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The Howard-Costello government, seen as militant debt hawks, has announced their goal is to retire the entire national debt by 2005.
Has this government forgotten all of the economic and political lessons of the past 20 years? Take the American experience of the Reagan Government, they used surpluses to cut marginal tax rates, which is the most economically productive use of tax surpluses. Moreover, financing Social Security privatization, and tax reform, as much of the rest of the world is now doing, would enhance the long-term growth potential of the Australian economy substantially more than retiring Government Bonds...
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