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Why You Are Feeling Poorer?

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GDP is up, but most of us are still feeling that we have less than we want or need. Why are you feeling poorer? No less an economic boffin than Alan Kohler puts the onus on moribund productivity within the Australian economy. Now, that does not infer that you are not working hard enough, rather it is due to lack of investment by the companies at the heart of our economy. Why is this so? Have a look around at the markets making up our economy. They are largely controlled by one, two or a few giant corporations. Monopolies, duopolies and oligopolies abound. The distinct lack of competition in most sectors in Australia translates as neutered consumer power in the market place. These companies have no market driven need to innovate, as they have massive market shares already. Little to no innovation means they are not investing and that means productivity gains are not happening within the Australian economy.Continue Reading

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The Productivity Narrative Is A Scam

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In: economics, featured, Government, latest post, politics, power

Have you ever thought that you might be being played like a guitar or a puppet on a string? Australia has been on an economic hold for the past few years in response to the high inflation post pandemic. The Reserve Bank of Australia (RBA) steeply raised interest rates to dampen the economy and repeatedly told the community to pull its head in. Understandably, like good citizens we obeyed and economic  growth became sluggish and non-existent. Now, things are better, apparently, with inflation back in their band of acceptability at 2-3%. So, growth is back on the agenda and the conversation turns to productivity and the national figures. The productivity narrative is a scam.Continue Reading