Pete, I'm not a Socialist either and of course Capitalism is the way to growth and wealth. No argument from me.
What we are discussing here is the economic hypocrisy our politicians feed to us. One minute it is "The deficit is too large" and we must reduce it. (ie likening it to a debt that will one day be untenable). The next they debate whether to build the NBN on the basis that it will send the budget into deficit for the next x years.
It is this leaping from a monitarist view of balanced budgets one minute to a Keynesian view of deficit spending the next.
My point is that a budget deficit in a country with a sovereign currency should not have and does not mean a "debt" as the general public recognizes a debt as it applies to their private lives. This "fear" of a debt should not instilled into the private sector as a cause for electing one particular political party over another.
It is only at Election time that these Politicians suddenly start thinking infrastructure. ie. My party will build a fast rail link between Sydney and Canberra and the other counters with .. My party will build a rail link between Petrie and Redcliffe. Both Parties promise spending with little regard to the effect on the budget. Yet both parties were arguing the notion of a balanced budget last week or last month.
In response to Mikes view I totally agree that essential infrastructure remain in the hands of the people. If this notion is defined by some as Socialist then so be it.
