Australia is facing an income recession warns economist Janine Dixon from Victoria University. To fend it off we need to increase different types of productivity.
Income per capita, one way to measure living standards, is 3% below the peak of 2012 and this is tied to slow growth in Australia’s economy.
This not necessarily a big problem for richer nations like Australia but low income earners will still feel the pain of slower growth in their incomes, Dixon explains.
One of the ways to improve productivity is not just via investment but infrastructure, things that facilitate a better workforce, like good roads and fast internet.
Authors: Jenni Henderson, Assistant Editor, Business and Economy, The Conversation