We must borrow and build infrastructure

The program should be readily saleable to the community using the explanation that while debt is going to be increasing, the all-important measure of debt safety, debt as a proportion of GDP, is going to stay the same.

Surely it should not be too hard to convince the community that an extra $10 billion a year for infrastructure for no increase in debt, GDP ratio is a good thing.

We should always remember that anyone who is anti-borrowing is also anti-building.

We are, however, going through a period of exaggerated fears about debt, generated by political rhetoric and media hype. In business terms, the cost cutters seem to be in the saddle, rather than the business builders.

Accordingly, there will be opposition to borrowing, some of it trenchant. Nonetheless the arguments in favor of borrowing and building are so strong that they should force a new policy approach. Maybe pressure for change will have to come from the bottom up rather than top down.

We are a young and rapidly growing country, and must not allow political and media scaremongering to inhibit sensible action in the country's interest. We must get the best result we can from our present prosperity.

The only question is whether our political system can summon up the good sense, determination, and powers of persuasion to borrow and build.