“If this Government cannot get the adjustment, get manufacturing going again, and keep moderate wage outcomes and a sensible economic policy, then Australia is basically done for. We will end up being a third rate economy… a banana republic.” Paul Keating -May 14, 1986.
A nation must be strong and fair in order to grow proportionately. If there’s any country that knows evolution in its pure form, it is the lucky country of Australia. But despite the path that this country has taken for some time now, things are now changing.
That’s the subject of recent days discussions, upcoming news that tells us about a new era of Australia, one with difficult challenges and serious risks.
No More Australian Dream?
The magic land that was Australia one or two decades ago is now changing drastically, mainly due to a huge burden of AU$572 billion in Commonwealth (Federal Government) debt, AU$1.829 trillion in household debt (primarily housing debt) and AU$903 billion of business debt as of July 2017.
The economic progress year after year has left a long-lasting mark in the Australian soul. A glorified sand clock that is getting emptier while the only thing that seems to matter is to be (or at the very least, appear to be) richer than the next-door neighbour.
But even when bad things are happening, the key is to take the problems and explain them to the people. This is what allows us to resolve these tricky situations before is too late. The path of becoming a banana republic is the one we need to avoid.
A competitive economic system with significant reforms and evolutionary thinking is the jump forward that Australia needs to avoid the upcoming hole. To support the solution is to be aware of what’s going on and what is the exact thing we may be doing wrong.
Social evolution in the 21st century is necessary. Australia, as a whole, is a constantly growing place but when it comes to the economy, we need to adapt and embrace technology.
Growth tends to be confused with evolution. The problem here is that growth can stop at any moment and for any reason, but evolution never stops. In financial terms, there is always going to be money available, just like plenty of ways of earning it.
Despite the problems ahead, what we should pay attention the most is to potential solutions. Fortunately, there are a few of answers to this maze of disconcerting challenges. People and organisations in Australia must take a wide-open approach to global business. With globalisation, golden opportunities for nations to grow are outside their own frontiers.
Also, at the core of the primary issue, we can find a weak business planning, one that comes from a cultural level. Beyond the previous two and many other potential approaches that could be worthy of proper research, it’s needed to say that both the problem and the solution reside in the national community.
If we don’t want to transform the country into something undesirable for our children to grow, it’s necessary to start communicating and putting the hard work to move, step by step, the whole community in the right direction.
There’s plenty of examples of companies that didn’t embrace innovation during recent eras and failed horrendously. Adaptation is the unique to survive and grow, just how evolution taught us. Let’s learn from previous mistakes and avoid getting Australia into the exact same path.