Macrobusiness.com.au, continues its economic critique of Australia’s present mass immigration program. Apart from the social misery that this unprecedented influx of people is causing at all levels, there has been a case made that two decades of high immigration has harmed Australia’s productivity growth and standard of living. Infrastructure, housing, and business investment has not kept pace with the population surge. According to economist Gerard Minack, “Australia’s economic performance in the decade before the pandemic was, on many measures, the worst in 60 years.” “Per capita GDP growth was low, productivity growth tepid, real wages were stagnant, and housing increasingly unaffordable. There were many reasons for the mess, but the most important was a giant capital-to-labour switch: Australia relied on increasing labour supply, rather than increasing investment, to drive growth.”
“Australia’s population-led growth model was a demonstrable failure in the 15 years prior to the pandemic. Remarkably, the country now seems to be doubling down on the same strategy. The result, unsurprisingly, is likely to be more of the same.”