Right now it seems a no-brainer: invest in Australian mining. Well, maybe this is not good advice. According to a smart young Australian with whom I chatted this week, Australia is headed for decline, decay, and mining investment disaster.
His point is that in the next ten years, Australia will slip from a top mining country to a has-been. He points to Liverpool, England that was once a vital economic force and which over ten years and more just slipped into nothingness. Trade unions took over, the entrepreneurial spirits moved to London and the colonies, and the city and its economy went into irreversible decline.
His point is that the same is happening in Australia. The government is weak, is pandering to the least of the people, is raising taxes to the point of punitive, and is failing to building infrastructure.
He asked me point blank: “Why should people of ability like me stay and put up with the restrictions on our talent? Why should we not go to Asia, Chile, even Canada where mining is still a booming enterprise? Why should we stay in Australia to maintain a lopsided distribution of energy and focus? Why should we hang around while the government vacillates and caves into the basest and greediest of the desires of the lazy and spoilt?”
He stated: “Mining has distorted all Australia. Now everybody believes it is their right to earn $100K a year without working. The spoilt forget that the worker getting $100K s flying-in and flying-out and is working very hard for that money. The greedy forget that talent, skill, education, and very hard work are what make big income possible and real. There is a growing resentment at the hard-working and a growing demand for equality for sitting at home moaning, grousing, and writing facile articles!’
I hope that he is wrong. Bit I know he is smart, hard-working, and committed. if he thinks thus, do others think thus. Is it only foreign bloggers like me who dare to broach the topic?
Is Australia just another bubble waiting to burst at the Chinese realize they have too many buildings built at government expense by the sons of those in power? Recent announcements that iron ore is not in as much demand as hitherto in China makes you wonder.
Let me have your take on this perspective as Australia raises taxes on mining.