Treasurer Josh Frydenberg (Image: AAP/James Ross)

Treasurer Josh Frydenberg has worked out that Australia has a productivity crisis, and he's worked out what not to do about it. But he's still clearly at a loss about how to get a stagnating economy moving, if his speech this morning is anything to go by.

Tax cuts off the agenda

The low-profile Treasurer spoke to the Business Council this morning and he deserves credit for bluntly telling the most parasitic and rapacious business lobby in the country that it won't be getting company tax cuts any time soon. Frydenberg and Treasury, it seems, have finally worked out what some of us have been saying for years -- that company tax cuts will simply be wasted in share buybacks and higher dividends, rather than extra investment, if the evidence from the United States and Australia is anything to go by.