Happily, they do not have to, because such a country already exists: Australia

Discussion in 'Australia' started by barryqwalsh, Oct 28, 2018.

  1. barryqwalsh
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    barryqwalsh Gold Member

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    What is the biggest problem facing the US? Or Japan? Or Britain? Or France?


    Opinions vary, naturally, but some worries crop up again and again. Those of a materialist bent point to decades of slow growth in median incomes, which has bred disillusion and anger among working people.
    Fiscal hawks decry huge public debts, destined to grow even vaster as ageing populations rack up ever bigger bills for healthcare and pensions. Then there is immigration, which has prompted a furious populist backlash in the US and Europe. That hints at what, for many, is the most alarming trend of all: the lack of any semblance of a political consensus about how to handle these swelling crises.


    Rising incomes, low public debt, an affordable welfare state, popular support for mass immigration and a broad consensus on the policies underpinning these things — that is a distant dream in most rich countries. Many Western politicians could scarcely imagine a place that combined them all. Happily, they do not have to, because such a country already exists: Australia.


    Perhaps because it is far away from everywhere, or has only 25 million inhabitants, or is seen mainly as a habitat for cuddly marsupials, it attracts relatively little attention. But its economy is arguably the most successful in the rich world. It has been growing for 27 years without a recession — a record for a developed country. Its cumulative growth over that period is almost three times what Germany has managed. The median income has risen four times faster than in the US. Public debt, at 41 per cent of GDP, is less than half Britain’s.



    Luck has had a hand in these feats, to be sure. Australia is blessed with lots of iron ore and natural gas, and is relatively close to China, which hoovers up such things. But sound policymaking has helped, too. After the last recession, in 1991, the government of the day reformed the healthcare and pensions systems, requiring the middle class to pay more of its own way. The result is that Australia’s government spends just half the OECD average on pensions as a share of GDP — and the gap will only widen in the years ahead.



    Even more remarkable is Australia’s enthusiasm for immigration. About 29 per cent of its inhabitants were born in another country — twice the proportion in the US. Half of Australians are either immigrants themselves or children of immigrants. And the biggest source of immigrants is Asia, which is fast changing the country’s racial mix. Compare that with the US or Britain or Italy, where far smaller inflows have generated hostility among a big portion of the electorate — or Japan, where allowing foreigners to settle in any numbers is a political taboo.
    In Australia both main parties argue that admitting lots of skilled migrants is essential to the health of the economy.



    These achievements are not without their flaws. The private investment funds through which Australians are obliged to save for their retirement have been charging excessive fees, leaving pensioners poorer than they should be. And as welcoming as Australia is to immigrants arriving through normal channels, it treats those who try to come by boat without the proper paperwork with needless severity, packing them off to remote islands in the Pacific.



    Moreover, there are reforms that Australia should be undertaking and is not. Aboriginal Australians suffer from enormous disadvantages, which a succession of governments has barely dented. Global warming is clearly causing grave damage — droughts have become more frequent and more severe, among other dismal consequences — yet Australia has done almost nothing to curb its emissions of greenhouse gases.



    Nonetheless, Australia’s example shows that reforms considered impossible elsewhere are perfectly achievable. Democrats in the US assail most proposals to restrain the rising costs of public pensions or healthcare as tantamount to throwing grannies off a cliff; in Australia it was the Left that pioneered such policies.



    The Labor Party sold obligatory private pensions to unions as a rise in benefits, since it is technically employers who are required to make regular payments into investment funds on their workers’ behalf. The party also made sure to retain a basic public pension, which is paid only to those who have not managed to build up adequate personal savings.



    By the same token, it is quite possible to maintain popular support for mass immigration, even from culturally dissimilar places. But it is essential to give voters the sense that their borders are properly policed and that there is no free-for-all. Again, bipartisanship is important. It was a right-wing government that first allowed immigration from Asia on a big scale, admitting lots of refugees from Vietnam in the 1970s.



    Australia’s political system rewards centrism. All eligible citizens must vote, by law, and those who might not bother to turn out otherwise tend to plump for mainstream parties. There is no need to rally supporters to the polls by pandering to their prejudices. Since everyone has to show up, politicians focus instead on winning over the wavering middle. The system of preferential voting, whereby Australians rank candidates in order of choice rather than picking just one, also exerts a moderating influence.
    The irony is that, just as the benefits of this set-up are becoming so obvious, Australians appear to be growing disenchanted with it. Voters express growing doubts about the effectiveness of government. It has not cost the two main parties many seats, thanks to the electoral system, but their vote share has fallen by 20 percentage points since the 1980s. Politicians, conscious of voters’ disgruntlement, have also become increasingly febrile.



    They are constantly turfing out prime ministers, in the hope that a new face will boost their party’s standing with the electorate. Some in the ruling Liberal Party, although not the current prime minister, have begun to call for a reduction in immigration, undermining decades of consensus. Ambitious reforms have become rare. The rest of the world could learn a lot from Australia — and Australians could do with a refresher course, too.



