10 years later, Phil Lowe still hasn’t worked it out


I like Phil Lowe. He means well. He didn’t parley his public service into a job at Macquarie Bank.

But, Phil, this is garbage:

While inflation slowed from a peak of 7.8 per cent in December 2022 to 4.1 per cent in December last year, Lowe said the “missing piece” for central banks to be able to sustainably lower interest rates was a slowdown in the growth of underlying services prices which have proved more stubborn

“At the moment, productivity growth is close to zero,” he said. “If we can’t get stronger productivity growth, everything’s going to get harder.”


The immigration-led labour market expansion economy does not do productivity or wage growth.

It shallows capital, making us less efficient, and crushes wages with the permanent cheap foreign labour supply shock.

It’s not that hard to figure out and it’s not racist to observe its effects.


We make plenty of jobs, but they are all low and entry-level, delivering pizza or entering data.

There are literally Nobel Prize winners driving Ubers around our cities.

This is the disproductive nature of the immigration labour force expansion-led economic growth model.


It is all over and through the data. It is why Phile Lowe was wrong about wages for ten bloody years at the RBA:

The immigration-driven labour force expansion economic model annihilates living standards such that everybody needs to work seven jobs just to stand still, and when AI arrives in earnest, it is going to wipe out the entire model.


Meanwhile, the big winners are the property owners who jack rents by 50% per annum and the national young and most vulnerable are tipped onto the streets.

It is an absolute ^%$#ing outrage.

To his credit, Phil Lowe suggested implementing the Henry Tax Review.

But that still won’t fix it.


We need investment for productivity not more warm bodies.

Slash immigration by 90% and embark on a massive build-out of crushloaded infrastructure and dwellings.

This is %$#@ing Economics 101.

Why am I having to teach the former RBA head?

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.