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The Average Punter is an Importer

The rich people who run this country loved to bang on to the poor about how we were crippled by a high Australian dollar. What they never pointed out was that a low Australian dollar makes just about everything we wear, eat and manhandle more expensive. The average Australian punter is an importer.

A high Australian dollar makes for lower import cost – consider your dollar exchange on Amazon purchases. Most business in the World is done in US dollars. So, while exports are expensive – imports are more affordable.

A low Australian dollar makes exporting more viable. We can sell things cheaper on the International market. Primarily we’re talking about poor old mining magnates. Yes, I know there are a lot of smaller businesses exporting and that international trade is important. But the bottom line is a lowering Australian dollar makes life for the average punter more expensive.

There’s a trade-off. We need a dollar priced low enough to be competitive, while we have it high enough we can afford goods and services from overseas.

Here is an everyday example that I would like you to think about. An example that shows just how much more expensive things are in Australia since the dollar fell to below 80 cents against the USD.

I was in the market last week for a stainless steel pot to be used in brewing. I wanted an expensive professional pot. So I went to the commercial wholesaler that services Hobart restaurants and hotels.

The pot that I chose was priced at $121. The guy behind the counter saw me baulk. He offered me a cheaper pot from the storeroom that fit the exact criteria. It’s price was $91.

He explained that the $121 pot on the shelf had been cheaper than the $91 pot only a few weeks earlier. What had changed was that new stock was being purchased from overseas at the current low exchange rate. A price rise of over $30 for that pot.

So don’t bang onto me about the value of a low Australian dollar to the average punter within Australian society. Our life just got more expensive. And we live in a time when just about everything we buy is bought with that exchange deficit on our dollar. Clothes. Cars. White goods. Plastic. Steel. That $30 rise in the price of a pot is a deficit that applies to nearly all our everyday consumer purchases.

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About the Author

Steven Clark Steven Clark - the stand up guy on this site

My name is Steven Clark and I live in the Derwent Valley in Southern Tasmania. I have an MBA (Specialisation) and a Bachelor of Computing from the University of Tasmania. I'm a mazer & a yeast farmer (making beer, fruit wine and mead as by-products of continuous improvement in my farming practices). I'm a photographer, although my film cameras are currently silent. I do not tolerate idiots. I do not tolerate bigotry. I do not tolerate excuses. Let's be clear, if you sit with my enemies you my are my enemy for life.

Blogger. Thinker. Brewer. Drinker. Life partner to the amazing and incredible Megan.

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