I’m reminded of engineering contractors who several years ago complained that a large majority of the work went to American companies. They couldn’t understand why.

But it’s easy. Many companies will look at a project and examine the work they have competencies in and bid on that; Americans will usually bid on the entire project, not concerned about having all the competencies, as they can be hired once you have control.

It’s “can do the whole thing” as opposed to “can do a little”. Control wins the investment dollars.

Slugcatcher assumes and accepts that government should heavily interfere in Australian lives and society because that’s the way it has been, and if you don’t like it – tough!

Perhaps he would like to extend his argument to the people of Poland and Russia, etc who have lived under “in-your-face” governments, or to the majority of the world where many people, like in Australia, have the “womb to tomb” government mentality.

The American system is not perfect but accepting stagnancy is also not an option.

Australia would do well to remember that investment dollars have a wide variety of choices and the more regulation and uncertainty you create, the less attractive it is to invest.

When John Howard began opening the deregulation door, investment poured into this country and prosperity was created. Ignore this and Australia will face an even more economic uncertainty past 2010 when the world economy is already set to spiral downwards, if you believe in macro economic trends and cycles.

One can use the tourism industry as an example. It is way down and not surprising. There is more competition and other countries are doing it better.

Innovate or perish.