The Forum > General Discussion > If you were PM...
If you were PM...
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Exactly, who would? In reality people would simply not be able to
afford many of the consumers goods, which they take for granted now.
Australia has a mere 20 million, which is far too small to have
economies of scale on many products. We have been through all
this before in Australia, when tariffs first came in. You landed
up with lazy, fat manufactuters, making many shoddy products, with
consumers having little choice but to buy them, as tariff walls
protected the locals. That is exactly how the Melbourne
establishment became so rich, at the expense of consumers, farmers
and other exporters, who had to pay through the nose for their
inputs. That made the latter even less competitive.
You can legislate all you want, if there are not enough competitors,
there won't be competition. Even with a couple of players in a field,
they each soon find that settling at say a 50% margin at high prices,
is far more profitable then competing with the other guy.
Result, consumers lose and get screwed.