Why Australia is losing its competitive edge

Sitting back and waiting for policy settings to ‘fix’ the exchange rate and high wages won’t do much to resolve Australia’s productivity crisis. Businesses must step up their investment or fall behind.

A lot of the rhetoric we’ve seen concerning Australia’s prosperity misses the point. Certainly the country needs to be more competitive and ‘productivity-enhancing reform’ should be a key focus of every government in every year. No reasonable person would dispute that and discussions on how to achieve these are always worthwhile. The problem to date is that the debate is being focused or framed incorrectly.

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