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Chances are that, like most people, you've got a TV, DVD player, VCR, computer, modem, cellphone, nice audio system etc.

If you're even luckier, you'll probably also have a PDA, laptop, digital camera, camcorder, DVD recorder, iPod, etc, etc.

One thing you'll notice about all these items is that none of them are actually made here in NZ -- although 30 years ago our local consumer-electronics industry was quite big and vibrant (albeit supported by import protection duties).

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It seems that our electronics industries are happier and best advised to focus on narrow niche markets where they're not competing against huge multi-national corporations like Sony, Apple, Nokia, etc.

But what about the downside of such an approach?

Well one only has to look at how our trade deficit is blowing out to see that we're spending a whole lot more than we're earning in respect to international trade.

Yes, although our local budget account is showing an embarrassing surplus, the same can't be said when you examine our international trade ledger.

Of course it must be acknowledged that much of this trade deficit is the result of booming oil prices - but surely the cost of all the gadgetry we seem to be collecting is also a factor.

Kiwis are tech-addicts and a nation of early adopters. If it's shiny, hi-tech and has a "wow-factor" then we're first to line up at the sales counter with one (or two) clasped in our hot, sweaty hands.

Is this addiction to hi-tech doing us more harm than good however?

It's hard to see how having a flash new iPod or 3G mobile phone improves our productivity or pays any dividend for the nation as a whole.

So what's the answer?

Should we consider developing our own consumer electronics items? Nah -- if the local assembly industry of the 1970s was any indication of our abilities in this area then the resultant products would be ugly, expensive, unreliable and of poor performance.

So should we ban the import of such non-essential items or lumber them with huge tariffs so as to discourage consumption? Nah, free trade is our mantra and it's a damned good one.

Maybe we should just work on ways of reducing our reliance on fossil fuels. Yes, I think that would be a great idea. Hell, who knows -- maybe we could even try to generate a knowledge-based economy here in NZ. Nah, I think that's been tried too.

Are we doomed? What's your solution?

Go have your say in The Aardvark Forums

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