It might seem far away, but the results of the US mid-term election are a good thing for Australia, according to Cypress College professor of political science Peter Mathews.
Joining Your Money Live from the ground in the US, Mathews said the results mean the Democrats should be able to bring about greater global stability in light of Trump’s unpredictable nature.
“He was coming out with heavy tariffs on Chinese goods,” he said. “It created a trade war with China and other countries in the world, and it was very bad for the economy and predictability.”
With Democrats in a stronger position of legislative power, they can act as a breaker on Trump’s proclivity to use the trade war angle in global policy, according to Mathews.
“It’s thought they may be able to calm him down and work on a fair trade model, not trade wars,” he said.
“If the Democrats can put a handle on Trump, I think the global markets will be more willing to invest and to increase, not just stock value, but productivity.”
“And that will go around the globe. So, I think Australia will do very well if the Democrats can work on calming Trump down and get him to be more reasonable on fiscal policy and also the policy on trade and tariffs.”
Watch the full interview above.