Newspaper article The Northern Star (Lismore, Australia)

Okay If Govt Lives on Borrowed Time

Newspaper article The Northern Star (Lismore, Australia)

Okay If Govt Lives on Borrowed Time

Article excerpt

AS WE step carefully through one of the greatest recessions since the 1930s, we are seeing the Federal Government borrowing large amounts to stimulate the economy. This is causing angst among many.

However, if we can use a business analogy, debt is okay if invested in assets that will generate a return on that investment which more than pays for the cost of the borrowings in the first place.

Government is no different.

Money borrowed and invested in the nation's infrastructure and other investments like broadband and education should be done in a way to generate a return on the investment.

Some of the great business successes in recent times have come from visionaries who have been able to look over the horizon.

Think Nokia under Jorma Ollilla with its brave and visionary 'telecommunications first' strategic direction, that led to the development of the company as the leader in mobile communications.

Perhaps also think of the senior management of a business equipment company that could not see anyone wanting multiple copies of a document - hence they turned down the photocopier development. …

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