Australia at the Crossroads of Globalization

Foreign investment has allowed the Australian economy to flourish – slashing unemployment, doubling the country’s wealth and reducing national debt. Once an isolated and lonely market, Australia has leveraged trade to its advantage, with mining and other industries taking advantage of the fast-growing Chinese economy. Australia citizens remain content with globalization, largely because government policies increased competitiveness without reducing minimum wages or combating with labor unions. The country did remove most trade tariffs and opened its banking to foreign partners, creating a thriving investment climate. Another secret to the widespread satisfaction is that Australia has protected its poor by imposing means-testing for health care, pension and prescription drug benefits. The country also retains a progressive tax system, placing the wealthy taxpayers in a higher bracket. Still, the country does have some problems, including long hours for workers, as well as a rise in materialism and an increasing income gap between rich and poor, and a low savings rate. But citizens are confident about their economy and future – suggesting that policymakers can control the effects of globalization – YaleGlobal