The Australian government could increase debt by three quarters of a trillion dollars far more than anyone is suggesting and still have less debt as a percentage of our economy than the average among its G20 peers. Sadly, this will not prevent a flood of commentators and politicians in the coming months warning of an impending debt crisis in Australia. As soon as the crisis shows the faintest sign of abating, or perhaps even before then, the government will face tremendous political pressure to cut spending and pay down debt.
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