In the 25 years that economic statistics about Indigenous Australians have been available, their economic status has remained intractably low. Poor employment outcomes generate poor economic outcomes which are demonstrated by data on income status. These income gaps are even more stark given that dependency ratios and associated economic burden is far greater among Indigenous people. This presentation is about the future, not the past. Nevertheless, to make progress it is important to make some historical observations about why Indigenous Australians are where they are today.
Land is a factor of production and was a key element in the traditional economy.
Loss of land exacerbates material poverty. Access to welfare in recent years has unintentionally, and paradoxically, created poverty traps from which it is hard to escape. Low past and present household income had prevented, and continues to discourage, household capital accumulation and private investment. A relatively high proportion of the Indigenous population lives in rural and remote areas where there are few economic opportunities. Indigenous Australians have attachment to traditional lands in many economically depressed regions, and this attachment means that they will not readily migrate for employment.