Why the present fiscal stance needs a rethink

In summary, Australia has got itself into a fiscal straitjacket, which is open to six objections:

A policy stance that militates against public investment in infrastructure thus gets low marks for both social and economic efficiency as well as on grounds of democratic legitimacy. With Australia’s public debt and tax levels at very low levels (historically and compared with the rest of the world) and with our social and environmental infrastructure perceived by most Australians to be in a state of neglect, it seems to be clearly in the national interest to relax the present fiscal straitjacket.