Of course, this debt increase is of no immediate economic concern provided the investments are well-managed. There are compelling arguments that Australia's debt has been much too low given negative real interest rates and the opportunity for investments in productive infrastructure.
Australia's debt to gross domestic product is a mere 12.8% even with the recent Hockey blow-out. If that were doubled Australia's debt would still be less than Switzerland's. If tripled it would be less than Canada's. It could be multiplied by six and remain lower than Germany's and the UK's.
All these countries have a triple A credit rating and hence no discernible debt problem. So neither does Australia.
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Australia may, however, be experiencing something of a deficit in the fulfilment of pre-election commitments.
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About the Author
Alan Austin is an Australian freelance journalist currently based in Nîmes in the South of France. His special interests are overseas development, Indigenous affairs and the interface between the religious communities and secular government. As a freelance writer, Alan has worked for many media outlets over the years and been published in most Australian newspapers. He worked for eight years with ABC Radio and Television’s religious broadcasts unit and seven years with World Vision. His most recent part-time appointment was with the Uniting Church magazine Crosslight.
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