29 Jul Poor Australian productivity – why all the fuss?
Key Points
- The last decade has seen productivity stagnate in Australia. This has curtailed growth in living standards and real wages.
- Policies to boost productivity include: deregulation; more housing supply; a cap on public spending; and tax reform.
- Unfortunately, the political pendulum has moved against many of the necessary policies and the lack of a “crisis” like Labor faced in the 1980s may make many reforms difficult.
- But the good news is that the Government now recognises the problem and is starting to focus on how to boost it.
