Since a price was put on carbon on 1 July 2012, there have been a few interesting developments in the Australian economy and markets.
Here are a few:
Employment has increased by 193,100.
The ASX has risen by 32 per cent, which has seen the market capitalisation of the Australian stock market rise by just under $400 billion in 20 months. Around $90 billion in dividends have been paid out, over and above this, over that time.
The value of house prices has increased by 14 per cent, adding more than $600 billion to the value of the housing stock.
In other words, the rise in wealth in stocks and houses since the price was put on carbon is approximately $1 trillion or just under $100,000 per household.
At the same time, the economy has kept growing, even though electricity consumption is falling and the amount of electricity generated from renewable sources has increased, just as the price signals said it would.
In terms of some price changes, since the carbon price started, beef and veal prices are 2.9 per cent lower, lamb prices have fallen 13.5 per cent; dairy produces are 0.9 per cent cheaper; clothing and footwear prices are 0.3 per cent lower, furniture prices are 0.9 per cent lower, house appliances are 1.6 per cent cheaper; cleaning products are 2.0 per cent cheaper, while personal care products are 1.9 per cent cheaper. Cars are 4.7 per cent cheaper, while electronic goods are 8.3 per cent lower in price. To name a few.
The dreaded carbon ‘tax’ as a “wrecking ball” for the economy, jobs, wealth and GDP?
Who ever said that!