Is A.&#039;s manufacturing plan a good idea?

Originally posted by Scott th Ratbag ↑

The prime minister unveiled the Future Made in Australia Act on Thursday, advancing manufacturing and safeguarding the nation’s control over resources and critical minerals.
The plan has been likened to the Inflation Reduction Act in the US.
Mr Albanese said there would be new money in the May budget for the initiative.
“You will see new programs, new funding and new opportunities working with business,” he told ABC’s 7.30 on Thursday.
“One of the things we have been doing is collaborating very closely with our scientists, with our researchers, with the opportunities which are there, but also with Australian-based businesses.”
However, parts of the plan have raised concerns for the chair of the Productivity Commission, Danielle Wood, who Labor appointed.
“We risk creating a class of businesses that is reliant on government subsidies and that can be very effective in coming back for more,” she told the Australian Financial Review.
Opposition Leader Peter Dutton said Ms Wood’s viewpoint was a concern.
“The fact is that over the last two years, manufacturing businesses have gone into bankruptcy – it’s gone up by 300 per cent,” he told Nine’s Today program on Friday.
“We know the energy system is broken – the government’s renewables-only policy is driving up the price of your electricity bill at home … it is for business as well and that’s what’s fuelling inflation.”
But Government Services Minister Bill Shorten said Australia needs more homegrown manufacturing.
“We need to be more sovereign in this country and sometimes that will involve government assistance,” he said.
https://citynews.com.au/2024/new-programs-to-be-bankrolled-by-manufacturing-push/

one of the key distinctive hallmarks of a strong economy is diversity of business interests. note how many European countries manage to maintain moderate growth due to their strong manufacturing base.

Menzies was very strong on building manufacturing, Howard told manufacturers to go off-shore and we've had poor productivity growth ever since.

I've always maintained that a strong manufacturing base is essential for strong employment. this is not going to help so much with jobs today due to the advent of Ai complementing robotics in manufacturing, but it will strengthen the economy to enable stronger revenue base/growth for Govt and so allowing further tax reductions for workers.

so ism this just a gimmick? or a feasible policy to boost economic growth in Aus and improving the general sustainability of our economy?

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I guess we wait to see what 'kind' of manufacturing they are talking about

but, my thoughts would be this - straight off the top of my head

1. any seeding of 'industry' and 'business' to grow - needs to be only ONE part of a puzzle - you need people coming on steam to be absorbed by those new or growing industries.
2. Clearly, you need to have accurately identified which industries are going to survive AND thrive the coming mega changes in society, technology and other industries
3. Manufacturing -

manufacturing 'what'? ----------- we KNOW that the speed of change is going to be light speed in the next very few years ------------ the operative word there is 'change'

so, the widget you make this week - may well be totally obsolete next week - how would you cope with that, how would you design a factory widget maker to be able to change from Widget A to Widget T - in a week?
4. ''safeguarding the nation’s control over resources and critical minerals.''
step right up ---------- buy back the farm. If you want to 'control' the nickel resource for instance ------------ don't' give bucks to the Ni industry like you just did - use capitalism and let them die ---------- take them over yourself and you have total control of your resource - OR - instead of gifting them money and support - LOAN them support - and the repayment is -------- a large percentage of the ownership -------- no liability AND you get to have a lot of control of your resource

years ago when governments could see the computer world coming - they went gung ho on 'job training' computer people - turned out thousands of degrees in computing -

it was 'assumed' that business would 'invest' and grow and absorb those graduates
industry sat on it's fat blot an did nothing

the graduates became taxi drivers ------

it's got to all be only a 'part' of a plan - you need ALL the pieces for it to work

personally - I hear 'manufacturing' and I get the creeps ----------- I want to hear 'research and development' -------

that's where the bucks are ------- and - no dirty chimneys