More investment is required to drive productivity. We won’t get this without cutting red tape and making the things more business-friendly.
Already a subscriber?Can Australia compete for investment on the global stage? That question will be front of mind for me this week.
Why? Because we need more investment in Australia to drive productivity – the most important economic indicator of all. And we won’t get that investment unless we cut red tape and make the investment environment more business-friendly.Why does this matter? Because everyone’s standard of living depends on productivity. According to the, labour productivity contributed more than 80 per cent of the growth in Australia’s living standards over the past 30 years.
Being more competitive and winning more business investment is one of the paths to greater productivity. If a business decides to double down in Australia and outlay the capital to automate some of its operations , that efficiency drives productivity. Those workers are freed up to engage in higher-value, more productive tasks.
You can’t tackle inflation properly without tackling productivity, and we won’t get enough productivity growth without attracting more investment – which is most likely done by simplifying planning, taxes and regulation in general.
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