The Unspoken Debt: Why Our Political Silence is a Betrayal of Future Generations
There’s a glaring omission in today’s political discourse, and it’s not just about what’s being said—it’s about what’s being deliberately ignored. Personally, I think the silence around government debt is one of the most telling signs of our political class’s short-term thinking. It’s as if both sides of the aisle have agreed to pretend the problem doesn’t exist, while quietly passing the bill to our children and grandchildren. What makes this particularly fascinating is how normalized this avoidance has become. Remember when debt and deficits were the bogeymen of every election cycle? Now, they’re barely a footnote.
The Politics of Convenience
Here’s the thing: politicians love to promise the moon. Tax cuts? Sure. Increased spending on healthcare, education, or climate initiatives? Absolutely. But the hard questions—like how we’ll pay for it all—are conveniently left out of the conversation. In my opinion, this isn’t just irresponsible; it’s a form of intergenerational theft. We’re borrowing against the future without a clear plan to repay it. What many people don’t realize is that this isn’t just an economic issue—it’s a moral one.
Take Australia’s current fiscal situation. The budget papers project a cumulative deficit of $264 billion over the next five years, with no surplus in sight. Yes, our debt-to-GDP ratio is lower than some countries, but that’s a low bar to clear. What this really suggests is that we’re complacent, relying on the illusion that ‘it’s not as bad as elsewhere’ to justify our inaction. If you take a step back and think about it, this is the equivalent of a family maxing out their credit cards and telling themselves, ‘At least we’re not as broke as the neighbors.’
The COVID Hangover
The pandemic was a turning point, no doubt. Governments worldwide had to spend big to keep economies afloat, and that was the right call. But here’s where the narrative gets tricky: once the crisis passed, the spending didn’t stop. From my perspective, this is where the real problem lies. We’ve normalized deficits in good times, which is like running up your credit card on a vacation and then refusing to pay it off when you’re back at work.
Former Treasury Secretary Martin Parkinson recently sounded the alarm on this very issue, pointing out that we should be running surpluses in a strong economy. Instead, we’re digging ourselves deeper into debt. What’s especially interesting is his observation that neither side of politics seems willing to address this. The government isn’t under pressure to act because the opposition’s proposals are often even more fiscally reckless. It’s a race to the bottom, and future generations are the ones who’ll hit the ground.
The Intergenerational Injustice
One thing that immediately stands out is how this debt burden disproportionately affects the young. As Parkinson and his predecessor, Ken Henry, have noted, our tax and benefit system is already skewed against younger generations. Adding mountains of debt to their shoulders only compounds the injustice. It’s like we’re saying, ‘Sorry, kids, we enjoyed the benefits, but you’re stuck with the bill.’
This raises a deeper question: what kind of legacy are we leaving behind? Debt isn’t just a number on a spreadsheet; it’s a constraint on future opportunities. When governments borrow to cover deficits, they’re not just spending money—they’re limiting the ability of future governments to invest in critical areas like education, healthcare, and infrastructure.
The Migration Wildcard
Parkinson also raises an intriguing point about migration. On the surface, a larger population seems like a solution to spreading the debt burden. But it’s not that simple. A detail that I find especially interesting is how the type of migration matters. Skilled workers who fill labor shortages can contribute more in taxes than they take in benefits, easing the burden. But if migration primarily consists of low-wage workers or those reliant on government assistance, the opposite can happen.
This highlights a broader issue: not all growth is created equal. We need to be strategic about how we grow our population and economy, ensuring that it’s sustainable and doesn’t exacerbate existing inequalities.
The Cost of Silence
What’s most frustrating about this issue is how avoidable it is. We’re not talking about solving climate change or curing cancer—this is basic fiscal responsibility. Yet, our political leaders seem more interested in short-term popularity than long-term sustainability. In my opinion, this is a failure of leadership, plain and simple.
If you ask me, the solution isn’t rocket science. We need to match deficits in bad times with surpluses in good times. We need to prioritize spending on infrastructure and other long-term investments while cutting back on wasteful programs. And we need to have an honest conversation about taxes—because, let’s face it, there’s no such thing as a free lunch.
A Call to Action
Here’s the bottom line: our political silence on debt isn’t just a policy failure; it’s a betrayal of future generations. We’re choosing to ignore the problem because it’s inconvenient, but the consequences will be anything but. Personally, I think it’s time for voters to demand better. Let’s stop rewarding politicians for empty promises and start holding them accountable for the long-term health of our economy.
Because if we don’t, the bill will come due—and it’ll be our children paying the price.
