Reserve Bank productivity claims set the galahs shrieking

Now we have reached the full developed pet shop of productivity “discussion .. As Paul Keating said the economic debate in the late 1980s: “If you enter any pet shop in Australia, what Galah will speak is microeconomic policy.”

The government’s bad thought productivity round table table is almost not on us-the interest group and the union hacking and the union-Rezerv Bank, which seeks every rent in the country, announced yesterday that efficiency assumptions have reduced its efficiency assumptions at the last time. Monetary Policy Declaration.

It is a useful distraction of the fact that a ventilated RBA Monetary Policy Board has been discredited after the Hining error to ask for “some more information, and that it is forced to reduce interest rates. Where is the graduality?

RBA now envisages a 0.7% increase in efficiency for the next two to five years. Low productivity means that the economy will not grow so quickly, so the bank has reduced economic growth forecasts by about 0.2 percent from 2027 onwards.

Inevitably this pet Media as proof of the government’s urgent need do something For inflation hawks in places like – and Australia Financial ReviewMore evidence that interest rates should not fall further. AFR’s best Galahs, Michael read And John KehoeHe went ahead. Michael and John “Labor Expenditures will raise inflation”And“ companies accusing for inflation wrong And populist“Unfortunately, Warren Hogan was apparently not present call for interest rate increases.

Inevitably, the RBA showed the flogged daughter of the debate of productivity for a part of the decrease in productivity estimation. However, only once, we want to see that someone speaks about the outcome of the maintenance economy efficiency debate: a society that fits an aging society, especially baby explosions and tax policy in favor of Gen-X, means significantly lower demand for productivity and economic growth.

However, as RBA is not only in the female care sector, RBA accused the ultimate blockey industry and miners.

Productivity in the mining sector has fallen sharply in recent years and has decreased by about 20% in the last five years. Some have suggested that this reflects attempts to benefit from the latest high prices by touching potentially less productive source deposits using additional labor instead of additional capital investment. Similar dynamics were evident in previous commodity cycles.

Due to the high level of investment and automation level (especially in our gigantic iron ore mines in Western Australia), it should be remembered that mining is the most productive industry of Australia – but this means that the changes in productivity in mining have a major impact on general efficiency compared to the relatively low level of employment.

And RBA is true – investors of mining companies and investors, which contain most of us through our pension funds, have long been preferred to expand existing mines to touch less accessible deposits instead of investing in completely new mines. It is lower cost, but it is less productive in terms of general production.

Economist and National Treasury Saul Meslake discussed the role of mining in slowing productivity At the end of 2023. He realized that labor productivity has fallen almost 20% since December 2019, and that weak productivity and care economy in mining would be lower than the effects of inflation on inflation.

Some of the miner’s worse performance depends on pandemia. However, there were other “one -time” factors: China’s four -year Australian Australian thermal coal imports and some types of copper forced the demands to find new markets by disrupting demand.

And then there is air. Mining productivity, such as agriculture, is strongly affected by weather conditions. The heavy rain, floods and storms affecting the production and exports of the iron ore hit Pilbara again and again. Rio Tinto also suffered from the problems of port and ore quality in some of the company’s mines. The 2019 Bushfires had a small impact on mine output in NSW and Queensland regions, followed by 2020 floods and storms that significantly affected mines and ports along the east coast and especially in the central Queensland and Hunter Valley coal export complexes. In Queensland and NSW, there were floods affecting coal mining and export volumes in 2021 and 2022.

Cy cyclones such as tropical cyclone megan disrupted operations and cause damage (forcing the world’s largest manganese mine in Groote Eylandt to close for more than a year in 2023). In most of the WA Gold Mining Sector, heavy storms and rain have stopped mining in more than a dozen mining in recent years, limited production and increased costs.

Throughout such events, like mining companies and other enterprises, it holds the personnel in the hands of the ongoing labor shortage. Less output plus more workers are equal to lower productivity.

Although individual weather events also have a one -in -law, they become more frequently considering the climate crisis fed by the deterioration of coal and gas exports. The slowdown of our demand for our commodities in China will have effects on the production of Australian mining, such as Trump’s tariff chaos.

RBA correctly notes that there is a problem of productivity even after switching to maintenance economy and mining. However, both of them show that there is no regulatory revision that will solve a magic reform, tax cliché, attack on workers’ rights, government investment and productivity, despite all the creaks from the Galahs. The deceleration is directed by factors such as demography and climate that it cannot do anything, as it is elsewhere in the Western world, or in the case of climate – in case of climate.