Really I have no one else to blame for this but it was suggested to me that I reply to an article at The Drum which has now got me looking at the site and reading some of the articles. One has in particular caught my eye, “Our wealth has only grown since the carbon tax”, written by Stephen Koukoulas. Now whatever else might have happened in the world, the notion that introducing a carbon tax has made us a more prosperous community has got to be one of the least plausible possibilities imaginable. But there it is in the title and there it is again in the text. So naturally my curiosity got the better of me and so I looked to see what possible evidence there could be for such a thought, and here it is:
The half a trillion dollar lift in the stock market and house prices reflects a 23 per cent lift in the ASX since 1 July 2012 which had added approximately $275 billion to the value of stocks, while a 5.1 per cent rise in house prices has added approximately $235 billion to the value of housing over the same timeframe.
This is hardly the stuff of an economic wrecking ball or outcomes that are ripping the heart out of businesses and families. On the contrary, it is a stunning boost.
The very ingredients of a bubble economy is being provided as proof that the economy has taken off since the introduction of the carbon tax. Well the Fed is looking for a new Chairman and we will be looking for a new Governor for the RBA in a few months’ time. If quantitative easing and asset inflation are your thing, we have just the name for the shortlist, that is for sure.