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"we need to value add" (Read 4274 times)
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Re: "we need to value add"
Reply #15 - May 12th, 2018 at 7:37pm
 
Quote:
And who grows & nurtures the sheep, who shears the sheep, classes the wool, puts it in the press,moves the full bale, loads it on the trucks, the unloads at the agents to be reloaded into containers, who loads it on the ships?

The labour component to turn that wool into a saleable garment here is only a small portion of the overall production costs.

The same can be applied to much of our export commodities like iron ore & aluminum oxide.  Roll Eyes


Absolutely correct and ALL of that is part of the recipe of being able to compete with overseas markets/factories.

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Re: "we need to value add"
Reply #16 - May 12th, 2018 at 8:30pm
 
Quote:
we can't just be a country that digs holes in the ground & ships stuff off for others to make money out of.


We should sell potatoes and degrees also. That's where the money is.

Quote:
We need to sell woolen clothing not bales of wool.
Why can't we make clothing anymore and sell it overseas?


And baskets. Why sell rolls of wicker to the Balinese when we can weave it into perfectly good baskets for them to sell to drunken tourists?

Quote:
Who are we looking after shutting down all our industry & offshoring & importing everything?


Ourselves. Would you rather be driving a truck in a mine for $150k a year or running a woolly jumper machine for $10 a day?

If, after a day of work, you could sell 2 tonnes of ore for $2000 or one tonne of processed ore for $1100, which would you choose?

Where does this imaginary "need" come from? We live in a global economy. We buy televisions, ipads, cars, etc from all over the world, that we could not hope to make here. What is so special about a certain position in the supply chain that we have to occupy it over another? The competitive advantage the Chinese have is their low wages. Our competitive advantage is natural resources and an educated population. Why do we "need" to swap places with them?
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Re: "we need to value add"
Reply #17 - May 12th, 2018 at 8:39pm
 
freediver wrote on May 12th, 2018 at 8:30pm:
Quote:
we can't just be a country that digs holes in the ground & ships stuff off for others to make money out of.


We should sell potatoes and degrees also. That's where the money is.


Yes, but that might run the risk of bringing in the Irish and the tinted races.

Not nice, dear, and not sustainable.
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Re: "we need to value add"
Reply #18 - May 12th, 2018 at 8:50pm
 
Just a friendly reminder - if you use the word "sell" five or more times in one post it will trip the spam detector and you will be timed out for 50 minutes.
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Re: "we need to value add"
Reply #19 - May 12th, 2018 at 8:59pm
 
freediver wrote on May 12th, 2018 at 8:50pm:
Just a friendly reminder - if you use the word "sell" five or more times in one post it will trip the spam detector and you will be timed out for 50 minutes.


That passport guy's pretty good. Anyway, he's pretty much giving his passports away. $3000 for an unused Pakistani passport.

BUY NOW.
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Re: "we need to value add"
Reply #20 - May 12th, 2018 at 11:11pm
 
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.



We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.
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Re: "we need to value add"
Reply #21 - May 12th, 2018 at 11:42pm
 
longweekend58 wrote on May 12th, 2018 at 6:37pm:
freediver wrote on May 12th, 2018 at 5:57pm:
Bobby wrote on May 12th, 2018 at 2:50pm:
But FD - we need to add value to what we export.

We need to sell steel not iron ore.

We need to sell Uranium fuel rods - not Yellowcake.

We need to sell woolen clothing not bales of wool.


Sir lastnail wrote on May 12th, 2018 at 10:17am:
Yes you need a manufacturing base or value added industries otherwise there is no way we can sustain our standard of living without going into more and more debt.


Why?


The idea is good, but what of you cannot compete on 'value add'? After all, do you think people have never thought of this before? We do in fact sell steel but it is competitive and not helped by Trumps stupid tariffs. Making clothing has long since gone to the third world and as for making uranium fuel rods... its not a manufacturing issue. The nuclear industry is highly regulated and we cannot simply 'decide' to make fissionable material without international discussion and approval without sanctions. Are you not watching the Iran nuclear issue>?


So how does germany compete making premium quality cars and exporting them all around the world ? You don't always have to race to the bottom and make nickle and dime trinkets for the masses. Of course we are going to lose out if we go down this path !
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Re: "we need to value add"
Reply #22 - May 12th, 2018 at 11:43pm
 
Bobby wrote on May 12th, 2018 at 11:11pm:
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.



We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.


Good point, Bobby. When we add the tariffs, ban imports and ban all the tinted races in the fullness of time, we can move to 3rd world status even quicker.

You gotta have a dream, no?
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Re: "we need to value add"
Reply #23 - May 12th, 2018 at 11:45pm
 
freediver wrote on May 12th, 2018 at 8:30pm:
Quote:
we can't just be a country that digs holes in the ground & ships stuff off for others to make money out of.


We should sell potatoes and degrees also. That's where the money is.


Selling degrees to foreigners who end up using it to put us out of business. Great short term strategy until they work out how to offer their own degrees !!

Jeez this is bottom of the barell stuff isn't it Sad
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Re: "we need to value add"
Reply #24 - May 12th, 2018 at 11:50pm
 
Bobby wrote on May 12th, 2018 at 11:11pm:
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.



We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.


Too many non-productive wordsmiths in this country getting paid too much to produce rubbish scribble on bits of paper. KPMG, Ernst Young, Deloitte etc. All rubbish service sector companies sucking the tax payers dry to the tune of $420 mill a year. Their value add is absolutely zero with no real export potential.
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Re: "we need to value add"
Reply #25 - May 13th, 2018 at 12:22am
 
Sir lastnail wrote on May 12th, 2018 at 11:50pm:
Bobby wrote on May 12th, 2018 at 11:11pm:
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.



