View Single Post
Old 12-03-2012, 05:55 PM   #509
deepsepia
Widget Flummoxer
 
deepsepia's Avatar
 
Join Date: Jul 2007
Location: Upper left corner
Posts: 3,674
Thanks: 15,772
Thanked 30,901 Times in 3,657 Posts
deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+deepsepia 100000+
Default

Quote:
Originally Posted by FatesWarning View Post
I live in Australia, its a great place, But the cost of living has got out of hand, especially, food, petrol, utilities, at least beer is still relatively inexpensive.
Well, the mining tax would have helped.

The problem that Australia is facing is somewhat like Norway -- huge wealth from extractive industries (oil in Norway, coal and ore in Oz, mostly) distorts everything else.

You can see the impact of the mining wealth on overall price levels in a comparison of cost of living between NZ and Oz. NZ is much cheaper, and its still a very productive economy, but there's no river of money from one commodity warping everything else.

Natural resources wealth really is a "mixed blessing" -- because it kills competitiveness in every other sector.

The mining tax would have addressed that somewhat, but Rinehart and her cronies managed to sink it . . . too bad.
deepsepia is offline   Reply With Quote
The Following 11 Users Say Thank You to deepsepia For This Useful Post: