Also, I want to add Neil Wilson's reply to the aforementioned blog post:
“There hasn’t been much reaction today from the moocher class in Australia to the report.”
Isn’t it the case though that this is exactly what is to be expected when you have a system that requires the private sector to create *all* the jobs, yet the private sector only improves productivity and output if it is optimised towards *eliminating* jobs by automating them away.
I’ve spent a lot of time in the past on business systems and the inefficiency of operation isn’t a public/private sector divide at all. It is a large/long lived operations vs. young/short lived operations – with the latter having the most efficient structure.
In the former you get a build up of entropy over time that eats away at efficiency. If we want optimal output, then perversely we need to have a system where operations are destroyed and reconstructed on a regular basis.
Unfortunately that requirement bangs right up against the natural human loss aversion problem. We don’t like to see firms fail and operations change.