Australia’s economy is growing, but the gains aren’t keeping pace with the past. Domenique and Paul open with a sharp focus on stalled productivity growth and why it matters. Along with how it shapes living standards, and why it feels like today’s prosperity is being borrowed from tomorrow. From there, what’s in the news takes over. We discuss housing prices climbing for the sixth straight month with Darwin leading the charge, commodities bouncing around on tariff headlines, solar panels and home batteries taking off as energy bills keep rising, and Trump’s tariffs ruled illegal by a federal appeals court but still hanging in limbo until the Supreme Court decides.

With the headlines as backdrop, they turn to the hand that’s steering the bigger story: Australia’s productivity puzzle. Despite decades of growth, productivity has flatlined, and in some years even gone backwards. Domenique and Paul dig into why including slow adoption of new technology, a heavy reliance on mining, and government spending propping things up instead of real efficiency gains. The result is a gap with other economies that are moving faster, and GDP per capita that’s slipping instead of rising. They call it a kind of “intergenerational theft,” where today’s Australians are coasting on the work of earlier generations rather than building new strength for the future.

The conversation closes with the invisible connections between energy and housing. Homeowners are cashing in on rooftop solar and rebates, trimming bills and even selling power back to the grid. Renters are largely left out with less than 10% of rental properties having solar. They’re stuck shouldering higher energy costs with none of the upside. Domenique and Paul go back and forth on whether governments should give landlords stronger incentives to install panels, or whether the real fix is helping more renters become owners in the first place. Either way, it’s a clear example of how ownership, incentives, and policy end up deciding who gets ahead and who falls behind.

Episode Highlights: 

[00:06] Domenique and Paul open with protests, bridge closures, and a surprise story about Nauru’s costly deal with Australia.

[03:07] They outline the episode structure: what’s in the news, the hand on productivity, and the invisible link between housing and energy.

[03:44] Housing prices continue rising nationally, with Darwin up 2.2% and listings still down 20%.

[04:27] Commodity updates: iron ore up 6%, oil down 4.1%, copper whipsawed by U.S. tariffs.

[05:18] Rooftop solar now makes up 20% of Australia’s electricity, with battery installations up 62% year on year.

[07:04] Trump’s tariffs were ruled illegal by a federal appeals court but left in place pending Supreme Court review.

[08:36] The hand turns to Australia’s productivity puzzle, with stalled growth, weak tech adoption, and reliance on mining.

[13:32] Discussion of services, government spending, and how low productivity erodes wealth slowly over time.

[17:07] Tax reform flagged as the biggest lever to unlock productivity gains, though political will is lacking.

[19:40] Productivity explained as growing the pie with efficient sectors like mining, banking, and education.

[21:26] The invisible emerges in energy and housing, with one in three households now having rooftop solar.

[23:30] Less than 10% of rental properties have panels, while wealthier households capture most benefits.

[27:43] Debate over government incentives to push solar into rentals versus broader solutions to help renters buy.

[31:03] Broader fixes suggested: education, jobs, health, and housing supply to move renters into ownership.

[34:55] Closing thoughts on the government's role in providing core services like education, health, and safety.

Resources & Links Related to this Episode

• The Invisible Hand Podcast
• The Productivity Commission
• The Reserve Bank of Australia (RBA)