From SBS:
The economy is struggling to grow because Australians get too much pay, too much annual leave and are too hard to fire, an American economist says.
Bob Baur, chief global economist at Principal Global Investors, says the local labour market is in need of reform if the economy is going to shift from its dependance on mining for growth.
Mining investment is dwindling and iron ore isn’t fetching the prices that it used to, but other sectors have yet to step up to fill the breach.
Dr Baur says Australia needs to start making things again, and exporting its services, like education.
…”You’ve got tonnes of wonderful natural resources here but don’t export the resources – export them as a car, or a computer or a television set, or furniture.
Obviously the chap has not been here long. For his edification: manufacturing is falling throughout the Western world; manufacturing must make room for mining and services; manufacturing is a drag on productivity.
