Is the mining boom harmful in the long term?
Mining boom is a period during which the mining of a product is at its peak or a period during which the process of mining becomes very popular among the populace of a country. The question that comes to mind thereafter is whether the mining boom is harmful in the long run or long term (Cleary, 80-82). Although many may be of different opinion about it, mining boom is harmful in the long run due to various reasons. To start with, unless the funds that are generated from the mining are invested well, the boom will not be beneficial to the citizens in the long run bearing in mind that the wealth generated from mining will in the future be dissipated (Baum et al, 124-126). That therefore implies that the boom will be harmful in the long term for the entire workforce will be left jobless.
Similarly, the mining boom has a potential of becoming harmful in the future incase the majority of the shareholders are foreigners at the moment. That implies that they will be calling the shots especially when it comes to tax from mining something that gives them a chance to exploit the resources and invest in their home countries (Healey, 62-65). Moreover, the boom is harmful due to the fact that the wealth that is generated from the mining is not equally distributed across the whole country. In the long term, that will not be good since factors such as overcrowding and price effects that the boom creates especially in where the mining takes place will occur (Sjöblom, 87-89). Finally, the mining boom can make other industries especially those producing household goods to be disadvantaged in the long term as it raises the exchange rates something that puts pressure on them.
Work Cited
Baum, Scott, Kevin O'Connor, and R J. Stimson. Fault Lines Exposed: Advantage and Disadvantage Across Australia's Settlement System. Clayton, Vic.: Monash University ePress, 2005. Internet resource.
Cleary, Paul. Too Much Luck: The Mining Boom and Australia's Future. Collingwood, Vic: Black Inc, 2011. Internet resource.
Healey, Justin. Australia's Mining Boom. Thirroul, N.S.W: Spinney Press, 2012. Print.
Sjöblom, Stefan. Sustainability and Short-Term Policies: Improving Governance in Spatial Policy Interventions. Farnham, Surrey, England: Ashgate Pub, 2012. Print.
