Matt Grudnoff
Senior Economist

Is more debt inter generational theft?

A common argument we hear is that increasing debt is unfair on younger people. The argument that Peter Dutton is making is that higher debt today means that younger people will have less in the future.

Dutton is against increasing taxes to pay for government services. He is effectively saying that we should cut spending on services to help the next generation. But how will it help young people if we cut spending on the hospitals they will be born into or the schools they will be educated in?

A smarter way would be to tax enough to supply the services that Australians demand. Cutting spending will not make the next generation better off. It will just make the poorer and less able to access the government services that the generation before them took for granted.