Rudd's productivity growth targets need investment in research and development

AUSTRALIA has stunning jobs growth coupled with moderate output growth, which gives you low productivity growth.

Tony Abbott has made up ground on Kevin Rudd in the national popularity stakes.

The Rudd government is apparently using a Treasury report on the budget challenges over the next 40 years “to develop an election pitch based on returning productivity growth to the rapid rates achieved in the 1990s”.

We pass over Treasury's abysmal forecasting record, including a peak unemployment rate of 8.5 per cent, designed doubtless to scare the Labor government into some good old-fashioned Keynesian spending.

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