Dropping the exchange rate will help make our exports more attractive so that will help stimulate the mining sector, but as mining wages continue to rise to attract workers there may be a cancelling out effect.
Mining activity is our biggest earner, but our wage cost structure is extremely expensive compared to global peers.
It is not getting any cheaper unless we introduce ridiculously low pay rates like the USA, and have enough unemployment in the cities for people to consider re locating to another state for work.(none of which I advocate is a viable solution)
Foreign investment in residential properties? how is this going to be a MAIN driver for growth in the economy?
And your "solution" is selling more assets like property and any profitable companies like graincorp??
So foreigners will control the use of any capital generated by these profitable companies?
What will be left to sell in the long term?
It is exactly this thinking that delays a re start of our economy.
Shouldn't we be focussing on actually PRODUCING/CREATING something to export as opposed to just SELLING the next asset in the line?
This is what keeps many Australians lazy and stupid, and any foolish idiot can sell something in a country that was lucky enough to have so many valuable assets in the ground.
Australian policy makers have to find a special niche for Australian industry and manufacturing.
Look at the massive trade/apprenticeship program in Germany to continue a new generation of people with SPECIALISED skills in the Auto sector to EXPORT to the world.
Auctioning off any of our productive assets is extremely short sighted and will leave many Australians poor in their own land that will be owned by others.
