Oliver's Insights: Poor Australian productivity – why all the fuss? And what to do about it?

The key points are:

  • 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.

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