Labor s Manufacturing Fetish
Posted on June 11, 2008
The ALP s manufacturing fetish was evident when it was in opposition. Kevin Rudd said back in 2006 that he wanted Australia to be more than a mine for China and a beach for the Japanese. The subsequent appointment of the left s Kim Il Carr as industry minister in the new government was also a bad sign. Australians will now start paying the price for this manufacturing fetish through local production of hybrid cars, one of the worst industry policy decisions in 20 years. As Henry Ergas notes:In an economy that is pushing over-full employment, increased subsidies to assemb...
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