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The 20th Century economic debate

 

For much of our history NSW (then, after 1901, Australia) has been extraordinarily vulnerable to climate and agricultural trade cycles.

 

 

‘The chart shows Australia’s economic progress over 140 years... ‘The volatility was enormous both before and during the Industrial Age (1865-1964) largely due to weather. Agriculture remained over 15% of our GDP for most of that period…  ‘a 25% fall or more in output would slice 4% off the economy by itself - with a domino effect through the food & fibre input-output chain - causing a recession. We had 27 such years or one every 3-4 years...’

Phil Ruthven IBIS 

 

During the 20th century Australian governments experimented with the full spectrum of government interventions to develop manufacturing; both to reduce our dependency on agriculture and to increase Australia’s military resilience.  To grow and protect manufacturing Australia applied, then abandoned: selective tariffs; publicly owned businesses; and enforced government purchasing preferences. 

Until the start of the 20th century the political differences in pre-federation Australia were polarised around the issue of ‘free trade’ verses protection (NSW versus Victoria).

The electoral success of the Australian Labor Party (in 1910), following the Marxist social analysis in the mid 19th century and English Fabianism, led to a new polarisation around worker’s rights and the socialist alternative to capitalism; retaining a strong protectionist sentiment.  With the split in the Labor party, at the start of the ‘Great Depression’, a new ‘United Australia Party’ (in government from1932 -1941) formed around Lyons and Labor splinter groups, together with elements of the older establishment parties; both free traders and protectionists.

Thus by the middle of the century, both major parties had elements combining the older protectionist movements, as well as elements supporting socialism and public ownership. Protection and government owned enterprise became an accepted reality on both sides of politics; reinforced by two world wars.

By the mid 1960’s, under the protection of import tariffs and direct government involvement in economic production, manufacturing in Australia had grown to become the largest and most productive sector in the economy, long supplanting agriculture, services and mining.

But at the end of the Menzies/ McEwen era, in the late 1960’s, it was apparent that much of this manufacturing and government enterprise was inefficient and unable to compete internationally. With the new Universities, post-war academic sentiment was swinging towards Neo-Keynesian (eg Samuelson) or Monetarist (eg Friedman) economics and the intellectual climate changed. 

Free trade and free market arguments prevailed, in both major political parties, and the progressive withdrawal of protection followed, along with the disposal of government owned businesses and local buying requirements.

In 1967 the first minerals boom and a large increase in foreign investment lead to the dollar’s decoupling (un-pegging) from the pound sterling. Its strong upward revaluation followed.  Together with the Federal Government’s determination to dismantle protection, this contributed to rapid economic restructuring.

 

 

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Travel

USA - middle bits

 

 

 

 

 

In September and October 2017 Wendy and I took another trip to the United States where we wanted to see some of the 'middle bits'.  Travel notes from earlier visits to the East coast and West Coast can also be found on this website.

For over six weeks we travelled through a dozen states and stayed for a night or more in 20 different cities, towns or locations. This involved six domestic flights for the longer legs; five car hires and many thousands of miles of driving on America's excellent National Highways and in between on many not so excellent local roads and streets.

We had decided to start in Chicago and 'head on down south' to New Orleans via: Tennessee; Georgia; Louisiana; and South Carolina. From there we would head west to: Texas; New Mexico; Arizona; Utah and Nevada; then to Los Angeles and home.  That's only a dozen states - so there are still lots of 'middle bits' left to be seen.

During the trip, disaster, in the form of three hurricanes and a mass shooting, seemed to precede us by a couple of days.

The United States is a fascinating country that has so much history, culture and language in common with us that it's extremely accessible. So these notes have turned out to be long and could easily have been much longer.

Read more: USA - middle bits

Fiction, Recollections & News

The McKie Family

 

 

 

 

Introduction

 

 

This is the story of the McKie family down a path through the gardens of the past that led to where I'm standing.  Other paths converged and merged as the McKies met and wed and bred.  Where possible I've glimpsed backwards up those paths as far as records would allow. 

The setting is Newcastle upon Tyne in northeast England and my path winds through a time when the gardens there flowered with exotic blooms and their seeds and nectar changed the entire world.  This was the blossoming of the late industrial and early scientific revolution and it flowered most brilliantly in Newcastle.

I've been to trace a couple of lines of ancestry back six generations to around the turn of the 19th century. Six generations ago, around the turn of the century, lived sixty-four individuals who each contributed a little less 1.6% of their genome to me, half of them on my mother's side and half on my father's.  Yet I can't name half a dozen of them.  But I do know one was called McKie.  So, this is about his descendants; and the path they took; and some things a few of them contributed to Newcastle's fortunes; and who they met on the way.

In six generations, unless there is duplication due to copulating cousins, we all have 126 ancestors.  Over half of mine remain obscure to me but I know the majority had one thing in common, they lived in or around Newcastle upon Tyne.  Thus, they contributed to the prosperity, fertility and skill of that blossoming town during the century and a half when the garden there was at its most fecund. So, it's also a tale of one city.

My mother's family is the subject of a separate article on this website. 

 

Read more: The McKie Family

Opinions and Philosophy

Discovery of the Higgs boson

 

 

Perhaps the most important physics discovery of my lifetime has finally been announced.  I say 'finally' as its existence has been predicted by the 'Standard Model' for a long time and I have already mentioned this possibility/probability in an earlier article on this website (link).

Its confirmation is important to everyone, not just to physicists working in the field of quantum mechanics.  Like the confirmation of the predictions of Einstein's Theory of Relativity we are now confronted with a new model of reality that has moved beyond an esoteric theory to the understanding that this is how the Universe actually is; at least as far as the Standard Model goes.

Read more: Discovery of the Higgs boson

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