One of the big policy debates in Australia and around the world right now is whether economic growth will be slower in the future than in the past. Nearly a decade after the Global Financial Crisis and economic growth remains weak in many rich nations. Australia has been an exception to the malaise, but growth has slowed as the mining boom winds down. A growing number of voices are wondering whether we’ve entered a “new normal” of slower economic growth, which would have big implications for Australians’ future living standards, our public policy choices and the state of our politics.
In part 2 of this two-episode podcast, with the help of Australian Perspectives Fellow Brendan Coates and Productivity Growth Director Jim Minifie we follow up on our discussion into the evidence that economic growth may be slower in the future and what might explain it with an in-depth chat about what policymakers could do in response.
Further readings
To help listeners navigate the debate, below are a few references cited in the podcast discussion.
John Daley et al, Gamechangers: economic reform priorities for Australia, 2012. If Australian governments want to increase rates of economic growth they must reform the tax mix, and increase the workforce participation rates of women and older people. Together these game-changing reforms could contribute more than $70 billion to the Australian economy. Governments should concentrate their limited resources for economic reform where they can have the greatest impact on Australian prosperity.
John Daley et al, Balancing Budgets: tough choices we need, 2013. This report examines all realistic reforms that would contribute $2 billion a year or more to government budgets. It favours reforms that are big enough to make a difference, do not produce unacceptable economic and social effects, and spread the burden of reform across the community. Sharing the pain is not only fair, it makes change easier to sell to the public.
John Daley et al, Orange Book 2016: Priorities for the next Commonwealth Government, 2016. This report surveys policy recommendations from seven years of Grattan Institute reports and outlines what the incoming Commonwealth Government should do to improve Australia.
Jim Minifie et al, Stagnation nation, Grattan Institute, 2017. Is Australia at risk of economic stagnation as the mining investment boom fades? While the decline in business investment is no cause for panic, policymakers must do more to ensure we remain a dynamic, growing economy.