Notice closely how this graph reveals some uncomfortable truths for the "no tarrifs" crowd.
First image is a graph of the production of cars in Brazil by time.
See how in 1990 when imports were not taxed....the local industry receded seriously. But just look at what happened in subsequent years? See the next image to find why.....
|Brazil protects is vehicle manufacturing industry with tarrifs.|
The industry grew and grew and grew in Brazil when tarrif's were imposed around 2000.
Tarrifs are resisted by Conservative Australian governments because, I suspect it benefits their National Party members who benefit greatly from untaxed agricultural exports to other countries which make cars. It seems the coalition Government and Labor included have decided to sacrifice our car manufacturing industry for the benefit of other industry sectors that they believe will bring in more loot to the leaking government coffers.
The Labor government (and previous Coalition Governments) seem to believe that pouring public money into failing businesses is somehow doing to have some redeeming value. It won't. All it will do is give stubborn and nefarious Unions the cozy feeling they can continue to demand ever more because.. "we" the taxpayer, foot the bill. IF the government wants to save the vehicle industry, rather than tiptoe through the industrial minefield and play nincompoop 'pink batts' economics, they must to a number of things.
i) Dismantle the Union influence on the Auto Workers.
ii) Re instate some Tarrifs on imported vehicles.
iii) Liase with the Manufacturers to come up with an increasingly efficient manufacturing plant.
iv) The last point has only one meaning. "Less" workers and "More" automation.
Conclusion. It does not matter how you cut the cake, the slices are destined to crumble unless it is a balanced and comprehensive approach. Workers must be re-educated along lines that some have to go and be replaced by machines, and there can be no further Union involvement in the industry. If workers are fed up or disgruntled, the only logical solution is to walk out.