Ross Gittins is the Economics Editor of The Sydney Morning Herald.
We need to unclog the pipes of the capitalist machine.
Streamlining regulation won’t be easily or quickly achieved, certainly not in a three-day roundtable.
When you tolerate businesses fattening their profits by finding ways to keep their wage bill down, you’re helping them cut their own throats.
In Norway, they tax their oil and gas industry heavily and give their kids free higher education. Here, we do the opposite.
We’re considering a hugely expensive cut in the rate of company tax in the belief that this will cause the size of real GDP to grow. Modelling tells a different story.
There are many companies and individuals earning “economic rent” that we can’t do much about. The commission sees this as a problem.
Sadly, I’m not expecting much progress from the much-heralded economic roundtable. Why? Because our democracy has devolved into a self-interested fist-fight.
The Business Council of Australia is unsurprisingly playing spoiler to any attempt by the federal government to improve our taxation system. It’s another sign of big business’ resistance to radical change.
What if, instead of pursuing an ever-higher material living standard, governments focused on improving workers’ job satisfaction? A good way to lose votes? I doubt it.
We’re about to hear many worthies proposing we do more of this or that to improve the economy’s “productivity”.