Governments like ours choose to borrow, they don’t have to.
Chifley, Menzies, Holt, Gorton, McMahon, Whitlam and Fraser targeted budget deficits.
Australia has tried it before, in the 1990s. The proportion of participants eventually getting unsubsidised jobs was low.
Creating lots of new money is supposed to produce runaway inflation. The longer that it doesn’t happen, the more this branch of economics appears to have a point.
Modern Monetary Theory is suddenly popular because it implies governments can spend as much as they need to. But that spending comes with risks.
Modern Monetary Theory allows governments more freedom to run deficits, freedom the Australian government might need.
Critics complain that government debt saddles future generations with a financial burden. The critics are wrong.