The politics of productivity growth in Australia

Abstract

ABSTRACTA prominent feature of recent Australian economic discourse is the assertion that there was a ‘productivity surge’ during the 1990s, resulting from the neoliberal microeconomic reforms inaugurated in the early 1980s. However, the evidence for the productivity surge is routinely overstated, thus undermining the rationale for many past and future microeconomic reforms. There is also substantial evidence that productivity growth can have perverse socioeconomic and/or environmental consequences. Nonetheless, many policymakers, economists and commentators remain preoccupied with increasing productivity growth. This article examines the Australian productivity debate and concludes that this is driven more by neoliberal norms than socioeconomic necessity. These are manifest in a disciplinary discourse that constructs productivity growth as a national imperative, unencumbered by negative social and environmental externalities.