February 21, 2020
For all the talk about ‘uninterrupted economic growth’, Australia’s economy has underperformed in recent years. Economic growth has slowed, wages growth has declined, and productivity is in reverse. For the median household, living standards have fallen since 2013. At the heart of the malaise is a complacent federal government, which has done little to encourage dynamism in the economy. Too many sectors are dominated by cosy monopolists, too few start-up firms are challenging the incumbents, and there is too little genuine innovation. Over the past generation, the Australian economy has been lucky. But without more diversity and dynamism, our economy risks failing to deliver the outcomes that are essential to long-term wellbeing.