A group of university academics have called on the Morrison Government to significantly increase housing stimulus in order to help drive Australia’s economic recovery:
In response to the COVID-19 recession, federal, state and territory governments quickly provided support to the housing industry for two reasons. First, to safeguard jobs and, second, because investment in the housing and construction industries has a high economic multiplier effect. However, new research released today shows further housing stimulus measures will be essential to help drive an economic recovery into 2021 and beyond.
Our research found the various stimulus programs to date are too small to have a big impact on an economic recovery…
Our research shows widespread industry support for the demand-side stimulus by governments. Cash grants have already increased new land and house sales significantly in most states and territories, which will feed through into building work…
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