    Nocookies
     
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  2. Mousterian
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    Mousterian Gold Member

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    Turfing Australian Prime Ministers is driven by factionalism and ambition in the Parlimentary parties.
    The Australian people do not like this revolving door of leadership. and punished the ruling coalition in a stinging rebuke when th latest casuality spat the dummy and quit the Parliament.
    In the ensuing by-election, the ruling party lost the seat to an independent, after being a 'safe' seat for decades, with a 19% swing. This is a repeat disastrous elections seen after previous assassinations when a popular leader has been shown the door.Them Ozzies don't like being told what's 'good' for them.
    Shame we have become a nation of dogmatic idol-worshippers.
     
  3. Mousterian
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    Mousterian Gold Member

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    Interesting the Trumpanzees don't want to touch a thread comparing the USA and Australia.
    When you look at universal health-care and the pension system, and gun reform, you might understand this shyness.
     
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  4. Mr Clean
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    Mr Clean Gold Member

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    Yeah, but they drive on the wrong side of the road.
     
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  5. Karl Rand
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    Karl Rand Senior Member

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    And often think with the wrong side of their brains.
     
  6. fncceo
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    fncceo Gold Member

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    I spent a great deal of my young adult life in Australia. I worked there as a middle aged executive as well. I have almost as many friends there as here and I keep up with the goings on there.

    Australia is unique in many ways, a huge country with a tiny population relative to its size. However, because of its lack of national infrastructure, that population in crowded around five urban centers with population density similar to America.

    Australia has been trying to grow its population in the past few decades with an aggressive immigration policy. But, it hasn't always been so. The immigration policy of Australia was called the 'White Australia Policy' up into the '70s. Today, there is a growing belief among urban voters that they have moved too fast with that immigration. Because immigrants seem to settle in the top two urban centers, the infrastructure in those cities is at capacity and those cites are spending a huge part of their state budgets trying to grow it and not keeping up. A bill was introduced into Federal Parliament just last week to cut Australia's immigration numbers significantly.

    Immigration is a big part behind Australia's growing property boom. Property prices have more than doubled in less than two decades largely on the back of immigration. But, wages have not risen accordingly. Wage growth has been nearly stagnant for going on ten years. This has caused many young Australians and first-time-home-owners to be priced out of the market.

    Australia's economy is closely tied to the mining and agriculture sectors. An unprecedented building and development program in China and the expansion of Chinese industry has been good for Australia's economy because many of the raw materials (including vast amounts of coal) come from Australia. Wool and meat exports also contribute to the economic boom. However, fewer and fewer of Australian work in those sectors. The biggest employment sectors in Australia are health care and social services, followed closely by retail sails. Manufacturing makes up a small part of Australia's employment.. Because of increasing union demands, foreign car makers have all pulled out of Australia and even the home-grown brand, Holden, will cease being made in Australia soon.

    Australia has a high minimum wage, US$13 an hour. But, 25% of Australian workers are classed as 'casual'. Which means they cannot work more than 35 hours a week and that they receive no paid holidays, sick leave, or any benefits.

    Much is said about Australia's public health system. However, rising health costs have increased while Medicare payments to medical providers have not. This has caused a big co-pay gap between what Medicare pays and what the patient must pay. The gap has grown to the point that a few years ago, Australia introduced a policy where anyone who doesn't have private health care insurance is penalized on their income taxes. Private health care insurance plans in Australia are more expensive and cover less than those in America because of the smaller population to share the costs.

    From the '90s to the middle of the '00s, Australia suffered a costly national drought. A lot of people blamed that on man-made climate change. However, as it turns out. Most of Australia's water catchments were laid out in the first part of the 20th century (Modern Australia is a young country). Natural changes in rain patterns meant that while as much or more rain was falling, it wasn't being caught in the damns and catchments and that infrastructure was drying up. When rain patterns returned to normal in the mid '00s, the drought ended.

    Australia, is a great country. It's more similar to America than any other country I've ever lived. It has many advantages, but very few of them could be easily imported to another country with completely different demographics as a solution to their problems.
     
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  7. gtopa1
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    gtopa1 Platinum Member

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    Huh? I love that knot you showed me but the POLICIES of President Trump are winners. Economically they're unleashing good old American enterprise and drive. If the Dems can continue those policies then GREAT, but will they?

    As for Australia? Then fiscally responsible (Classical) Liberal and National Parties have always delivered the Fiscal goods; the (Left) Labour Party not so much. Stifling Human Enterprise is a real problem for them.

    Re "Universal" Health care. If one is poorish then you get support; if not and you aren't in a Private Fund then you get a tax penalty that is quite substantial. Most Doctors now charge a co-payment about forty percent of the Bill just for a Consultation. It's a system increasingly becoming more and more user pays.

    Greg
     
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  8. gtopa1
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    gtopa1 Platinum Member

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    Huh? Where did you live? When? I'm in Toowoomba though I have a boat at Mooloolaba and another in the Brisbane Rive....both Sailing boats about 30ft. I grew up on the Gold Coast and still share the family home there with two of my brothers.

    Greg
     
  9. fncceo
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    fncceo Gold Member

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    Went to secondary in Kew, Victoria. I returned back in the '90s as an exec for Worldcom in Sydney CBD.
     
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  10. bear513
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    bear513 Diamond Member

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    I thought you were a cop?

    .
     

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