The legacy of COVID-19 restrictions and the imbalance between tax incentives for labour and capital investment must be addressed by governments or face the risk that $50 billion in tax relief will be saved not spent, creating a drag on economic recovery.
Speaking at the Melbourne Economic Forum on Thursday, economists questioned whether there would be enough of what Great Depression economist Maynard Keynes called "animal spirits" in both businesses and households to kick start the economy again.
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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com
