The Economy, Stupid Australia is 'freaking amazing' - will that last?
Oct 23, 2025
Justin Wolfers, an economist and public policy professor, discusses Australia’s economic success, attributing high living standards to strong institutions. He contrasts Australia's inclusive institutions with Argentina's extractive ones. Nikki Hutley, a macroeconomist and Climate Council councillor, highlights issues of inequality and climate inaction. Both guests emphasize the need to defend these institutions and advocate for a cooperative mindset over zero-sum thinking. Despite challenges, they express hope for Australia's future and the potential to export its model.
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Institutions Are The Real Wealth Builders
- Australia’s prosperity comes less from resources and more from turning inputs into high-quality outputs via effective institutions.
- Justin Wolfers frames this as superior “recipes” (institutions) that boost productivity and wellbeing.
Argentina Versus Australia Over A Century
- A century ago Argentina and Australia were economic siblings with similar resources and prospects.
- Over the next century Argentina developed extractive institutions while Australia built inclusive institutions and diverged sharply.
Electoral Rules That Keep Leaders Honest
- Specific democratic features—compulsory and secret voting, independent boundary drawing—strengthen accountability.
- These logistical rules reduce elite capture and force politicians to persuade voters rather than rig outcomes.
