||'We think we are the lucky country, but what we really have is dumb luck—a lot of luck without the planning or strategy to make sure our good fortune lasts.'—Paul Cleary
In Too Much Luck, Paul Cleary shows that the resources boom, which seems like a blessing, has the potential to become a curse – unless our governments take urgent action.
Today, under-taxed and under-regulated multinational companies make a tidy profit by selling off our non-renewable resources. As the mining boom accelerates, it will drive the dollar sky-high, forcing up the cost of doing business for everybody. Industries such as tourism and education—industries that, unlike mining, involve many jobs—will fade away. But what happens if commodity prices suddenly collapse, as they did with the GFC in 2008; or worse, when the resources run out?
Many countries before us have been caught by the resources trap: a heady period of boom and growth, followed by a painful bust. Paul Cleary maps out the pitfalls, considers what has worked overseas, and suggests a better way forward.