Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.
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John Quiggin 
The famous paper “The Tyranny of Structurelessness” by Jo Freeman may need re-reading in the light of some recent developments in what I would cautiously call the activist left.
The phantom recession in Australia is starting to debase structural change. As businesses delay necessary, sometimes much needed capital investment, the ageing of the stock of capital begins to become non optimal. Capital deepening and capital widening are postponed. The Capital-Labour ratio may undergo a fundamental shift. Older machinery also spends longer off line as maintenance becomes more difficult.
The higher interest rates make it harder for new ventures to launch and survive their infancy. Old firms that should be acknowledging their diminishing returns tend to hide defective performances under the guise of suffering from uncontrollable outside circumstances..
Meanwhile highly efficient workers delay their necessary, and vital, upskilling opportunities for fear of losing employment in a tight labour market. This denies the economy potential gains in labour productivity.
The longer interest rates remain high the more damage that can be done to the underlying structure of the Australian economy. Such damage may not be easy to repair; and can hold back Australia’s economic growth potential.
Gregory, massive ponzi immigration is the largest factor by far that contributes to capital shallowing in Australia. Canada is ahead of us on their similar massive ponzi. The Bank of Canada has called out the damage it has caused there including that of capital shallowing.
Hi John,
Is it possible to inoculate Queensland media against the pending announcement by Premier Crusafulli, in early 2025, that the new LNP govt has “discovered” an economic black hole – to be remedied by sacking 14,000 public servants and selling off stuff to LNP mates?
As you’re no doubt aware, in 2012, even ABC Brisbane just accepted the LNP lie despite two independent audits, by yourself and the Walker review.
Maybe a Guardian column recalling the ABC’s laziness might help?
(For those who came in late – see:
Best,