Diversify: it’s common investment advice, the economists’ version of not putting all your eggs in the one basket.
Yet as a country we’re not heeding it. Our standard of living increasingly hinges on commodities — now two-thirds of our exports — whose prices in the long run are destined to fall. The recent boom that has temporarily so enriched us is unusual and unlikely to last as population growth — and China’s economy — inevitably slows. In fact, commodity prices are down by 50 per cent across the century to 2007, according to Reserve Bank analysis.
Meanwhile our manufacturing sector has shrivelled to 7 per cent of the workforce, far below comparable nations. The number of manufacturing jobs collapsed by 30 per cent to 729,000 across the decade to 2016. It is likely to have tumbled further since.
https://www.theaustralian.com.au/commen … 0ccd8d3ed2