Paying off the National Credit Card

I'm thrilled to read that the Australian Federal Government has now reduced its debt to zero. While I don't see eye to eye with everything that John Howard's government does, I've always strongly supported their commitment to reduce Australia's debt, and I'm thrilled that they have succeeded.

I grew up in an Australia where politicians' desires to improve the standard of living outstripped Australia's capacity to pay for that standard. So we put it all on the national credit card. I don't like the idea of running up a debt now that will be passed on to our children and grandchildren.

I'm all for social democracies that aim to provide a good standard of living to all, not just the opportunity of a good standard of living for the most skilled. However, I think it always needs to be balanced against what can be afforded. There will always be good works that we can't afford to do today, and borrowing to pay for them isn't a solution, it's just a black hole that can swallow you up. I only hope that future Australian governments will show the same fiscal prudence.