According to Westpac senior executive Brian Hartzer:
To create a more diverse and sustainable economy, we need to focus on encouraging innovation sectors such as advanced manufacturing, IT, life sciences, medical devices, robotics, new materials and nanotechnology. A lot of the dialogue around future growth seems to default back to expecting government, or big policy changes to address it. The problem with that is – yes, that has a place – but there is a bigger picture here which is about entrepreneurialism and drive from individuals and businesses. I think we need to turn our attention to how we support those people, rather than always looking to government to solve the issue.
He’s an American so doesn’t count but I’m wondering if Mr Hartzer actually understands what he is suggesting. For manufacturing of any kind to prosper, input costs driven sky high by land prices and a dollar bloated by offshore borrowing and over-consumption will need to fall. As well, banks will need to lend to manufacturers for capex and for trade finance, not just on residential real estate security.
That is, manufacturing has little real future until the banks are shoved back from the current dominant role they play in the housing economy.
