Australia’s fiscal position is anything but healthy. If we don’t take serious action soon we will be unable to respond to global shocks – which are not exactly out of the question.
Australia has run budget surpluses for the past two years, and we have one of the lowest net-debt-to-GDP ratios among advanced economies. One could be forgiven for thinking we’re in great fiscal shape.
The hard truth is that our fiscal position is anything but healthy. And if we don’t take serious action soon we’ll be in a dangerous position. A position in which we can’t respond to global shocks – which are not exactly out of the question. And a position in which today’s teenagers are worse off than their parents over those respective lifetimes.
Loading...
Richard Holden is scientia professor of economics at UNSW Business School. Connect with Richard on Twitter.
