Sure Chris, we need to economically diversify, in order to give us a bit more of a buffer against the prospect of our mining boom ending or winding back.

But there are other huge factors that have gone unmentioned in this article:

We need to break free of growth economics. That is: the utterly absurd idea that we’ve got be constantly expanding our economic turnover and expanding our population in order to do this.

We’ve also got to get the bejeezus off of our addiction to oil. Sharply rising fuel prices, let alone shortage of supply, threaten to skittle our economy and cause social upheaval much more so than any slow-down in China or whatever.

If we uphold current economic practices or anything like them, we are BOUND to come up against huge barriers and suffer enormous consequences in the near future.

Ludwig,

Do not disagree with you. We certainly cannot keep going on forever relying on population and economic growth, although this is indeed the easiest path for policy makers (as it has always been).

I wouldn’t rely on anything from Andrew Leigh. He is an academic who has said nothing while almost everything inside his university is now imported. So much for universities helping to overcome the trade deficit.

About the only thing universities are now doing is producing workforce fodder for multinationals.

Not sure why the writer is worried about exports when he is really talking about domestic demand.

Processed food and beverage industry turns over between $70 and $75 billion per year. Growth in the value of output has averaged around 2 per cent a year over the past ten years.

Due to reciprocal trade agreements we import about $6 billion of food stuffs (wine and cheese) from New Zealand. The problem isn't food or even demand, it's why were swimming in bloody sauvignon blancs and fine cheeses.

Let's hope the new political 'paradigm' lends itself towards some rigorous debate and assertive decision-making in terms of economic planning required to deal with the matters highlighted here; Away from the easy, safe, populist approach we've endured for the past 15 years.

I think this would be most possible if we had Turnbull back as opposition leader. Unfortunately, Abbott is just going to be playing obstructionist politics to force an early election or have the independents switch their support to give him the prime-ministership.

Cheryl,

good points. I obviously can break down data further to see which industries are under greatest pressure.

However, I would note that imports have an effect of offering domestic consumers cheaper goods which places further pressure on domestic producers to cut costs even further to compete against imports.

Even for cheeses and wine, we should be concerned with their wealth generation in regards to both their export potential and domestic consumption, especially given trade agreements.

After all, exports are seen as Australia's best way to maintain national wealth. During the 2000-2008 period, the growth of global merchandise exports (value) exceeded the growing value of global merchandise production (5 to 2.5 per cent)