For some time we have been banging on about our population growth while our politicians keep telling us that population growth is essential for our economic growth. But do we really understand what is actually growing?
The Australian Bureau of Statistics (ABS) reports our economic growth using the increase in GDP (Growth Domestic Product) but what is not usually understood is that there is a disconnect between GST and our living standards. Actually while GST has been continually growing, the ABS has confirmed that our living standards have been shrinking. While GST has had uninterupted growth for many years, annual growth in real GDP per capita has been 1 to 2 percentage points lower.The reality is that our individual prosperity depends upon economic growth exceeding population growth so while we are experiencing population growth, largely through migration growing faster than our economy, we are essentailly going backwards.
Because it does not serve the interests of our politicians due to large political donations by the business lobby groups (who repesent big business which relies upon the influx of new customers largely through migration) the government continues to report GDP growth rather than GDP per capita. The governments of both major parties have been using smoke and mirrors to deliberately mislead us.
BRAG raised this issue with Josh Frydenberg (our local federal member) but we don't expect to see any real change. It will need the force of numbers to push this issue so what about telling your local politicians that you want our economic reports based upon
Real GDP per capita not the misleading GDP