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{ 2 comments… read them below or add one }
things will become expensive, and economic growth will slow down.
Australia would shrivel up and die.
No country in the world has all the natural resources it needs for a modern economy, so even if it wanted to produce everything it used, without trade, it couldn’t.
Add in the cost of doing without imports such as oil and electronics and the result would be economic disaster.
Year by year, with new technology, the cost of a semiconductor plant goes up and the number in the world goes down
http://en.wikipedia.org/wiki/Semiconductor_Consolidation
Australia has a population of about 21 billion:
https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
That’s a very small market for large scale industrial products.
In fact, one can go further. What will happen to Australia if the cost of transport, particularly by ship, goes up significantly? If oil goes back up to $140 for any length of time, Australia may well see major inflation.