One thing not discussed by advocates of a very open economy is loss of the ability to manage your own economic performance. A very open economy is thus susceptible to poor results due to the economic policies or problems of other countries, as well as our own. We have difficulty enough coping with our own problems without importing the effect of foreign ones. Savings Finally, consider the issue of savings. Undoubtedly our economy would be stronger if we were saving and investing more in it .
More rapid growth provides the basis for increased savings.
It is also harder for government to save when economic growth is low and unemployment high, since social welfare payments are then higher and tax receipts less. Finally, business is more profitable when the economy is growing faster and fewer resources are unused. So it also is able to contribute more to national savings and investment than when the economy is growing weakly. If we want Australians investing more in our country, we require a much faster rate of growth than achieved over the last decade and the last few years. The savings will not come before the growth.