Full Story Labor go looking for an economic legacy
Aug 18, 2025
Tom McIlroy, Chief Political Correspondent at The Guardian, dives into Labor's economic summit and its potential to reshape Australia's future. He discusses the government's ambition amidst political risks and explores shifting focus from productivity to broader economic solutions. McIlroy highlights the significance of enhancing productivity for better living standards and outlines the pressing economic challenges facing younger generations. Expect discussions on innovative reforms like a four-day work week and the delicate balance between ambitious proposals and realistic outcomes.
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Why Productivity Matters
- Productivity measures how much workers contribute to output and living standards through pay and output per hour.
- Improving productivity both grows the national 'pie' for services and raises household take-home pay.
The Scale Of The Productivity Loss
- Australia has seen barely any productivity growth since 2016, costing workers large potential pay rises.
- Ken Henry estimates the average worker missed about $500,000 in potential pay over 25 years due to sluggish productivity.
Low-Hanging Reform Options
- Some reforms are 'low-hanging fruit' that most parties agree on, like cutting red tape and speeding approvals.
- Streamlining building approvals and removing regulatory 'hairballs' can boost construction and productivity quickly.