“I think the market will probably view a Labor government reasonably favorably. But I still have some big concerns.”
In the latest Planet Normal podcast (which you can listen to using the audio player above), columnist Liam Harrigan and guest co-host Baroness Claire Fox talk to independent economist Julian Jessop about whether a Labor government He talks about his thoughts on how to get by financially.
“What investors are really looking for is certainty and stability. I think some people view a change of government as a positive just because it means things will stabilize for a while.
“Rachel Reeves has recommitted to a lot of the things that the Conservatives have stuck to, especially fiscal rules, and that's going to pretty much tie her hands to some of the crazy things she might want to do. .”
However, the economist went on to tell Planet Normal that he was still sounding the alarm about how the Labor government would approach some elements of the economy.
“First of all, I think it is inevitable that we will need to raise taxes even more under a Labor government than we would have under a Conservative government.
“My second concern is their close relationship with trade unions. I think a lot of things happen in the labor market, but [such as] Significant increases above the minimum wage, which Labor describes as improving workers' rights, could actually backfire in terms of fewer job opportunities.
“The market will be pleased with the added certainty, but I think there are a lot of small problems.” [Labour] I think that will be the case, especially when it comes to taxes and the labor market, but it will stifle growth and probably mean that unemployment will be as high as it would otherwise be. ”
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