Econ1301 Lecture 3 1788-arrival 1851-gold -the gold rush brought hundreds and thousands of people to sydney -one of three

gold producing countries in the world nowadays 1890-depression 1901-federation 1914-18-war 1930s-great depression 1939-45-war Australias share in new british overseas investment: 1868-72 4.6% 1873-82 13.3% 1883-87 25.7% 1888-91 16.5% Land after 1788 1.exported to britain (crown land) wool was the major export of australia.the wool market collapsed toward the end of the 20th century. 2.land rights transfers,creating private property,distributed to the new landers 3.public revenue from land (sale, lease) to add value to the land, to bring more population to the land, fully paid migration because australia was competing for population with north and south america A.capital (railways etc) B.Labour (assisted migration) Investment: Housing is the major investment in australia in the urban area, the investment in railways relocates the economy in australia. creates a global network of production and consumption. Government: Melbourne had its population decreased as they left the country. Sydney have a better government. Australia is a mutually interdependent entity. -Australia before the 1900s had the best statistical and self-explanatory economy, which helps to increase the consciousness of the australian economy. -Metal, zinc, copper -->metal manufactory takes off before the war is over. War allowed australia to substitute for exports as it relied on other countries before. For example, the largest piano manufacturer is in Germany and dominated the australian piano market. -after the war, in 1919, the australian government owned 4x debt compared to 1914. Protective tariff is crucial to the economy and that this will create full diversity. This tariff has 3 levels: general tariff applies to most goods, lower level which applies to goods in britain, (britain is a major market so substantially less tariff). Car tariffs are high this will attract other countries to come to australia to assemble cars in australia, but relieves the balance of payment. -australia rely on borrowing and foreign capital. In the great depression, australia is asked to drop its recent tariffs so australia could buy more british goods as advised the Bank of England. Australia accepted the fallacy of composition.