When I started in mining, there was about 700 workers. The same production now only required about a dozen.
@danieldunstan
Жыл бұрын
So per hour of labour productivity increased, but at the cost of 100s of jobs!
@johnwp111
Жыл бұрын
Phillip Lowe is only speaking on his personal experience, case in point, Phillip knowes his wage of $900k a year is far to high given his competency, experience or output.
@richardboult2187
Жыл бұрын
Have we found our next Clarke and Dawe?
@tpq__
Жыл бұрын
Thanks Rich and Matt for a great video. I am trying to learn more about economics, and I have a question about how economists think about "productive" activities that do not translate to GDP? For example, with COVID and inflation, our household (and others) made rational choices to start a garden, cook at home, make DIY repairs, create art, and spend more time caring for the old and young. All of these activities involve labour and produce value, but they happen outside of markets and tend to reduce expenditure. Assume this happens en masse, I assume GDP would reduce, but wouldn't this reduction in GDP actually be due to households, in fact, "working harder"? Are we actually more productive or less productive? Thoughts? Referred reading welcomed.
@garnethawkins
Жыл бұрын
You are confusing physical productivity and economic productivity. Economic productivity is only reflected in gross domestic product per capita, or in a more generalised sense, productivity that *positively* impacts the local and national economy. DIY projects and self sufficiency whilst productive in the physical sense, *negatively* impacts the economy as less money is changing hands, thus reducing economic productivity. Hope that helps😊
@tpq__
Жыл бұрын
Ah, I wasn't aware of that distinction. That's very helpful, thanks!@@garnethawkins
@danieldunstan
Жыл бұрын
Aaaah the productivity phallacy, demand for exponential growth in a finite world paired with unreal wages not tracked against actual hours worked (i.e. not adjusted/indexed to inflation).
@Gumardee_coins_and_banknotes
Жыл бұрын
If wages do not go up, so productivity does not either, been that ways for 10+ years lol.
@The8224sm
Жыл бұрын
May I respectfully suggest a surefire way of increasing productivity? Employers should be allowed to beat lazy staff with a stick, if the stick breaks, the cost of the stick could be deducted from their salary. A cost-effective method of incentivising staff to work harder for the same pay.
@petermacgillivray4873
Жыл бұрын
Productivity, always discussed in a business context. Productivity inside the home environment, and the challenges just to maintain a liveable habitat. At the moment, in the household, time equals productivity , and the purchase price is CO2.
@danieldunstan
Жыл бұрын
Why hasnt the RBA been asked to produce reports with actual worked examples of these wage growth metrics? I.e. a barber scenario, a council gardener scenario etc etc... im sure they have some undergrad who could put that public report together...
@grasshopper9977
Жыл бұрын
Bloody good video summarizing a bloody ridiculous situation.
@pheonixedfound723
Жыл бұрын
Raising cor[porate taxes will see corporations invest in R and D to reduce their tax burden as opposed to funnelling higher profits to shareholders and CEO's.
@tomh9894
7 ай бұрын
No, they'll leave the country for more competitive tax rates, or go bust
@alanwilliams8532
Жыл бұрын
And increased wages are pushed onto the consumer as increased cost of production and increased prices. You have also failed to mention the price gouging by fuel, energy, food and utility providers, not to mention the banks interest rate increases on mortgages.
@MrPatmav
Жыл бұрын
If I bought a truck and removed the speed limiter , I would be able to get to my destination faster . Therefore I could do more loads , that would make me measurably more productive . Any problems with that ?
@SuperRagingStorm
Жыл бұрын
Paying your employees a proper living wage would be the best way to increase productivity. No one wants to work themselves to death for a wage that doesn't even cover basic living.
@millertas
Жыл бұрын
Come on, when are you going to understand? Everyone is under worked and overpaid except me.
@nata9907
Жыл бұрын
I'm confused about the "Covid made productivity go down" argument, while showing a graph that clearly shows productivity going up from approx Mar 2020 to Mar 2022. Can someone please explain?
