Author(s): Paul Cleary
In Too Much Luck, Paul Cleary shows that the resources boom, which seems like a blessing, has the potential to become a curse unless our governments take urgent action. Today, under-taxed and under-regulated multinational companies make a tidy profit by selling off our non-renewable resources. As the mining boom accelerates, it will drive the dollar sky-high, forcing up the cost of doing business for everybody. Industries such as tourism and education - industries that, unlike mining, involve many jobs - will fade away. But what happens if commodity prices suddenly collapse, as they did with the GFC in 2008; or worse, when the resources run out? Many countries before us have been caught by the resources trap: a heady period of boom and growth, followed by a painful bust. Paul Cleary maps out the pitfalls, considers what has worked overseas, and suggests a better way forward.