[LINK] This makes me angry.

[David Boxall]

On 2/04/2012 1:32 PM, Frank O'Connor wrote:
> Any way you look at it, the current mining boom isn't good for Australia as a whole:
> ...
> On a side note: Ross Gittens has an interesting piece in The Age/SMH today at: http://www.theage.com.au/business/the-case-to-slow-down-the-mining-boom-20120401-1w6j0.html ... which may be of interest.
> ...
 From that article:
> Denniss suggests this thought experiment: if all of Australia's mineral resources were controlled by a profit-maximising monopolist, would it respond to the present exceptionally high world prices by building as many new mines as possible as quickly as possible?
>
> Would a monopolist bid against itself for scarce labour and infrastructure capacity (to get the minerals to port and onto ships)? Or would it invest in training and infrastructure before it began expanding production?
>
> His point is not to advocate monopoly, obviously, but to make clear the potential for conflict between the interests of the miners and the interests of the nation.
>
> We are a monopolist in the sense that all the natural resources belong to us. Which means it's up to us to ensure they're exploited in the way that benefits us most. In this we need to remember the miners are largely foreign-owned (meaning we retain little of the after-tax profits) and the resources are non-renewable.

In an episode of Gruen Planet last year, they examined tricks employed 
by the mining industry to inflate public perceptions of the industry's 
significance. If I remember correctly, mining accounts for about 9% of 
the economy and 1.9% of employment.

If all mining stopped, it would hurt, but we'd survive. Chances are that 
the minerals will be worth more later than they are now.

-- 
David Boxall                         | ignorance more frequently
                                     | begets confidence than does
http://david.boxall.id.au            | knowledge
                                     | --Charles Darwin (introduction
                                     |  to 'The Descent of Man' 1871)