Lol
Productivity per worker has been decreasing in Australia for years
Yes mining pours money into the a economy
The Nz low wage trickle down system along with world first housing prices will
Of course inevitable mean more of an export of workers to Aust
NZ GDP per person was above Australia in the 80’s but we had the 87, 98, 08 recessions which Australian powered through due to resources.
Australia mines wealth with huge automation and machinery (per worker) which flows across its economy. We have dairy, agriculture and tourism.
A teacher, nurse or policeman has no difference in productivity between countries despite the huge pay difference. They deserve the same pay but they pay is derived from the productive parts of the economy and in Australia they benefit off the wealth generated by the mining. We can’t simply say pay our teachers the same in NZ and contracts or unions will solve it. We need the national income.
Australia has used their bigger tax take to also invested in infrastructure, is closer to markets, has economies of scale. They also grow their mining to 24/ 7 operations with new mines opening up all the time. NZ has maxed our land and with our income derived from land based use, more population for us makes a fixed income spread across more people making us relatively poorer.
We have pushed efficiencies in farming (more animals per acre, better grass growth, etc) but they come at an environmental cost and can never match simply expanding in a desert with another few mines.
To get GDP growth per worker to rise in NZ we need - a lower population and big rural increases (GE, factory farming, more animals per hectare, more land converted to dairy, etc) all of which we are going away from with the resulting lower GDP per worker. Our prioritisation on well-being, clean/ green and premium products will mean a lower standard of living in NZ than Australia. Were dreaming if we demanding the rights and benefits of growing, developing economies while being a small agricultural place that wants to
reduce its wealth streams like mining, forestry and farming.
Ps all the wealth inequity, poverty problems, etc is easier to solve with a platform of a strong growing productive economy. Trickle down doesn’t flow from rich people to poor. Australia is the evidence wealth flows from productive business sectors through the economy. I’ve always advocated build a strong productive economy to pay for strong social services. This is being economically right, socially left that most NZers want.
