Why does Melbourne benefit from the money being made miles away in Perth?

20 June 2011

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Andrew Gawith said Australia is rich because it just digs stuff out of the ground and sells it to China. That suggests that that company is making a lot of money and can pay high wages. How does that affect the wage of a worker in Melbourne? Are the mining company's profits extraordinary? If not why not? How do Australians benefit from money being made privately thousands of kilometers away from them?

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