Destination Nauru

Through the inevitable mismanagement of resources and goods at the disposal of the state, all forms of collectivism lead eventually to tyranny.

Friedrich August von Hayek

We remember the young citizens of Nauru being dispatched to all parts as boarders in educational institutions throughout Australia in the 1970s. The Nauruan economy was flourishing on the back of a resources boom in phosphate.  Cue financial mismanagement, poor vision and a lack of diversification and you now have a crappy economy where 90% are unemployed and of those who are employed, 95% work for the government.  It's so bad, they get paid to bear the burden of our sins.

From Wikipedia:

Because of mismanagement, the Trust's fixed and current assets were reduced considerably and may never fully recover. The failed investments included financing Leonardo the Musical in 1993. The Mercure Hotel in Sydney and Nauru House in Melbourne were sold in 2004 to finance debts and Air Nauru's only Boeing 737 was repossessed in December 2005.

Whilst Australia is way more robust, more diverse and therefore more immune from such sudden and catastrophic economic collapse - the warnings of what can happen when a resources boom is squandered are clear from Nauru.

Apart from noting recent incompetent political profligacy, we could also be more mindful of the dangers of Dutch Disease and the need for diverse and deep investment. We could perhaps avoid sacking a heap of scientists, and push money to the future rather than into making babies!

History is there to repeat, but why do our politicians crave (craven?) a repeat, and why are we so complicit in their ineptitude?  Bread and circuses anyone? From the quote above, does collectivism lead inevitably to mismanagement or can we the people intervene (assuming democracy isn't irrevocably busted)?

Meanwhile, after a good rant we need to till the soil, or supervise such noble pursuits...

Tending the garden at the start of growing season

The official garden renovation supervisor...