Economic Infrastructure
My Plans for Economic Infrastructure in Wentworth
The economy is like a machine capable of creating high living standards, safe suburbs, and opportunities for everyone to make a living. Throughout the 20th century, Australia's economy has achieved this, establishing us as one of the wealthiest countries in the world. However, this high ranking may slip if we don't address weaknesses in our economic infrastructure. While we enjoy impressive living standards, the cost of living has surged post-COVID, inflation has reached record highs, and interest rates continue to rise.
My Key Actions:
1. Address monopolies in the food, finance, and flight sectors to reduce cost-of-living pressures.
2. Encourage Australian businesses to adopt cryptocurrency as a payment method and allocate a portion of Australia's wealth to cryptocurrency investments.
3. Incentivize and fund small businesses to foster a more competitive market.
4. Bring manufacturing back to Australia to improve our export complexity ranking.
Monopolies in Australia
Banks, supermarkets, airlines, energy, telecommunications, and pharmacies in Australia are dominated by large companies that have effectively monopolized these essential industries. This concentration has significant implications for consumers. In a competitive market, companies work to offer lower prices and better products, striving to attract customers. However, in Australia, these monopolistic conditions mean that large corporations can control prices and dictate product quality without facing pressure to compete. In sectors such as supermarkets, where we have both Woolworths and Coles, there exists an additional concern: cartel-like behavior. When a few companies dominate an industry, they may work together to "fix" prices, ensuring that customers pay more regardless of their choice. While cartels are illegal, large corporations often find ways to circumvent these restrictions, leading to inflated prices on essentials like food, electricity, airfare, and pharmaceuticals. My goal is to expose these monopolies and ensure they cannot exploit consumers for higher profits. Any company found to be engaging in cartel behavior will face serious legal consequences, and industries dominated by monopolies will pay additional taxes and fees to discourage this market imbalance. To truly restore competitiveness, we must prioritize support for small businesses. By helping smaller enterprises flourish, we can stabilize our economy and ensure that profits are returned to the people, not just to a few large corporations.
Bringing Cryptocurrency into Australia
Cryptocurrency, a digital form of currency, is often misunderstood or given a bad name in the media. As a result, many people don't know enough about this new technology and are initially skeptical of its potential in the financial world. However, cryptocurrency is incredibly powerful, with the potential to revolutionize global finance. As it continues to evolve, it's becoming clear that crypto will play a significant role in the future of money, serving as both a global currency and a store of value that appreciates over time.
Historically, countries used "the gold standard" to ensure currency stability by linking their currency to a fixed amount of gold, limiting inflation. Later, countries decided to move away from gold and into a new system called "the fiat system." Fiat money has no intrinsic value and is not backed by a physical commodity like gold; rather, its value comes from government regulation and public trust. Fiat money can provide greater economic growth in the short term but can lead to significant inflation and diminishing purchasing power, placing power within the hands of the government and large financial institutions such as banks. Cryptocurrency offers an alternative by decentralizing control, restoring financial power to individuals by operating on transparent blockchain technology that creates a limited supply of value similar to gold, and reducing reliance on traditional banking as it can all be used and accessed on our devices.
I want to position Australia at the forefront of this financial revolution by integrating cryptocurrency into our economy. My plan involves incentivizing Australian businesses to adopt crypto as a payment method, making it easier for customers to use digital currencies in everyday transactions. Additionally, I propose that Australia invest a portion of its funds in cryptocurrency. This would not only diversify our national investments but also ensure we benefit as crypto appreciates in value over time. By embracing this technology now, we can secure a wealthier, more forward-thinking Australia for future generations.
Supporting the Underdogs
A thriving landscape of small businesses is far healthier for any industry than having just a few large corporations dominate the market. When small enterprises compete, prices decrease, quality improves, and consumers benefit from a range of options, leading to increased buying power. For workers, this environment also fosters higher wages, as companies are incentivized to offer competitive salaries to retain talent in a dynamic job market. My priority is to support small businesses, and I believe we should all recognize their value. In Australia, monopolization is widespread, impacting nearly every sector—from food and energy to telecommunications and retail—which burdens consumers with high prices, reduced product quality, and stagnant wages. I am committed to providing funds to small businesses throughout Wentworth to help them grow and flourish, aiming for an industry driven not by a handful of giants but by a vibrant community of small, agile companies. Supporting these underdogs is the path to a better future—one that is both more affordable and filled with diverse opportunities for all.
Manufacturing Back in Australia?
In 2023, Australia ranked 93rd out of 133 countries in the Economic Complexity Index (ECI), a metric that evaluates the diversity and sophistication of a nation's export economy. This ranking places Australia close to countries with significantly less diversified economies, such as Uganda and Pakistan.Given that Australia boasts one of the highest GDPs per capita globally and substantial average salaries, this ranking is unusual and concerning. Without increasing the complexity of our exports, Australia risks economic stagnation, and its wealth could eventually diminish. One way to address this is by reintroducing manufacturing to Australia. In the mid-20th century, Australia had a strong manufacturing sector that produced a wide range of goods, including automobiles, textiles, machinery, and chemicals. However, by the 1980s, as the economy shifted toward free trade and openness, these industries struggled and gradually declined. I want to revive manufacturing, especially in high-tech areas like medical equipment, defense, and renewable energy, as this would improve Australia's ECI ranking by adding diversity and complexity to our exports. By making this change, we can build a thriving economy that ensures long-term prosperity and stability for future generations.