Australia’s economic fortunes are not quite as bright as they once seemed. The economy has entered into a period where it performs sluggishly at best. No amount of denial changes this simple truth.
Along with the decline in growth rates over the long run, came a rise in financial investments in other than the real economy that is in the making of things. Commodity and real estate speculation, futures markets and currency speculations, and of course, the growth of debt were the high performers. These trends have fed a tendency to more and bigger economic bubbles and greater economic instability.
The last two decades have seen an unprecedented rise in the quantity and proportion of investment funds used to take over existing businesses. The product has been a significant rise in the degree of monopoly in our economy. It means that fewer people are making the economic decisions that affect us all, tied up with a notable rise in the proportion of foreign ownership.
Government policies responding to the existing economic problems have always focused on redistributing national income upwards. The argument is that by doing this you create a better climate for investors. Consequently, they will invest more and this will overcome economic problems. The tasting of the pudding is in its eating. It has been tried the last 40 years and found seriously wanting. There is no valid excuse for continuing down the same road.
Furthermore, the lack economic democracy alienates the majority and works against participation in decision making. It strangles initiative, steals away reward for effort and broad based participation in building our future.
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