Tony Abbot said that he would like to be known as the "development" prime minister. With the deficit that the Australian Coalition government aims to reduce as soon as possible, this simply cannot happen. Investment on roads, schools and hospitals takes cash that Australia does not have. Just how he planned to invest and save is a mystery.
Legacies cannot be planned. They happen due to one's behavior and circumstances that cannot be controlled. Planning the future particularly your own is difficult. Of course he stopped the boats by being ruthless and taking action that has infuriated our neighbor, Indonesia. This always was a dangerous course of action. Diplomatically it is an absolute mess with future repercussions unknown.
What is certain is that he will be known as the prime minister who killed the Australian automotive industry. Blaming labor costs is tunnel vision on his part. Other input costs are high: a strong currency, power costs, transport, storage, rents, council rates and many other expensive variables. Sadly, he ended production of the Australian car - the Holden. Many may not forgive him for this.
First made in the middle of the last century from an American design, the car truly was an Australian icon that people were proud of. Racing events involved the struggle between the two giants of the motor industry: General Motors Holden and Ford. People were fanatical about it.
Unfortunately, skills will be lost forever as Australian manufacturing downsizes into short run production which is uneconomical. Prime Minister Tony Abbott should understand the truth. An input of money could have saved the Australian motor industry. Furthermore, immediate spending cutbacks can only lead to one thing - recession. As spending power decreases, so does GNP.
Economics by Ty Buchanan
