
The Federal Government has posted the first actual surplus for 15 years – as distinct from a projected surplus with celebratory coffee mugs just before covid struck.
The essential lesson is not to get stuck on the mantra of “surplus good, deficit bad” and that that is the be-all and end-all of budgetary (or fiscal) policy. Governments are not like households. They do not have to keep spending within the bounds of income or go bankrupt.
Continue reading “The obsession with surpluses”






