Beijing's behemoths want more iron action
WITH the Australian economy at or near full capacity utilisation, infrastructure constraints have emerged as a supposedly binding constraint on future growth. We have access to sufficient quantities of two of the four required inputs (capital and land) but insufficient quantities of the third and fourth (labour and an experimental approach to sourcing it). Treasury secretary Ken Henry informs his staff that to increase output we need first to expand supply capacity - at least one of the three Ps - population, participation or productivity. Without that supply expansion, at full employment, in...
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photo: AP/Ng Han Guan
