I think economic complexitists (TM) are wedded to the physical realm of objects, machines, gizmos and knicknacks. Kind of like how boomer Aussie blokes swell with pride thinking about cars, engines, and auto-manufacturing and curse its demise. The conceptual realm of ideas, bits, software or code, IP, branding, money & finance are abstract and intangible. But I think we can safely say, given the advent of Silicon Valley, that the lion's share of the capital and hence money and profits go to those who deal in that abstract realm.
Abolish most subsidies for non-market sectors like childcare and healthcare. Replace these with simple cash transfers to the poor or young families, enabling optimal allocation based on individual circumstances rather than bureaucratic preferences.
Abolish most real estate sector subsidies. Yes, most countries have similar programs, but as my mother always says, "just because everyone else eats shit doesn't mean you should eat it as well." Replace these with indexed rental assistance for low-income households, students, and young families.
2. ENVIRONMENTAL REGULATION OVERHAUL
Abolish the EPBC Act entirely. Biodiversity represents the dumbest concept in policy making. Replace it with simpler regulations for water and air pollution based on impacts on humans rather than abstract "nature." Human supremacy should be the explicit objective of the Australian government.
This would massively accelerate renewable energy deployment and gas development infrastructure, including pipeline construction that currently faces absurd regulatory obstacles.
3. AUTONOMOUS VEHICLE DEPLOYMENT
Welcome American and Chinese companies to establish self-driving taxi services in Australia. Create explicit regulatory sandboxes for the autonomous vehicle industry generally. Transportation represents the third-largest sector, and autonomous vehicles offer low-hanging fruit for near-term productivity growth.
4. HIGHER EDUCATION AND R&D REALIGNMENT
Reduce subsidies for higher education through more expensive student loans. Use these savings to fund tax breaks for local and international businesses establishing R&D centers in Australia. Provide tax credits for local universities developing research collaborations with top multinational corporations.
This shifts resources from consumption of education credentials toward production of actual innovation and technological development.
5. TAX REFORM
Increase taxes on the mining sector, especially coal and gas exports, to fund corporate tax reductions across other industries. This rebalances the tax burden away from productive domestic businesses toward resource extraction that benefits disproportionately from Australia's natural endowments.
At the state level, abolish payroll taxes by either increasing GST or raising local land and property taxes. Payroll taxes directly penalize employment and productivity, while consumption and land taxes create fewer economic distortions.
6. MIGRATION REFORM
Establish free movement with all high-income (non-Muslim) countries. For other countries, make guest worker programs easier while raising citizenship requirements. Citizenship should depend on an age-adjusted income threshold that's indexed to ensure immigrants demonstrate economic productivity.
This approach eliminates diploma mill exploitation while enabling flexible labor market access for genuinely productive workers.
7. AVIATION AND SPACE INDUSTRY DEVELOPMENT
Encourage eSTOL (electric short takeoff and landing) companies to establish operations in Australia. I have no idea whether this impacts productivity significantly, but micro-airports for every small town in Australia would be extremely cool.
Build a Special Economic Zone dedicated to the space industry, capitalizing on Australia's geographic advantages for launch facilities and minimal regulatory burden for experimental aerospace development.
These reforms prioritize market mechanisms over bureaucratic allocation, human welfare over abstract environmental concepts, and productive economic activity over credentialism and rent-seeking. Implementation would require overcoming substantial political resistance from entrenched interests, but the productivity gains from even partial implementation would prove substantial.
I think economic complexitists (TM) are wedded to the physical realm of objects, machines, gizmos and knicknacks. Kind of like how boomer Aussie blokes swell with pride thinking about cars, engines, and auto-manufacturing and curse its demise. The conceptual realm of ideas, bits, software or code, IP, branding, money & finance are abstract and intangible. But I think we can safely say, given the advent of Silicon Valley, that the lion's share of the capital and hence money and profits go to those who deal in that abstract realm.
A Comprehensive Productivity Agenda for Australia
1. SUBSIDY REFORM AND CASH TRANSFERS
Abolish most subsidies for non-market sectors like childcare and healthcare. Replace these with simple cash transfers to the poor or young families, enabling optimal allocation based on individual circumstances rather than bureaucratic preferences.
Abolish most real estate sector subsidies. Yes, most countries have similar programs, but as my mother always says, "just because everyone else eats shit doesn't mean you should eat it as well." Replace these with indexed rental assistance for low-income households, students, and young families.
2. ENVIRONMENTAL REGULATION OVERHAUL
Abolish the EPBC Act entirely. Biodiversity represents the dumbest concept in policy making. Replace it with simpler regulations for water and air pollution based on impacts on humans rather than abstract "nature." Human supremacy should be the explicit objective of the Australian government.
This would massively accelerate renewable energy deployment and gas development infrastructure, including pipeline construction that currently faces absurd regulatory obstacles.
3. AUTONOMOUS VEHICLE DEPLOYMENT
Welcome American and Chinese companies to establish self-driving taxi services in Australia. Create explicit regulatory sandboxes for the autonomous vehicle industry generally. Transportation represents the third-largest sector, and autonomous vehicles offer low-hanging fruit for near-term productivity growth.
4. HIGHER EDUCATION AND R&D REALIGNMENT
Reduce subsidies for higher education through more expensive student loans. Use these savings to fund tax breaks for local and international businesses establishing R&D centers in Australia. Provide tax credits for local universities developing research collaborations with top multinational corporations.
This shifts resources from consumption of education credentials toward production of actual innovation and technological development.
5. TAX REFORM
Increase taxes on the mining sector, especially coal and gas exports, to fund corporate tax reductions across other industries. This rebalances the tax burden away from productive domestic businesses toward resource extraction that benefits disproportionately from Australia's natural endowments.
At the state level, abolish payroll taxes by either increasing GST or raising local land and property taxes. Payroll taxes directly penalize employment and productivity, while consumption and land taxes create fewer economic distortions.
6. MIGRATION REFORM
Establish free movement with all high-income (non-Muslim) countries. For other countries, make guest worker programs easier while raising citizenship requirements. Citizenship should depend on an age-adjusted income threshold that's indexed to ensure immigrants demonstrate economic productivity.
This approach eliminates diploma mill exploitation while enabling flexible labor market access for genuinely productive workers.
7. AVIATION AND SPACE INDUSTRY DEVELOPMENT
Encourage eSTOL (electric short takeoff and landing) companies to establish operations in Australia. I have no idea whether this impacts productivity significantly, but micro-airports for every small town in Australia would be extremely cool.
Build a Special Economic Zone dedicated to the space industry, capitalizing on Australia's geographic advantages for launch facilities and minimal regulatory burden for experimental aerospace development.
These reforms prioritize market mechanisms over bureaucratic allocation, human welfare over abstract environmental concepts, and productive economic activity over credentialism and rent-seeking. Implementation would require overcoming substantial political resistance from entrenched interests, but the productivity gains from even partial implementation would prove substantial.