August 19, 2025
Ross Gittins AM FRSN FASSA, the Economics Editor at The Sydney Morning Herald for more than 50 years, delivered the fourth in the Society’s Lunchtime series of Provocations and Inspirations before an audience of approximately 100 members of the Society and the Union, University and Schools Club (UUSC) at the UUSC on Tuesday, 19 August 2025.
Mr Gittins delivered a thought-provoking and erudite talk on productivity and its stagnation over the past decade in Australia. He began by emphasising the importance of productivity in improving our material standard of living over the past 200 years, explaining that productivity is about working smarter, not harder, and involving the use of economic resources more efficiently to produce more goods and services.
He highlighted that the main way to increase productivity has been through advances in technology, which have allowed workers to produce more with the same amount of effort. However, he noted that in recent years, there had been a pause in productivity improvement, which he attributed to several factors.
One significant factor is the decline in business investment in labour-saving equipment and technology. Ross Gittins pointed out that businesses have not been investing as much in new tools and equipment for their workers, with this contributing to the stagnation in productivity. He also mentioned that the increased concentration of industries, with a few big companies dominating the market, has reduced competition and the incentive for businesses to improve productivity. He further argued that improving productivity is crucial for maintaining and enhancing our standard of living.
While his talk focused on productivity and its importance for economic growth, he noted that it is not the only factor that contributes to our well-being, reminding the audience that there are other dimensions of life, such as the quality of human relationships and intellectual and emotional fulfilment, that are equally important.
In concluding his talk, he suggested that businesses should focus on investing in better technology and equipment to boost productivity and argued that one way of achieving this was to drive wage increases, noting that this in turn would require business to invest to increase their competitiveness thus driving productivity growth — in contrast to the usual financial orthodoxy whereby wage increases can only follow productivity increases.
A gallery of images from the occasion is available for viewing and downloading, and a recording of this important presentation is available on our YouTube channel.
