There are three key flow-on impacts the recent US election will have on Australia, says KnowHow founder Bushy Martin.
In a recent live ‘Bush Bite’ video on Facebook, while the US election results were playing out, Bushy addressed the potential ramifications.
“I really do feel for a lot of Americans in relation to what the ongoing outcome of the election will be and post-election will be,” Bushy said.
“What is really clear is that the polls [didn’t] have any quality, and what I think is really driving opinion is social media, and the social media algorithms are now such that we live in our own little ecosystems where we keep getting fed information that suits our preferences, and what that tends to do is further the great divide between one set of beliefs and another.”
Bushy said Australians should care about the outcome of the US election, because the impact will be felt in our country and beyond.
“[Biden] appears to be much more conciliatory and moves towards compassion,” he said.
“And why is that important? Because I think it will influence the way [he] approaches foreign affairs and America’s relationship with other countries and the global economy as it currently stands.”
Bushy outlined three areas where Australia would be affected.
“Firstly, the relationship with China, because certainly the Australian economy is very strongly reliant on what happens with China,” he said.
“With Trump’s very aggressive approach to China, already we’ve seen Australia being smacked on the fingers because of our relationship and support there, with a lot of moves around tariff tightening etc., so it is having an impact as far as that’s concerned.
“[Biden] is more likely to take a much more conciliatory, cooperative approach that may repair some of the risk that’s been there.
“There’s no doubt about it, the Australian stock market is impacted to some degree by what happens with the US stock market. So, I expect that there’s going to be quite a bit of volatility in shares in the short to medium term. So, if you’re in for the long term, it doesn’t matter, but expect it to be chopped around quite a bit.
Thirdly, Bushy said there would also be an impact on the Australian dollar.
“The Reserve Bank is trying to make us more competitive through the rate drops that they’re introducing to make sure that Australia is attractive, both in terms of imports and exports. And depending on what happens in the states, it may restrict that sort of an impact,” Bushy said.
“In relation to housing, there’s pretty much no direct flow-on impact at all. And there’ll be sort of minor impacts around the rest of it, but no direct correlation effect.”
Watch the full Bush Bite video here.
KnowHow founder Bushy Martin shares regular, live ‘Bush Bite’ videos on his Facebook page sharing tips and tricks to cut costs, boost your savings and take advantage of opportunities in property. Connect with Bushy here.
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