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Economist Greg Jericho has posted an interesting article in The Drum, whereby he argues that it is not workers that are responsible for Australia’s poor productivity performance, but rather that capital investment isn’t contributing to growth like it used to:
In essence the two major drivers of national income are productivity and the terms of trade. In the 1990s our incomes grew through strong productivity growth, in the 2000s it grew mainly through strong growth in the terms of trade as the price for iron ore and other commodities exploded.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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