Australia’s land bubble has choked the real economy

Advertisement

By Leith van Onselen

Dr Gavin Putland has published a research report for Prosper Australia, entitled Trickle-Up Economics Assessing the impact of privatized land rent on economic growth, which shows that since the Second World War, there has been a negative correlation between Australia’s total land price and the rate of economic growth, with rapid land price escalation squeezing both labour and capital.

Accordingly, the report argues that land reform is the key component to a fairer and smoother rate of economic growth, whereby those at the lower end of the economic spectrum become key drivers of the economy.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.