@haadiP
Жыл бұрын
i cant explain it
@HahaDamn
Жыл бұрын
The lay off of service jobs at a higher rate than manufacturing and other sectors drove an increase in average labour productivity. It really should be expected to see it roll back as these jobs get added back
@glennoc8585
Жыл бұрын
Productivity with better tech is great in a world of high competition where the bosses ultimately can drop their prices. That's a win for the end consumer and long as you have people engaged in high employment. I think productivity has lagged in Australia as wages have stagnated and companies have lagged in invest into the latest technology compared to other western countries. Australia did reward worker with higher wages but workerd were expected to output higher levels of productivity. Ive personally experienced this working here and overseas and so have others made this evaluation. I think that has changed as more migrants aren't willing to run on the job as they've come from a more work to pay ethos and younger Australians eill follow suit. Productivity and worker attitude in the UK and Europe is better now than in decades past as wages and income taxes have had significant overhauls. Until Australian low paid workers see the tax threshold lifted or a rebate of $5000 on income under $50000 then participation and output will not increase. Even the UK minimum wage is almost on par with Australia whilst they enjoy a tax threshold close AUD 25000(we are stuck at 18200) and a lower tax rate band after the 20%.
@CloudConsultoo
Жыл бұрын
I work for "Cloud Consultoo Australia": how does it drive productivity?
@freethinker4991
Жыл бұрын
We need to remove unproductive jobs from the economy. The first is the politicians and bureaucrats who only are in there role to bludge on the Australian tax payer. The First politicians that filibuster needs to be sacked.
@JJ-mc8lu
Жыл бұрын
Buy yourself an automatic coffee machine at home and dont go to a cafe multiple times a day to buy the expensive bathwater. Do this and watch your wealth rise. I have!
@Marie-ml3zg
Жыл бұрын
I just knew these economists were clueless.
@ozzybloke4830
Жыл бұрын
hypocritical coming from someone who can't even do his own job properly! "No Interest rate rises till 2024" Yeah mate your only 12x wrong so far!
@tomh9894
7 ай бұрын
So your suggestion is lower interest rates (and let inflation run rampant), jack up wages (supply and demand be damned - watch companies collapse and jobs go offshore)), and tax profits to stop inflation (killing the profit motive). What planet are you guys on? In which economy does this prescription work?
@kylecoffey3132
Жыл бұрын
Philip lowe earning his 1mil a year probably not including bonuses is out of touch. His fix for people struggling is that they get second jobs and move in with other families just isn't actually possible. He is too out of touch from up high in his castle. The guy should be sacked
@Markus-ht5uc
Жыл бұрын
'PromoSM'
@JoshDGade
Жыл бұрын
Philip lowe needs to go.
@jinnantonix4570
Жыл бұрын
Productivity is not going down because of higher interests rates, it is because of high inflation and lack of business confidence. Philip Lowe is not "confused" - he only has one lever to stem inflation, and that is interest rates. It is worrying that supposedly qualified economists like Matt and Richard want to imply that we should not be increasing interest rates to stem inflation. Instead they appear to promote the idea that government should set policy to put more money in people's pockets, which will actually spur inflation. [facepalm]. Philip Lowe is also obviously right about ensuring wages don't go up, because that also spurs inflation. What needs to happen is that businesses invest in productivity despite high inflation, and that is all that Philip Lowe is saying. He is not confused, he is right. Matt and Richard are wrong.
@TishamDhar
Жыл бұрын
Lowe needs to be given a lever to channel spare cash floating in the economy to a pool that businesses can use to invest in automation. Perhaps via Super or a Sovereign Fund.
@Gumardee_coins_and_banknotes
Жыл бұрын
Lowe is a fraud who has no idea what is happening.
@jinnantonix4570
Жыл бұрын
@@TishamDhar given by whom?
@TishamDhar
Жыл бұрын
Usually a constitutional edict governing the RBA, same things it established it and gave it the one lever it has now.
@GhostRangerr
Жыл бұрын
So corporations/giant retails can rise their prices as they want & get away with fat profit margins but when the average Joe asks for a better wage it's suddenly a problem for the economy? If wages can't catch up with the costs of things, then there's clearly something wrong with the system
@Somebody_u_know
Жыл бұрын
😂😂😂
@weirdo1083
Жыл бұрын
Vote for katters australian party.
@Gumardee_coins_and_banknotes
Жыл бұрын
Oh the looney Tunes lol.
@weirdo1083
Жыл бұрын
@@Gumardee_coins_and_banknotes Not sure what you are on about mate Bob Katter is more Labor then the current ALP.
@Gumardee_coins_and_banknotes
Жыл бұрын
@@weirdo1083 Gee, One Nation is more Labor than Bob Katter.
@weirdo1083
Жыл бұрын
@@Gumardee_coins_and_banknotes I wouldnt go that far.
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