Can anyone here help me settle a dispute I had with a friend some time ago?
Basically his position was that since mining is only ~5% of Australia's GDP, it is just a minor part of our economy.
I countered though that this is misleading; since it makes up ~60-65% of our exports, it's actually the majority of our economy and that without mining we wouldn't be able to enjoy anywhere near the standard of living we have, and that the rest of the GDP merely represents us shuffling around the money we get from mining many times over.
Neither of us are econ/finance/commerce so be gentle please.
>*crickets*
>>1004324
Never use GDP as any kind of indicator for anything. It's largely nonsense.
You are correct in that it is a huge export and therefore has a large impact on the economy as a whole. Also, the sheer number of workers and jobs it creates, both directly and indirectly, including jobs to lobby against mining and to study the negative impact of mining - massive. Huge amount of jobs and therefore a huge amount of taxable personal income and disposable income to be spent elsewhere. Then of course the taxes the companies pay from their profits.
Apart from agriculture and mining Australia has very little to offer.
>>1004348
What about fishing, Australia has quite a lot of waters?
>>1004324
I'm not in ginamce or econ either but you're probably right. You can't have an economy based on hair stylists and real estate agents (ie service industry only). There has to be something creating value, right? And if your exports are way smaller than your imports that can lead to disaster.
I think in the US the backbone of our economy is technology and banking. That props up everything else.
We'll see what others have to say though.
>>1004356
England's economy is almost all FIRE industries.
You a liberal party retard m8?
https://youtu.be/gCqWu1_M6gE
Get enlightened.
>>1004351
I think tourism has bigger impact
>>1004324
>5%GDP
>65%exports
Both of you are right. Many industrialized countries have a lot of service industries that deal with untangible goods. Australia sells legal, financial services etc. Which represents the bulk of the GPD.
on the other hand, when you look at tangible exports, mining takes a huge part of it. Both greatly affect GPD as it creates jobs/profits that then get taxed and reinvested in society.
in terms of absolute right/wrong: check the dollar value of these 65% of exports would be billions of dollars. A billion dollar industry is not by far "small".
Then again, lots of stupid things get put togheter in "GDP" so its not exactly a good measure of wealth
>>1004351
I would probably blanket fishing under ag desu but yes I suppose fishing would play a large role in exports also
>>1004351
We do have a few aquaculture farms
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