It has become a tradition for this column to start the new year by surveying how we are progressing with what I call our “cargo cult economics”.
You remember cargo cults? The natives of New Guinea watched the American planes come in during World War II and unload guns and jeeps, tools and clothes, PX Stores full of groceries.
After the war the planes stopped and witch-doctors told the people they could start things up again if they built airports and conning towers and radar scanners. This they did, from bamboo and straw and coconut shells. But somehow these didn’t work.
This caused years of unrest because the villagers did not understand that behind the goods there had to be an underlying economy of funding, planning, work and building.
Well we in Australia and the western world are not so different really. We’ve seen our wealth delivered by ship and plane for half a century, from America and Europe and particularly China, and today we’re getting more than ever. All they ask for is a few shiploads of dirt from our backyards, and our signatures on some IOUs.
But lately the cargo cult has been getting a big shaky. Over in America when some of their bamboo and coconut airports collapsed three years ago, it took them a long time to recover. In fact there are still clans of natives sitting around waiting to get back to work again.
Of course this causes unrest and their leaders have been blamed and chased around the political jungle with machetes. Just this week in Iowa the bosses of several clans were arguing over who will fight to become the new chief of the tribe. Each one promised more goods, more wealth, less work.
Europe was so solid and confident but now the tribes have all fallen into argumentative conflicts over who has the most pigs and whether they will pass them on to the poorer tribes.
The Greeks are not so worried. Two and a half thousand years ago they had a very successful economy where slaves did all the work and the citizens sat around the agora arguing philosophy and creating democracy - for those who were not slaves. Old habits die hard and they still confidently expect their daily wine and olives.
The Italians are another ancient race. They have not had a strong central government since Mussolini made the trains run on time, so they don’t see much point in paying taxes. As always the gods will provide, it’s not my problem they say.
As you’d imagine, their straw and copra airports are stunningly designed and exquisitely crafted. But they are not much better at generating magic wealth.
Any suggestion that they should contribute their share of pigs and bananas to the communal kitchen is rejected with horror. Though their refusal is mild when compared to the cries of outrage from the rich Americans if asked to give the tribe more of their pigs. They’d rather cut back on their medicine men.
And so all over the world we, the wealthy tribes, sit around waiting for the cargo planes to fly in more and more goods, as our right. Where they come from doesn’t seem to trouble anyone; who will pay is a problem for later on; the fact that the sea is slowly swallowing the tropical paradise is no worry for those of us in the highlands.
Down here in Australia there’s nothing to worry about so long as there is someone willing to pay for our dirt. We don’t even have to make any goods any more so we can shut all those tiresome factories.
Instead let’s sit back, fire up the barbie, and build another grass and bamboo airport. Look, they’ve worked so far, why not for ever?
ray@ebeatty.com
Blog: themarketeer-raybeatty.blogspot.com
