Today I got around to reading a report – Australia’s Productivity Challenge – which was released last week (February , 2011) from the Grattan Institute, a new research organisation in Australia that aims to provide evidence-based insights into social and economic issues in Australia. The Report is interesting because it exposes some of the bigger lies that are abroad about how well the Australian economy is faring. I have consistently been arguing (over the last 15 odd years) that the neo-liberal policy onslaught that has aimed to erode the power of workers viz capital and create a desperation among the unemployed (making income support harder to get) have created a dumbed down economy – racing to the bottom. One manifestation of this prediction was that productivity would fall as the impact of the budget surpluses (reduced public investment) and legislative changes too their toll. The Report shows that this future is upon us – we are living a delusion – being propped up by China. That is not a sustainable future.