Part 7/9:
This mismatch, he explained, leads to a decline in the capital-to-labor ratio, resulting in "capital shelling"—a situation where workers have fewer tools and equipment to work with, thereby reducing overall productivity. Additionally, increased population density has exacerbated urban congestion, further hampering productivity. Looking ahead, Van Onselen projected that Australia's population could grow by another 13.5 million over the next 40 years, effectively requiring the development of multiple new major cities, a seemingly improbable feat.
Therefore, Van Onselen advocated for a slowdown in population growth as a practical measure to allow infrastructure, housing, and business investment to catch up, ultimately improving productivity outcomes.