The economics of the Federal election result
About the author:
- Author name:
- By Michael Knox
- Job title:
- Chief Economist and Director of Strategy
- Date posted:
- 20 May 2019, 12:00 PM
Labor's policy of taxing capital to subsidise consumption would have resulted in permanently lower growth. I explain why in my presentation to the Morgans network this morning (featured below).
"If you spend $1 in investment, that adds about $3.80 to the Australian economy. If you spend $1 in consumption, that adds about $1.30 to the Australian economy. Investment is far more powerful as an influence on the Australian economy than consumption is. So if you are going to tax investment and spend the money on consumption, the result must be that over time, you are taking more out of growth than putting back into it."
View the full presentation below where I also highlight why I think fair value of the ASX200 will run up to 6500 points in the coming months.
View more of my analysis by clicking on 'economic strategy' in the popular topics list to the right of this page, or listen to my full playlist of podcasts on SoundCloud. Alternatively, contact your Morgans adviser or nearest Morgans branch.
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
Print this page