The Albanese government’s Economic Reform Roundtable has far more to do with political power than how best to boost the rate of production at Australia’s factories or mines. The agenda was far narrower than the breadth of problems facing Australia and the attendees. With a few notable exceptions, those assembled were more likely to demand more tax cuts and more cuts to government spending than to question why decades of doing precisely that has delivered not just record low productivity growth but also record low quality in our essential services.
One of the core beliefs that unites Australian chief executives, the Department of the Treasury, the Productivity Commission and most of the Australian media is that the less tax a country collects and the less money it spends on essential services, the better its economy will perform. If only there was some data to back up their strong feelings.
According to the pinko lefties at the International Monetary Fund (IMF), the World Bank and the OECD – now headed by that well-known progressive Mathias Cormann – Australia is already one of the lowest taxed countries in the developed world and has one of the smallest public sectors. Yet despite decades of taking the advice of organisations such as the Productivity Commission and Treasury, resulting in decades of deregulation, privatisation and tax cuts, Australia has witnessed a collapse in productivity growth.











