A Much Deeper Problem Facing Our Economy
Productivity in Australia has been on a downward trend for decades. The latest moribund GDP figures for this quarter are not anything particularly new. Yes, interest rates are hurting the economy, as they are supposed to be according to monetary policy in the Reserve Bank’s inflation beating crusade. The greater diminishing productivity trend is, however, an indication of a much deeper problem facing our economy. Successive governments have overseen the concentration of ownership in nearly all of our business sectors. Duopolies have replaced any real competition in our markets and this damages productivity. Capitalism works optimally when there is competition between businesses operating within sectors of the market. These corporate giants have circumvented this by gobbling up their competition via take overs and mergers. The ACCC and ASIC have been asleep at the wheel in preventing the overconcentration of corporate power in Australia.
Economics Fresh Politics
