.2% nationally to 2.6% nationally.
If Australia seeks to maximize its market returns it needs to look its economy and shift its investments into progressive industries again.
Where are we now?
Even though our mining sector has suffered a major collapse, the mining sector is still our biggest contributor to GDP.
Contribution by Industries highest to lowest annually
Financial and Insurance
Info, media and telco
Public admin and safety
Electricity, gas etc
Transport, postal etc
Accommodation and food
Arts and recreation
Admin and support
Professional scientific and technology
What are the Key industries to creating an economic boom?
The following industries provide the biggest return on investment
Professional scientific and technology (18th currently)
Education (9th currently)
Manufacturing (19th Currently)
Agriculture (16th Currently)
Arts and recreation (15th Currently)
Finance and insurance (2nd currently)
These industries provide the greatest benefits for national security and are currently the growth industries internationally. This is why several leading economists have warned that Australia's economic landscape is currently high risk and have downgraded our credit ratings due to our current economic road map. Our Finance and insurance industries are heavily reliant currently on our superannuation investments.
So how can a Local Council contribute to an Economic Boom?
Well a local council is required by law to act in the fiduciary interest of the rate payer's. Its economic investments will need to follow those with the greatest returns.
Technology through investments in smart technology to increase productivity and returns.
Education of the community to ensure they become optimally productive, Learn4life programs, cultural reconciliation and education programs.
Manufacturing and agriculture through Markets, car boot sales and research and implementation of Farmer's markets,
Art through cultural recognition and employment and recreation centers to increase productivity, tourism, safety and security.
Safety plans to lower the impact of insurable events research into future investment into a community banking facility.
When a local economy is supported by its Council the revenue and benefits to both are created.
We need to be wary of the neo-liberal economic idea's of privatization, fiscal austerity and deregulation and free trade that lead to the high unemployment, massive monopolies and duopolies, high levels of both corporate, financial corruption and massive corruption in government/s.
"We need to maintain a progressive stance on return on investment, education and professionalizing our work force to be more productive and to reform our internal governance to ensure greater transparency, communication, consultation and creation of better solutions."
Written and Authorized by Sam Wilks. The views included may not be those of others mentioned in the article but are those of Sam Wilks. If you have other idea’s feel free to comment below. Idea’s and differing opinion is recognition of a free and just democratic society. A Society I am happy to live in. Please however try not to be abusive or discriminative, you may be. But if I feel that your opinion may be harmful or is reported as being harmful, I will delete it.
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