Private Debt as Spending Room for Public Purpose

According to Australian private debt is over 200% of GDP.  It is time to make use of this fiscal space.  Of that private debt, over  120% of that is Household debt. We have the pre-approved spending room.

Think of private debt as the spending room for the public purpose from the public purse.

Nathan discusses this above in the US context and includes the non-fiscal ‘pay-fors’ with prudent regulation.  The Australian Prudent Regulation Authority has been using many of these suggested tools.  It is simply a part of creating and maintaining a good society.