Wednesday, April 08, 2020

Autarky - flavour of the 2020's?

Let's draw out some Consequences of the 'all for it' themes - all varieties of autarky - a common characteristic of medieval economies:
  1. No more foreign idiots = between 50 and 75% of the tourism industry, employing 400K workers, is toast. Add 'em to the welfare rolls or retrain 'em - all Gubmint cost, paid for by You Know Who.
  2. No Importing Australian produce = no metals (Li, Cu, Fe, and the rare earths being prospected at Dubbo), so kiss goodbye to solar panels, EV's and Big Batteries. As for wheat, well, Oz grows most of the hard wheat used in our bread.
  3. No more Foreign-owned firms.  But these include every Car, Machinery, Household Appliance manufacturer, amongst many others, so good luck when your tractor goes into Limp Mode in the middle of harvest and the firms have Departed our fair isles.
  4. Foreign minimum wage temporary work visa workers go home - and are replaced by automation, manufactured either offshore, by foreign-owned firms here, or local firms using fairly much exclusively foreign-made parts. We seem, unaccountably, not to have chip fabs or bearing factories....
  5. Dairy pays for its alleged externalities - via the plethora of New Taxes sure to come our way, and what does that do to the prices of dairy products locally? So who pays? Check a mirror. And who is Excluded because of high prices? The poor and children.
Autarky seems to be flavour of the month. Especially to commenters who clearly haven't Thought it Through.....

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