Over the past week I have presented why I believe that this decade will go down in history as a ‘lost decade’ for Australia, in reference to the anaemic income growth and rising unemployment that are likely to persist throughout the remainder of the this decade as the once-in-a-century commodity price and mining investment booms continue to unwind (see here and here).
Today, I want to take readers through why I believe that most economists in Australia do not recognise the significance of the structural adjustment taking place, which is likely to render their assumptions about the economy redundant.
