The Australian government is still protecting industries that employ a small number of people. This is while the largest employer, the services sector, is subject to the largest tariffs, a recent Productivity Commission report demonstrates.
As a whole, manufacturing still receives 77% of net assistance, largely due to the remaining small levels of tariff assistance, plus some budget measures, according to the report.
Input tariffs increase the costs of imported goods and services that go into making things. This makes a business activities more expensive for the consumer. And even though the services sector accounts for around 85% of employment, current government policy is penalising this sector, which has the best prospec…
Read the full article at: http://theconversation.com/the-government-is-backing-the-wrong-industries-as-our-economy-changes-productivity-commission-81703