Economists agree that the three Ps of population, participation and productivity are the drivers of economic growth. But a fourth P – pure profits that exceed the risk-adjusted cost of capital – constitute a large and growing part of Western economies, leaving a smaller share for workers in the form of wages.
Donald Trump capitalised on the resulting worker resentment to win the US election. Could the same happen here?
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Craig Emerson is managing director of Emerson Economics. He is a distinguished fellow at the ANU, director of the Australian APEC Study Centre at RMIT and adjunct professor at Victoria University’s College of Business.
Janine Dixon is the Director of the Centre of Policy Studies at Victoria University.