We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.


Too many non-productive wordsmiths in this country getting paid too much to produce rubbish


Now now, LN, I'll have you know we imported the old boy, and his stool is divine.

It's his Mormor's secret recipe.Multiculturalism, innit.
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Re: "we need to value add"
Reply #26 - May 13th, 2018 at 6:00am
 
Gnads wrote on May 12th, 2018 at 7:25pm:
freediver wrote on May 12th, 2018 at 5:57pm:
Bobby wrote on May 12th, 2018 at 2:50pm:
But FD - we need to add value to what we export.

We need to sell steel not iron ore.

We need to sell Uranium fuel rods - not Yellowcake.

We need to sell woolen clothing not bales of wool.


Sir lastnail wrote on May 12th, 2018 at 10:17am:
Yes you need a manufacturing base or value added industries otherwise there is no way we can sustain our standard of living without going into more and more debt.


Why?


Who are we looking after shutting down all our industry & offshoring & importing everything?

It certainly isn't everyday Australians.

The cost of labour is just a cop out.



You're right,
we can't keep shutting down our industries but
I know it's hard to compete with China where
they pay their workers a bowl of rice per day.
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Re: "we need to value add"
Reply #27 - May 13th, 2018 at 6:01am
 
Sir lastnail wrote on May 12th, 2018 at 11:50pm:
Bobby wrote on May 12th, 2018 at 11:11pm:
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.



We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.


Too many non-productive wordsmiths in this country getting paid too much to produce rubbish scribble on bits of paper. KPMG, Ernst Young, Deloitte etc. All rubbish service sector companies sucking the tax payers dry to the tune of $420 mill a year. Their value add is absolutely zero with no real export potential.



Yes - why can't we be a huge exporter like Germany?
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Re: "we need to value add"
Reply #28 - May 13th, 2018 at 8:25am
 
Bobby wrote on May 12th, 2018 at 6:48pm:
longweekend58 wrote on May 12th, 2018 at 6:37pm:
freediver wrote on May 12th, 2018 at 5:57pm:
Bobby wrote on May 12th, 2018 at 2:50pm:
But FD - we need to add value to what we export.

We need to sell steel not iron ore.

We need to sell Uranium fuel rods - not Yellowcake.

We need to sell woolen clothing not bales of wool.


Sir lastnail wrote on May 12th, 2018 at 10:17am:
Yes you need a manufacturing base or value added industries otherwise there is no way we can sustain our standard of living without going into more and more debt.


Why?


The idea is good, but what of you cannot compete on 'value add'? After all, do you think people have never thought of this before? We do in fact sell steel but it is competitive and not helped by Trumps stupid tariffs. Making clothing has long since gone to the third world and as for making uranium fuel rods... its not a manufacturing issue. The nuclear industry is highly regulated and we cannot simply 'decide' to make fissionable material without international discussion and approval without sanctions. Are you not watching the Iran nuclear issue>?



We could get permission to make fuel rods easily.
The IAEA would allow us - we just need the right permits & inspections.
What we lack is the nuclear technology.
Even Iran is way ahead of us.
We need a nuclear industry here -
we can't just be a country that digs holes in the ground & ships stuff off for others to make money out of.



It is not 'easy' at all. The global nuclear non-proliferation treaty expressly forbids it. There is also no good reason to do it either. Creating fissionable material is an extremely complex and expensive process and there is not a good market case to make for it.

yes, Iran is 'ahead of us' and perhaps you have seen the global issue surrounding that.
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Re: "we need to value add"
Reply #29 - May 13th, 2018 at 9:18am
 
Is there a single person here who would be willing to sacrifice part of their income to become a factory labourer in one of these industries we so desperately "need"?

Bobby wrote on May 12th, 2018 at 11:11pm:
FD,
Quote:
We should sell potatoes and degrees also. That's where the money is.


We have to move away from the dig it up & ship it out mentality.

I think if we don't value add we're doomed to move to 3rd world country status.


Do you have any particular reason for believing this?

Quote:
So how does germany compete


Several ways.

They have lower wages.

They have 4 times the population and are very close to other large population centres, so they have economies of scale. This is particularly important for the modern car industry.

They are close to the bulk of their customers, in terms of transport cost.

They do not have relatively large mining, tourism etc sectors competing for employees.

Despite this, the Europeans are slowly losing out to the Asians who are better placed on all these scales.

And despite all this, Australia does actually still compete in the car industry in those sectors where we have a natural competitive advantage. Bolting the cars together is not one of them.

Quote:
You don't always have to race to the bottom and make nickle and dime trinkets for the masses.


That's what cars are these days. They are old technology. They have been around for over a century. They have the imagery and emotional attachment to what made our nations great, but time have changed.

Quote:
Selling degrees to foreigners who end up using it to put us out of business.


They are going to get the degrees whether we profit from it or not. Might as well profit from it.

Quote:
Too many non-productive wordsmiths in this country getting paid too much to produce rubbish scribble on bits of paper.


Yes, that's why. We all get paid to much. We should be more like all those German labourers getting paid half as much to work a lathe.

Quote:
we can't keep shutting down our industries


They shut themselves down because they lose all their good employees to better paying industries.

Quote:
Yes - why can't we be a huge exporter like Germany?


Relative to our population, we are a bigger exporter and focus on the higher wage industries.
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